Hi N,

Great question — and it’s an important one for anyone sourcing inventory from Facebook Marketplace, Kijiji, or similar platforms.

Does CRA require receipts?

CRA requires you to keep source documents for every business expense. But “source documents” are defined very broadly. They are not limited to formal store receipts.

CRA states that acceptable documentation includes:

• sales or purchase invoices
• receipts
• agreements of purchase and sale
• bank / e-transfer records
• deposit slips
• cheques
• and other vouchers or correspondence that support the expenditure

Because informal sellers often can’t provide a formal receipt, CRA allows other reasonable evidence — as long as your documentation clearly supports the amount you are deducting.

What you should keep for Marketplace/Kijiji purchases

To safely deduct these sourcing costs, keep as many of the following as possible:

1. Proof of payment

• E-transfer confirmations or bank statements
• For cash: bank withdrawal slip + message thread confirming the purchase

2. Listing & messages

• Screenshot of the online listing (price, description, seller name)
• Chat history showing the agreed price and date

3. A simple written receipt (ideal, even if handwritten)

Example:
“Received $80 from N for used Nintendo Switch – Jan 15, 2026. – Alex P.”
This counts as a valid “receipt or other voucher.”

4. Your own purchase log
Maintain a spreadsheet with:

• date
• item purchased
• amount paid
• seller name or profile
• payment method
• screenshots attached

CRA accepts contemporaneous logs as supporting documents, especially for informal transactions.

5. Photo of the item

Before reselling, take a photo. This helps CRA connect the purchase to your inventory.

Can CRA deny expenses without a traditional receipt?

They can deny deductions if your documentation is weak, inconsistent, or incomplete.
But they will generally accept these expenses if your records are:

• organized
• consistent
• supported by reasonable evidence
• tied to actual resale activity

For resellers, this is completely normal — CRA sees this all the time.

Bottom line

Yes, you can deduct these sourcing costs.
Just build a credible paper trail using the items above. The stronger and more organized your evidence, the more likely CRA will accept the expenses in an audit.

Hope this helps!