Whatnot Tax Guide - Canada

This guide has been prepared by an independent third-party law firm. Every buyer’s and seller's situation is unique and so are their specific tax circumstances. The below stated information should not be considered as tax advice, but as a general overview of relevant tax rules. Whatnot does not provide tax advice for individual situations, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.

May 2026

CANADA – TAX CONSIDERATIONS FOR CANADA RESIDENT WHATNOT SELLERS

If you’re a seller based in Canada and want to sell stuff through Whatnot, let’s talk taxes!

Taxes can be tricky. You should keep up to date with your tax obligations and remain tax compliant. The timely preparation, filing and payment of taxes are your responsibility per the Whatnot Terms of Service.

As a Canada seller, make sure you are on top of the taxes that may apply to you, such as:

• Sales taxes; and

• Income taxes.

Just a heads-up: this guide covers sales tax and income tax for Canadian sellers. If you’re selling from outside Canada to Canadian consumers, it’s a different ball game – see here for our country guides for American and UK sellers.

The info in this guide isn’t all-inclusive and is definitely not legal or tax advice. If you’re not sure about your local tax rules, it’s a good idea to double-check with your tax authorities or a professional to get advice that is tailored to you. Whatnot cannot help you out with questions about this guide, it’s only intended as a jumping off point.

Just so you know, we don’t refresh this info on the fly. It’s best to verify if there’s been any recent changes to the laws and procedures.

SALES TAX

Sales taxes can get tricky, so make sure you understand the rules as they relate to your specific situation.

When selling and shipping goods, the sales tax rules and rates vary depending on the destination where the goods are delivered:

• Canada-wide customers:  Goods and Services Tax/Harmonized Sales Tax (“GST/HST”) rules will apply. GST is 5% and, in certain provinces, an additional amount for HST is charged for a combined GST/HST rate of: 13% Ontario, 14% Nova Scotia (down from 15% as of April 1, 2025), 15% Prince Edward Island, New Brunswick, and Newfoundland and Labrador.

• Québec customers: Québec sales tax (“QST”) rules will apply, in addition to GST. QST is charged at a rate of 9.975% for a total rate of 14.975% along with GST.

• British Columbia (“BC”) customers: BC provincial sales tax (“PST”) rules will apply, in addition to GST. BC PST is charged on goods at a rate of 7% for a total rate of 12% along with GST.

• Saskatchewan customers (“SK”): SK PST rules will apply, in addition to GST. SK PST is charged on goods at a rate of 6% for a total rate of 11% along with GST.

• Manitoba customers (“MB”): MB PST rules will apply, in addition to GST. MB PST is charged at a rate of 7% for a total rate of 12% along with GST.

• Non-Canadian customers: Sales tax rules in the customer country will generally apply.

WHATNOT COLLECTION OF CANADIAN SALES TAXES

Canadian tax legislation mandates Whatnot to collect and remit sales tax for some purchases in Canada. 

For all sales of taxable items sold for delivery in Canada through the Whatnot platform, Whatnot collects the applicable Canadian GST/HST, QST, and PST in British Columbia, Manitoba, and Saskatchewan (“Canadian Sales Taxes”) on behalf of sellers and remits the tax to the appropriate tax authorities, (irrespective of the seller’s GST/HST or QST registration status).

As discussed here, by using Whatnot, you further agree to facilitate Whatnot’s collection of these taxes on your behalf, including the completion of certain ‘billing agent’ elections.

YOUR FURTHER CANADIAN SALES TAXES OBLIGATIONS

Despite Whatnot’s Canadian sales tax collections, you may still be required to register for Canadian sales taxes with the Canada Revenue Agency (“CRA”), Revenu Québec (“RQ”), and/or other provincial tax authorities depending on the specific tax’s registration rules as discussed for each tax below. 

You may collect such taxes on sales not made through the Whatnot platform.

• GST/HST

If you sell taxable goods or services in excess of $30,000 (all amounts in Canadian dollars) in the four calendar quarters prior to the current quarter and make any taxable sale in Canada (i.e., taxable goods delivered to an address in Canada), you are generally required to register for GST/HST. (This means that even if you sell $30,000 of goods delivered to customers outside Canada in the previous four quarters, you should be required to register for GST/HST as soon as you make a taxable sale inside Canada since your ‘worldwide’ taxable sales are above the $30,000 threshold.)

As noted above and in further detail here, once you are GST/HST-registered, Whatnot will still collect GST/HST on your sales in Canada and you are required to complete and submit the GST/HST ‘billing agent’ election forms (GST506) to facilitate Whatnot’s collection and remittance of GST/HST on your behalf. Sellers registered for GST/HST should email canadaGSTforms@whatnot.com to request a pre-signed election and return the signed form to the same address.

You are also required to regularly file returns (on a monthly, quarterly, or annual basis as determined by CRA) even if you have no GST/HST collectible in that period. Returns are required to be filed electronically.

For more information on GST/HST registration and returns see here and here.

• QST

QST is administered functionally identically to GST/HST but applies to sales made in Québec. As such, if you are resident in Québec and sell $30,000 of taxable goods or services in the four calendar quarters prior to the current quarter and make a taxable sale in Québec, you are generally required to register for QST. If you are not resident in Québec (but still within Canada), the similar rules apply, except you may be required to register under the ‘simplified’ QST system (see here). (As with GST, even if the $30,000 relates to sales outside Québec, once this threshold is met, you should be required to register for QST as soon as you make a taxable sale in Québec.)

As noted above and in further detail here, once QST-registered, Whatnot will still collect QST on your sales in Québec, and you are required to complete and submit the QST ‘billing agent’ election forms (GST506E/FP-2506-V) to facilitate Whatnot’s collection and remittance of QST on your behalf. Sellers registered for both GST/HST and QST should complete the form here. Completed forms should be returned to CanadaGSTForms@whatnot.com.

Once registered, you are also required to regularly file returns (on a monthly, quarterly, or annual basis as determined by RQ) even if you have no QST collectible in that period. Returns are required to be filed electronically.

For more information on QST registration and returns see here and here.

Please also note, Québec has additional reporting rules requiring Whatnot to collect and report sales information with respect to sellers making sales to consumers in Quebec. Further information on this process and the specific information reportable by Whatnot can be found here.

• BC PST

If you sell exclusively through online marketplaces which are registered for and collect BC PST on your sales (like Whatnot) you should not be required to register for BC PST.

Where you make sales outside such online marketplaces, you should generally be required to register if you are resident in BC and exceed certain monetary thresholds. Non-residents of BC (who are still located in Canada) can also be required to register under similar rules. 

As with GST/HST and QST, once registered, you are required to regularly file returns (on a monthly, quarterly, or annual basis as determined by the BC tax authority) even if you have no BC PST collectible in that period. Generally, the more you sell, the more frequently you will file returns.

For more information on BC PST registration and returns see here and here.

Please also note, British Columbia has additional reporting rules requiring Whatnot to collect and report sales information with respect to sellers making sales to consumers in BC. Further information on this process and the specific information reportable by Whatnot can be found here.

• SK PST

If you sell exclusively through online marketplaces which are licensed for SK PST (like Whatnot) you should not be required to register for SK PST.

Where you make sales outside such online marketplaces, you should generally be required to register once you make taxable retail sales in SK (i.e., a sale for consumption, not resale), whether you are resident in SK or elsewhere in Canada.

Once licensed, you are required to regularly file returns (on a monthly, quarterly, or annual basis as determined by the SK tax authority) even if you have no SK PST collectible in that period.

For more information on SK PST registration and returns see here and here.

• MB PST

If you sell exclusively through online marketplaces which collect MB PST on your sales (like Whatnot) you should not be required to register for MB PST.

Where you make sales outside such online marketplaces, you should generally be required to register if you are resident in MB and exceed certain monetary thresholds. Non-residents of MB (who are still located in Canada) can also be required to register under similar rules. 

Once registered, you are required to regularly file returns (on a monthly, quarterly, or annual basis as determined by the MB tax authority) even if you have no MB PST collectible in that period.

For more information on MB PST registration and returns see here and here.

Should I account for Canadian Sales Taxes on the fees charged by Whatnot to me?

In some cases, Whatnot will charge Canadian Sales Taxes on its fees to you.

Where the amounts represent GST/HST or QST and you are registered under the ‘standard’ GST/HST or QST system (i.e., not the ‘simplified’ QST system discussed above), you may be entitled to deduct those amounts from your GST/HST or QST collected/collectible for that reporting period as input tax credits (GST/HST) (“ITC”) or input tax refunds (QST) (“ITR”). If so registered, ITCs/ITRs can also potentially be claimed on the GST/HST or QST you pay on your business expenses, like shipping costs or streaming equipment used in the course of your business.

For more information on GST/HST input tax credits and QST input tax refunds see here and here.

Certain sellers may be eligible to elect to use a simplified method of calculating their GST/HST and QST payable under the ‘quick method of accounting’. Under this method, you charge the normal GST/HST or QST rate to your customers, but instead of claiming actual ITCs, you remit a fixed percentage of your taxable sales (excluding the tax) based on your business type and where you operate. That percentage is generally lower than the GST/HST or QST you collect, giving the effect of a small ITC. More information on this process can be found here. Even if this method is used, it does not apply or otherwise impact the arrangement for Whatnot to collect and remit GST/HST and QST on all of your sales made through the Whatnot platform.

By contrast, any PST charged on Whatnot fees (or your other business expenses) is not recoverable as ITCs/ITRs. However, you may be eligible for purchasing goods for resale on a PST-exempt basis.

SELLING TO CUSTOMERS OUTSIDE CANADA

Which rules apply if I sell to customers outside Canada?

Sales of goods delivered to customers outside Canada are generally not subject to Canadian Sales Taxes. However, the revenues from these sales may be required to be included in your Canadian Sales Tax returns (e.g., in the sales and other revenues section of your GST/HST return).

INCOME TAX 

Canada has a dual income tax system. Both the federal government and each of the 10 provinces and 3 territories impose their own income taxes. For most Canadians, the CRA collects both (i) federal income tax and (ii) provincial/territorial income tax on behalf of all provinces and territories except Québec. In Québec, residents must file two separate income tax returns: A federal income tax return with the CRA and a provincial income tax return with RQ. The provincial and territorial income tax legislations and regulations are generally similar to the federal Income Tax Act (Canada), but differences exist in tax rates, available credits, deductions and other rules depending where you reside on December 31st. 

The Canadian tax year for individuals runs from January 1 to December 31.

Filing deadlines are as follows:

• April 30: for most individuals.

• June 15: if you (or your spouse/common-law partner) report self-employment or business income.

Even if your filing deadline is June 15, any income tax you owe must be paid by April 30. After that date, the CRA/RQ may charge interest and penalties on any outstanding balance.

Canadian tax residents are generally taxed on their worldwide income. This means you must report all income earned anywhere in the world on your Canadian federal and provincial income tax returns.

Income you earn on Whatnot, including from live auctions, video shopping shows, and direct sales, is generally considered taxable income in Canada. Whether you sell occasionally or as a regular business, you are required to report this income on your personal federal and provincial income tax returns.

Most sellers report it as business income (or, in some cases, as commission income), which is fully taxable. However, in limited situations, such as the occasional sale of personal-use items you originally acquired for your own use (not for resale) with no clear profit motive, the gain may potentially be treated as a capital gain, where only 50% of the gain is taxable.

You must report your full earnings even if the platform does not issue a tax slip such as a T4A.

What are the Canadian tax authority’s contact details?

Outside of Québec, the CRA is responsible for administering and collecting all federal and provincial/territorial income taxes. For Québec, this falls to RQ. The contact information for both the CRA and RQ is available on their official website.

How is income tax in Canada calculated?

Income tax is payable on your taxable income for the year. This includes profits from selling goods through websites or apps, like Whatnot. The federal tax rate for individuals for 2026 starts at 14% on the first CA$58,523 of taxable income and rises progressively to 33% on income over CA$258,482. Provincial/territorial tax rates are added on top and vary by provinces/territories. The current list of federal and provincial/territorial rates for individuals can be found here. Québec tax residents pay provincial income tax to RQ using Québec's own tax brackets and rules (which differ from other provinces).

The amount of your platform sales included in taxable income depends on whether the activity is classified as business income or a capital gain:

• Business income (most common for regular sellers): 100% of net accounting profit (subject to certain adjustments under the Income Tax Act (Canada)) is taxable.

• Capital gains (possible in limited cases): Only 50% of the gain is taxable.

The classification depends on several factors, including:

• Your intention when you originally acquired the items

• Frequency and volume of sales

• Length of time you hold items before selling

• Whether you are carrying on a trade or business

Regular, frequent selling (especially with the intent to resell for profit) is generally treated as business income. Occasional sales of personal items originally bought for your own use are more likely to be treated as capital gains.

The final determination is based on your specific facts and circumstances. Misclassification can result in reassessments, penalties, or interest.

You can generally deduct reasonable expenses incurred to earn business income, such as:

• Cost of goods purchased for resale

• Platform fees

• Shipping and packaging costs

• Marketing expenses

• A reasonable portion of home office, internet, or phone costs (if applicable)

Expenses must be properly allocated if they are only partly business-related. Different deduction rules apply to business income versus capital gains.

How do I report taxes?

All Canadian tax residents are generally required to file Canadian federal and provincial/territorial income tax returns each year. 

Outside Québec: Sellers operating as individuals (sole proprietors) must file a T1 Personal Income Tax and Benefit Return with the CRA. 

Québec Specifics: Québec tax residents (and certain individuals carrying on business in Québec) must file two separate returns:

• A federal T1 return with the CRA, and

• A provincial TP-1-V return with RQ.

Once your return(s) are processed, the tax authorities will issue a Notice of Assessment (NOA). This document summarizes your taxable income, taxes payable (or refund), and any credits or benefits. Income tax returns may be reassessed later if the CRA or RQ determines that the original assessment was incorrect (for example, due to additional information received from platforms or discrepancies). Reassessments are subject to specific time limits under the Income Tax Act (Canada) and the Taxation Act (Québec).

CRA filing guidance and T1 forms can be found here and RQ filing guidance and  TP-1-V forms can be found here.

Different rules apply if you operate your selling activities through a corporation (e.g., filing corporate income tax returns).

What information does Whatnot report to Canadian tax authorities?

Whatnot is required to collect and report certain information about sellers and their activities to the CRA under the Reporting Rules for Digital Platform Operators (Part XX of the Income Tax Act (Canada)). 

Reported information typically includes:

• Seller identification details (name, address, date of birth, Taxpayer Identification Number/SIN)

• Business registration number (if applicable)

• Total consideration (gross sales/payments) paid or credited to you during the year

• Number of transactions or relevant activities

• Platform fees, commissions, or other amounts charged or withheld

• Other relevant financial and account information

Further information can be found here. 

There is no equivalent mandatory income tax reporting regime for digital platforms under the Taxation Act (Québec). However, RQ receives the relevant data through automatic information exchange agreements with the CRA for Québec residents.

These reporting obligations help tax authorities ensure sellers properly report their income. We strongly encourage you to maintain accurate records and report all platform income on your tax returns to avoid discrepancies that could trigger audits, penalties, or interest.

What are my Canadian income tax obligations for foreign income or as a non-resident?

As a Canadian resident, you are subject to tax on your worldwide income. This includes all income earned on our platform, regardless of where the buyers are located or where the transactions occur. If you also pay income tax on the same income in another country, you may be eligible for relief in the form of a foreign tax credit or deduction to help avoid double taxation. Canada also has tax treaties with many countries that can provide additional protection. 

Non-residents are generally only subject to Canadian income tax on Canadian-source income. This typically includes:

• Profits from carrying on a business in Canada (which may include selling through a Canadian platform in some cases)

• Certain other Canadian-source income

Income from sales to Canadian buyers by a non-resident seller does not automatically create Canadian income tax obligations, but specific facts (such as carrying on a business in Canada and having a "permanent establishment" in Canada) can trigger them.

Determining residency status and Canadian income tax obligations can be complex, especially for individuals who move between countries or sell internationally. Misclassifying your status can lead to significant adverse Canadian income tax consequences.

Which records do I have to keep?

You are generally required to keep all records related to your Canadian income tax matters for a minimum of six years from the end of the taxation year to which they relate. This includes:

• Platform payout statements and transaction history

• Sales records and invoices

• Expense receipts and supporting documents

• Records used to determine whether sales are business income or capital gains

Québec tax residents must also retain records for six years for RQ audit purposes. Since you file two separate income tax returns, maintain records that support both your federal and provincial filings.

The six-year period may be extended if the CRA or RQ audits your return, or if you file an objection or appeal. In such cases, you must keep records until the matter is fully resolved.