Do you work in the sharing economy? Here’s what you need to know
April 14, 2021
Canada Revenue Agency
What is the sharing economy?
The sharing economy connects individuals and businesses that are looking for a product or service to those that offer it. Arrangements are generally made using online platforms through a third party, or using a website or an application (app).
The sharing economy can take a variety of forms, such as:
- Transportation: ridesharing, rentals of bikes, boats, or food deliveries
- Accommodation Sharing: renting out your home, rooms, or cottage
- Space Rentals: industrial kitchens, parking spots, workspaces, or laboratories
Some examples of the types of online platforms considered part of the sharing economy are Airbnb, CanadaStays, Uber and Lyft.
Did you make income from the sharing economy?
If you make money participating in the sharing economy, you need to include this income on your returns and you may need to collect and pay goods and services tax / harmonized sales tax (GST/HST) to the Canada Revenue Agency (CRA) on your sales.
Tax implications for ridesharing
You must report all income earned from driving your vehicle for ridesharing purposes, including tips, on your income tax and benefit return. You must also complete Form T2125, Statement of Business or Professional Activities, and file it with your income tax return.
You must collect and pay the GST/HST to the CRA on all ridesharing fares.
The online platform may collect your fares for you. However, you are responsible for making sure the GST/HST is collected and paid to the CRA. You can collect the GST/HST yourself or have the platform send it to the CRA on your behalf.
The amounts withheld or deducted by a platform may be expenses you can deduct from your income when you calculate your tax payable. As well, the GST/HST you paid on these expenses may qualify for an input tax credit. Individual situations may vary.
Tax implications for accommodation sharing
You have to pay tax on all income you receive from accommodation sharing. Also, your income from accommodation sharing may be considered rental income from a property or a business. You have to report rental income you receive from renting a property or from accommodation sharing on your income tax and benefit return.
Accommodation sharing falls under short-term accommodation: renting for a period of continuous occupancy of less than one month. Short-term accommodation is not exempt from GST/HST like rentals of residential premises for periods of continuous occupancy of one month or more. If your accommodation sharing is for less than a month, you may need to register for a GST/HST account. You can get more details on GST/HST registration requirements at Find out if you must register for a GST/HST account.
In the province of Québec, Revenu Québec administers the GST and Québec sales tax. If your shared property or accommodation is in Québec, you may have to register for the GST and QST and register for the tax on lodging. You may want to consult Revenu Québec’s brochure on individuals and rental income for information on how income and expenses related to rental income are taxed.
How to correct your tax affairs
If you did not report your income from the sharing economy, you may have to pay tax, penalties and interest on the income. By correcting your tax affairs voluntarily, you can eliminate or reduce penalties and interest.
To correct your tax affairs (including corrections to GST/HST returns) and to report income you did not report in previous years, you may:
- Ask for a change to your income tax and benefit return
- Adjust a GST/HST return
- Apply for a correction through the Voluntary Disclosures Program
You can find more information on this topic at Canada.ca/platform-economy.
Canada Revenue Agency
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