Taxes on ShopBroker

Here's what you need to know about taxes when buying and selling on ShopBroker.

For Buyers

Are Prices Listed With Tax?

Item prices on ShopBroker are set by individual sellers. Most sellers list prices that do NOT include HST/GST.

Do I Pay HST on Purchases?

It depends on the seller:

Casual sellers: Most individuals selling personal items don't charge HST
Business sellers: Registered businesses may include or add applicable taxes

Check with the seller if you need clarification.

Delivery Fees

Delivery fees are shown at checkout and include any applicable taxes. The amount shown is what you pay.

For Sellers

Do I Need to Charge HST?

Casual sellers (most users): If you're selling personal items occasionally, you generally don't need to register for or charge HST.

Frequent sellers: If your sales exceed $30,000 in any four consecutive quarters, you may need to register for HST/GST and charge tax. Consult a tax professional.

Registered businesses: If you're already registered, you should be charging and remitting HST on your sales.

Your Service Fee

ShopBroker's service fee is deducted from your payouts. Your transaction records show this for accounting purposes.

Record Keeping

For Buyers

Keep your:

Order confirmation emails
Payment receipts
Any invoices from business sellers

These help if you need to claim purchases as business expenses.

For Sellers

Keep records of:

All transactions
Service fees paid
Payout amounts
Stripe/PayPal statements

These help with tax reporting if needed.

Tax Documents

Stripe

If you meet payment thresholds, Stripe may provide tax information slips:

T5018 for Canadian sellers
Available in your Stripe dashboard

PayPal

PayPal provides transaction summaries you can use for tax reporting. Check your PayPal dashboard.

ShopBroker

We can provide transaction records on request. Contact support if you need documentation.

Seller Tax Responsibilities

ShopBroker doesn't provide tax advice, but here are general guidelines:

What to Report

As a seller, you may need to report your earnings to the CRA. This includes:

All sales revenue
Less any applicable deductions

Potential Deductions

If selling as a business, you might deduct:

ShopBroker service fees
Packaging costs
Delivery fees you absorb
Items purchased for resale

Consult a Professional

Tax situations vary. Speak with an accountant or tax professional about your specific circumstances.

Common Questions

Is ShopBroker a business?

ShopBroker is a platform that connects buyers and sellers. We charge service fees and applicable taxes on those fees.

Do I get a tax receipt?

Your transaction records serve as receipts. Stripe/PayPal provide official statements for payment records.

What if I sell a lot?

High-volume sellers should:

Track all transactions carefully
Consider GST/HST registration if over thresholds
Report income appropriately
Consult a tax professional

Are delivery fees taxable?

Delivery services are generally taxable. Any applicable tax is included in the fee shown at checkout.

Disclaimer

This information is for general guidance only. ShopBroker does not provide tax advice. Tax laws change, and individual situations vary. Please consult a qualified tax professional for advice specific to your situation.