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I am US citizen,none canadian resident,living in US, I opened up an ebay canada account last year, i made 3k this year and ebay want me to report it to CRA,i dont have SIN or any tax id from Canada.What will i do now?how will i report it? Do i have to report it? What should i do next?
Hi Hakan,
Even though you are not a Canadian resident, because you have earned income from a Canadian eBay account, the CRA will want you to report this income, especially because your earnings are from Canadian-based sources.
To report income to the CRA, you generally need a Social Insurance Number (SIN) or an Individual Tax Number (ITN). Since you don't have a SIN, you will likely need to apply for an ITN (Individual Tax Number), which is issued to non-residents who need to file a tax return in Canada.
Once you have your ITN, you can file a non-resident tax return (T1) along with form T2125 (Statement of Business Income & Expenses) for the income you earned on eBay Canada. You can file this online or through a tax professional who specializes in Canadian tax filings for non-residents.
Additionally, you can claim a deduction for the profit amount on the non-resident tax return under the category of 'income exempt under a tax treaty.' This income is exempt if you are not carrying on business through a permanent establishment (i.e., a fixed place of business) in Canada.