The Reporting Rules for Digital Platform Operators pertain to the digital economy and its participants, particularly those in the sharing and gig economy.

The rules affect certain platform operators which enable sellers to generate income through the sale of goods or provision of certain services. These platform operators have to collect detailed information on certain sellers. This information needs to be verified and reported to the Canada Revenue Agency (CRA) annually.

What is a platform operator

Under the rules a platform operator is an entity that contracts with sellers to make all or part of a platform (for example, software such as a website or application) available to them to connect with customers. For the rules to apply, the platform must enable the provision of specific activities (referred to as relevant activities). The platform may also include the collection and payment of consideration in respect of those activities.

Software that exclusively allows, without any further intervention, for the following activities is not considered a platform under the rules:

• the processing of payments
• listing or advertising
• redirecting or transferring of users to another platform

What is a relevant activity

A relevant activity is:

• The sale of goods for consideration
• A relevant service

What is a relevant service

A relevant service is, when provided for consideration, any of the following:

• The rental of real or immovable property
• A personal service
• The rental of a means of transport
• A prescribed service

Sellers who will have their information collected and reported to the CRA may include those who participate in the following activities:

• Sale of goods
• Rental of real or immovable property (both residential and commercial)
• Rideshare and delivery services
• Personal services What are personal services

  Personal services are time- or task-based work performed by one or more individuals at the request of a user.

  Supplementary work that is needed to support a transaction (such as a seller packaging goods for shipping) or that is provided by a seller as an employee of a platform operator or related entity is not considered a personal service.