Certain digital platform operators should act now to collect information from specific sellers who use their platforms as part of new annual tax reporting obligations. Under these new compliance obligations, reporting platform operators (i.e., affected operators) are required to collect and verify data from certain sellers that use their platforms to sell goods or provide services or rental of real property, starting for the 2024 calendar year. These platform operators must ensure they have all the information needed to file their first reports with the CRA, which are due no later than January 31, 2025. In addition to filing with the CRA, these operators must also provide specific data to certain sellers by the same deadline.
Many types of digital platform operators, as well as other businesses that facilitate sales for third-party sellers, may be captured under these broad new reporting rules. For example, a retailer that facilitates the sales of goods of third-party sellers through its own digital platform may have to comply with these obligations. Operators subject to these rules should ensure their systems are collecting all the required data well in advance of the upcoming deadline to file information with the CRA. Note that the CRA has not yet published guidance on these new obligations and related filing processes.
Download this edition of the TaxNewsFlash to learn more.
