This is general information to help you ask the right questions. It is not tax advice. Check the Canada Revenue Agency website or ask an accountant for your situation.
The small supplier idea
Canada has a small supplier threshold. Below it, you are generally not required to register for GST/HST. Above it, you generally must register. The threshold and how it is measured are set by the CRA, so read the current rules on canada.ca.
Things to track from day one
- Total sales, including shipping you charge
- Fees you pay to marketplaces and providers
- Which province your buyers are in
- Receipts for supplies and equipment
Marketplace collection
Marketplaces may collect and send some taxes for certain sales. That does not automatically cover your own registration duties. Read Etsy’s tax pages for Canada and your own billing statements.
Voluntary registration
Some sellers register before they must, so they can claim input tax credits on business expenses. There are trade offs, so look into it before choosing.
Income tax is separate
Shop profit is generally reported on your income tax return. Keep clean records all year.
TREVOR: optional: add how you track sales and expenses for Odd Lantern Co.
