Delivery Services Involving Platforms
GST/HST Info Sheet GI-202
September 2026
This info sheet explains how the GST/HST applies to local delivery services for goods, such as meals, household items, or groceries, provided by self-employed delivery drivers either to a platform, which may resell the service to merchants or consumers, or directly to merchants or consumers where a platform arranges the delivery. This info sheet does not apply to individuals who provide delivery services in the course of employment.
Meaning of significant terms
This info sheet focuses on how the GST/HST applies to local delivery services for goods, such as meals, household items, or groceries, provided by self-employed delivery drivers either to a platform or directly to merchants or consumers where a platform arranges the delivery. The significant terms have been adapted to that context for ease of reference and do not replace the definitions in the ETA.
Carrier means a person that supplies freight transportation services, such as delivery services, whether that person actually performs the services or not. A person needs only to accept liability as the supplier of the delivery service to be considered the carrier.
Consignee means a person to whom the goods are to be delivered, such as a consumer.
Continuous freight movement means the transportation of goods by one or more carriers to a destination specified by the shipper of the goods, where all freight transportation services supplied by the carriers are supplied due to instructions given by the shipper of the goods.
Freight transportation service (such as a delivery service) means, in part, a service of transporting goods. It also includes incidental property and services that are part of or incidental to a delivery service, such as warehouse, packing, and loading services, where they are supplied by the carrier that supplies the delivery service to the recipient of the delivery service, whether or not there is a separate charge.
Platform, for purposes of this info sheet, generally means a person that provides a website or mobile application (App) that allows merchants to list goods for sale, consumers to purchase and arrange for the delivery, and self-employed delivery drivers to perform the delivery.
Registrant means a person that is registered or required to be registered for the GST/HST, but generally excludes a person that is registered or required to be registered under special rules applicable to digital-economy businesses unless that person registered under those special rules begins carrying on business in Canada, requiring them to register under the regular rules that apply to most persons.
Shipper of goods means the person that transfers possession of the goods being shipped (such as a merchant) to a carrier at the origin (for example, the merchant's place of business) of a continuous freight movement. For GST/HST purposes, a person cannot be both a shipper and a carrier for the same shipment; the person is considered a shipper only.
Small supplier means a person whose revenue (along with the revenue of all persons associated with that person) from worldwide taxable supplies was equal to or less than $30,000 ($50,000 for public service bodies) in a single calendar quarter and over the last four consecutive calendar quarters.
For more information, refer to GST/HST Memorandum 2-2, Small suppliers.
Zero-rated supplies are supplies of property and services that are taxable at the rate of 0%. This means there is no GST/HST charged on these supplies, but GST/HST registrants may be eligible to claim input tax credits for the GST/HST paid or payable on property and services acquired to provide these supplies.
General
A delivery service of goods (such as meals, household items, or groceries) is a taxable supply that is either:
- subject to the GST/HST at the applicable rate for the location where the goods are delivered
- zero-rated (taxable at the rate of 0%) if the conditions of interlining are met
The process of interlining is when more than one carrier takes part in the supply of a delivery service during the course of a continuous freight movement from a shipper to a consignee but only one carrier invoices the shipper or consignee. Only the invoicing carrier that settles the delivery bill directly with the shipper or consignee is responsible for charging and collecting any applicable GST/HST. The other carriers involved are providing a zero-rated supply of a delivery service.
Although a platform may state that it is not a carrier, for GST/HST purposes, it may be a carrier if it assumes liability as the supplier of the delivery service. Indications that a platform is a carrier include the following:
- The platform purchases the delivery service from the self-employed delivery driver and resells that service to a consumer or merchant
- The platform is limiting its liability for the delivery service to a specific amount
- Complaints on issues with the delivery services are to be addressed with the platform
- The platform has the sole discretion of providing a refund for the delivery service
Where a person is transporting its own goods (that is, goods of which it has ownership) and transfers possession of those goods to a carrier, the person is deemed to be a shipper, not a carrier. The person must disclose this fact to the carrier to whom it provides shipping instructions.
Ownership of goods typically transfers at the merchant's place of business when the merchant hands the goods directly to the consignee or to the carrier, or when the goods are delivered to the consignee. Delivery service agreements typically specify when ownership of goods is transferred.
For more information on freight transportation services rules, go to GST/HST information for freight carriers.
For more information on interlining rules, go to If the freight transportation service has an interlining agreement - GST/HST information for freight carriers or refer to "Interlining" in GST/HST Memorandum 28-2, Freight Transportation Services.
Participants in a supply of a delivery service involving a platform
Typically, there are four participants in a supply of a delivery service involving a platform:
- a platform
- a merchant
- a self-employed delivery driver
- a consumer
Role of each participant
A platform may have various roles in the transaction, including any of the following:
- providing a service of arranging the transaction for the merchant and/or consumer
- acquiring the delivery service from the self-employed delivery driver and reselling that service to either the merchant or the consumer
- providing a single supply of delivered goods
- providing two separate (multiple) supplies of the goods and delivery service
A merchant is typically the shipper and may provide any of the following:
- only the goods, such as meals, household items, or groceries
- the goods and delivery service as a single supply
- the goods and delivery service as two separate (multiple) supplies
The distinction between a single supply and multiple supplies applies primarily to platforms and merchants. Platforms and merchants may refer to Single and multiple supplies for more information.
A self-employed delivery driver who provides services as an independent contractor is a carrier and may provide the delivery service to the platform, merchant, or consumer.
A review of the relevant agreements and the transaction is necessary in determining the following:
- the appropriate application of the GST/HST to delivery services involving a platform
- whether a platform could be considered a carrier, in addition to the self-employed delivery driver, for GST/HST purposes
Delivery services that are taxable based on the delivery location
In the following examples, access to the platform's website or App is free of charge and the merchant may include an invoice for the goods with the goods. The self-employed delivery driver is required to collect the GST/HST at the applicable rate based on the delivery location if they are a registrant.
Example 1
A platform provides a website or App that allows merchants to display goods that can be purchased by consumers and delivered by self-employed delivery drivers. The website or App provides delivery opportunities and payment processing services to merchants and self-employed delivery drivers.
The platform:
- receives a service fee from both the merchant and the self-employed delivery driver
- on behalf of the self-employed delivery driver, generates and sends an invoice to the merchant and collects the fee for the delivery service
- on behalf of the merchant, generates and sends an invoice to the consumer for the goods and delivery service and collects the amount owing
- is an intermediary amongst the various parties in the transactions and does not accept liability as the supplier of the delivery service; therefore, the platform is not a carrier for GST/HST purposes
The merchant:
- is the supplier of the goods and the delivery service to the consumer
- maintains ownership of the goods until they are delivered to the consumer
- purchases a delivery service from a self-employed delivery driver, and resells the delivery service to the consumer along with the goods
- is considered the shipper of the goods; therefore, the merchant cannot be a carrier for GST/HST purposes
The self-employed delivery driver:
- is the only carrier
- is required to collect the GST/HST at the applicable rate based on the delivery location
Example 2
A platform provides a website or App that allows merchants to display goods that can be purchased by consumers and delivered by the merchants' self-employed delivery drivers. The website or App provides delivery opportunities and payment processing services to merchants.
The platform:
- receives a service fee from the merchant
- on behalf of the merchant, generates and sends an invoice to the consumer for the goods and delivery service and collects the amount owing
- is an intermediary between the merchant and the consumer
- is not involved in arranging for the delivery service with a self-employed delivery driver
The merchant:
- is the supplier of the goods and the delivery service to the consumer
- maintains ownership of the goods until they are delivered to the consumer
- is responsible for the delivery service
- uses its own self-employed delivery driver to provide the delivery service
- acquires a taxable supply of a delivery service when the delivery is provided by a self-employed delivery driver
- is considered the shipper of the goods; therefore, the merchant cannot be a carrier for GST/HST purposes
The merchant's self-employed delivery driver:
- is the only carrier
- is required to collect the GST/HST at the applicable rate based on the delivery location
Example 3
A platform provides a website or App that allows consumers to select goods for purchase and delivery by self-employed delivery drivers. The website or App provides delivery opportunities to self-employed delivery drivers.
The platform:
- charges the consumer a fee when they place an order
- procures and fulfills the goods
- gathers and packs the goods ordered by the consumer
- is responsible for the accuracy of the order and the packaging
- purchases a taxable supply of a delivery service from a self-employed delivery driver and uses that service for the platform's supply to the consumer
- is the supplier of the goods and the delivery service to the consumer
- maintains ownership of the goods until they are handed to a self-employed delivery driver
- is considered the shipper of the goods; therefore, the platform cannot be a carrier for GST/HST purposes
The self-employed delivery driver:
- is the only carrier
- is required to collect the GST/HST at the applicable rate based on the delivery location
Example 4
A platform provides a website or App that allows consumers to send packages for delivery by self-employed delivery drivers. The website or App provides delivery opportunities and payment processing services to self-employed delivery drivers.
The platform:
- charges fees to self-employed delivery drivers (refer to "The self-employed delivery driver" below)
- on behalf of the self-employed delivery driver, generates and sends an invoice to the consumer for the delivery service and collects the amount owing
- is an intermediary between the self-employed delivery driver and the consumer and does not assume liability as the supplier of the delivery service; therefore, the platform is not a carrier for GST/HST purposes
The self-employed delivery driver:
- charges the consumers a delivery fee and other fees for the delivery services
- pays the platform a fee that is equal to the other fees charged to the consumers plus a service fee
- is providing a taxable supply of a delivery service
- is required to collect the GST/HST on the total amount charged to the consumer for the package delivery
Example 5
A platform provides a website or App that allows merchants to display goods, such as household items or groceries, that can be purchased by consumers and delivered by self-employed delivery drivers. The website or App provides delivery opportunities and payment processing services to merchants and self-employed delivery drivers.
Consumers use the website or App to browse, select, and purchase a merchant's goods, such as household items or groceries, through the platform. The consumer may have the option to pick up the goods at the merchant's location or to have the goods delivered by a self-employed delivery driver. When a consumer requests that the goods be delivered, the merchant can choose to gather and pack the goods itself or have the self-employed delivery driver gather and pack the order (provide a packing/shopping service) in addition to providing the delivery service.
The platform:
- receives a service fee from both the merchant and the self-employed delivery driver
- on behalf of the self-employed delivery driver, generates and sends an invoice to the merchant for the packing/shopping service and delivery service and collects the amount owing
- on behalf of the merchant, generates and sends an invoice to the consumer for the goods and delivery service (including the gathering and packing services) and collects the amount owing
- is an intermediary amongst the various parties in the transactions and does not accept liability as the supplier of the delivery service; therefore, the platform is not a carrier for GST/HST purposes
The merchant:
- is the supplier of the goods and the packing/shopping and delivery services to the consumer
- maintains ownership of the goods until they are delivered to the consumer
- where the goods are to be delivered to the consumer, acquires the services of a self-employed delivery driver to provide the packing/shopping and delivery services
- resells the packing/shopping and delivery services to the consumer along with the goods, and may charge the consumer a delivery fee
- is considered the shipper of the goods; therefore, the merchant cannot be a carrier for GST/HST purposes
The self-employed delivery driver:
- is the only carrier
- is required to collect the GST/HST at the applicable rate based on the delivery location
A freight transportation service, such as a delivery service, is defined to include any other property or service that is part of, or incidental to, a delivery service where they are supplied by the carrier that supplies the delivery service to the recipient of the delivery service, whether or not there is a separate charge. As a result, a supply of property or a service that is part of, or incidental to, a supply of a delivery service is subject to the GST/HST at the same rate as the delivery service.
The packing/shopping service provided by the self-employed delivery driver is an element that is part of, or incidental to, the delivery service that the self-employed delivery driver provides to the merchant and which the merchant resupplies to the consumer.
Delivery services that are zero-rated under the interlining rules
In the following examples, access to the platform's website or App is free of charge and the merchant may include an invoice for the goods with the goods.
Example 6
A platform provides a website or App that allows consumers to select goods for purchase and delivery by self-employed delivery drivers. The website or App provides delivery opportunities to self-employed delivery drivers.
The platform:
- is not the supplier of the goods sold
- fulfills the order for the merchant by gathering and packing the goods ordered by the consumers
- is responsible for the accuracy of the order and the packaging
- purchases delivery services from self-employed delivery drivers, and resells the services to the consumers
- charges the consumer a delivery fee
- is considered a carrier of the goods
- is, under the interlining rules, the carrier that is billing the delivery service to the consumers even if another carrier (self-employed delivery driver) actually performs the delivery; therefore, the delivery service provided by the platform is subject to the GST/HST at the applicable rate based on the delivery location
The merchant:
- is the supplier of the goods to the consumers
- maintains ownership of the goods until they are handed to a self-employed delivery driver
- is considered the shipper of the goods; therefore, the merchant cannot be a carrier for GST/HST purposes
The self-employed delivery driver:
- is considered a carrier of the goods
- is not required to collect the GST/HST because they are providing a zero-rated (taxable at the rate of 0%) delivery service to the invoicing carrier (that is, the platform), and not to the consumers
Example 7
A platform provides a website or App that allows merchants to display goods that can be purchased by consumers. The website or App provides delivery opportunities to merchants and self-employed delivery drivers and payment processing services to merchants.
The platform:
- receives a service fee from the merchants
- purchases delivery services from self-employed delivery drivers, and resells the delivery services to the consumers or to the merchant if the consumer is not charged a delivery fee because of a promotion
- limits the amount of its liability for the delivery service to the consumer
- on behalf of the merchant, generates and sends an invoice or receipt to the consumer for the goods purchased
- generates and sends an invoice or receipt to the consumer for the delivery services provided by the platform
- is considered a carrier of the goods
- is, under the interlining rules, the carrier that is billing the delivery service to the consumer even if another carrier (self-employed delivery driver) actually performs the delivery; therefore, the delivery service provided by the platform is subject to the GST/HST at the applicable rate based on the delivery location
The merchant:
- is the supplier of the goods to the consumer
- maintains ownership of the goods only until the goods are handed to the self-employed delivery driver at the merchant's place of business
- is not responsible for the delivery of the goods
The self-employed delivery driver:
- is considered a carrier of the goods
- is not required to collect the GST/HST because they are providing a zero-rated (taxable at the rate of 0%) delivery service to the invoicing carrier (that is, the platform), and not to the consumer
Example 8
A platform provides on-demand delivery services to merchants that can be integrated into the merchant's own website and point-of-sale software. Alternatively, the platform can create a merchant branded website or App for the merchant.
The platform:
- purchases delivery services from self-employed delivery drivers for delivery orders, and resells the delivery services to the merchants
- is considered a carrier of the goods
- is, under the interlining rules, the carrier that is billing the delivery service to the merchant even if another carrier (self-employed delivery driver) actually performs the delivery; therefore, the delivery service provided by the platform is subject to the GST/HST at the applicable rate based on the delivery location
The merchant:
- is the supplier of separate supplies of the goods and the delivery service to the consumer
- maintains ownership of the goods only until the goods are handed to the self-employed delivery driver at the merchant's place of business
- pays the platform a fee per delivery
The self-employed delivery driver:
- is considered a carrier of the goods
- is not required to collect the GST/HST because they are providing a zero-rated (taxable at the rate of 0%) delivery service to the invoicing carrier (that is, the platform), and not to the merchant
Example 9
A platform provides a website or App that allows merchants to display goods that can be purchased by consumers and delivered by either the merchants' self-employed delivery drivers or the platform's self-employed delivery drivers based on demand. The website or App provides delivery opportunities and payment processing services to merchants and may provide delivery opportunities to self-employed delivery drivers.
The platform:
- receives a service fee from the merchants
- purchases delivery services from self-employed delivery drivers, and resells the delivery services to the merchants when requested by merchants
- is considered a carrier of the goods
- is, under the interlining rules, the carrier that is billing the delivery service to the merchant even if another carrier (self-employed delivery driver) actually performs the delivery; therefore, the delivery service provided by the platform is subject to the GST/HST at the applicable rate based on the delivery location
The merchant:
- is the supplier of a single supply of the goods that are sold on a delivered basis to the consumer
- maintains ownership of the goods until they are delivered to the consumer
- is responsible for the delivery service
- may, however, redirect orders intended to be delivered by the merchant so that they are, instead, delivered by a self-employed delivery driver subcontracted by the platform; the merchant pays the platform a fee for this delivery service
The platform's self-employed delivery driver:
- is considered a carrier of the goods
- is not required to collect the GST/HST because they are providing a zero-rated (taxable at the rate of 0%) delivery service to the invoicing carrier (that is, the platform), and not to the merchant
Example 10
A platform provides a website or App that allows merchants to display goods, such as household items or groceries, that can be purchased by consumers and delivered by self-employed delivery drivers. The website or App provides delivery opportunities to merchants and self-employed delivery drivers and payment processing services to merchants.
Consumers use the website or App to browse, select, and purchase a merchant's goods through the platform. The consumer may have the option to pick up the goods at the merchant's location or to have the goods delivered by a self-employed delivery driver. When a consumer requests that the goods be delivered, the merchant can choose to gather and pack the goods itself or have a self-employed delivery driver gather and pack the order (provide a packing/shopping service) in addition to providing the delivery service.
The platform:
- receives a service fee from the merchants
- purchases delivery services from self-employed delivery drivers, and resells the delivery services to either the merchant or the consumers
- on behalf of the merchant, generates and sends an invoice or receipt to the consumer for the goods purchased and the delivery service provided by the platform
- is considered a carrier of the goods, regardless of to whom the platform resells the delivery service
- is, under the interlining rules, the carrier that is billing the delivery service to the consumer or merchant even if another carrier (self-employed delivery driver) actually performs the delivery; therefore, the delivery service, which includes the packing/shopping service, provided by the platform is subject to the GST/HST at the applicable rate based on the delivery location
The merchant:
- is the supplier of the goods to the consumer
- maintains ownership of the goods only until the goods are handed to the self-employed delivery driver at the merchant's place of business
- is not responsible for the delivery of the goods
The self-employed delivery driver:
- is considered a carrier of the goods
- is not required to collect the GST/HST because they are providing a zero-rated (taxable at the rate of 0%) delivery service, which includes the packing/shopping service, to the invoicing carrier (that is, the platform), and not to the consumer or the merchant
A freight transportation service, such as a delivery service, is defined to include any other property or service that is part of, or incidental to, a delivery service where they are supplied by the carrier that supplies the delivery service to the recipient of the delivery service, whether or not there is a separate charge. As a result, a supply of property or a service that is part of, or incidental to, a supply of a delivery service is subject to the GST/HST at the same rate as the delivery service.
The packing/shopping service provided by the self-employed delivery driver is an element that is part of, or incidental to, the delivery service that the self-employed delivery driver provides to the platform and which the platform resupplies to the merchant or consumer.
Single and multiple supplies
For a platform or merchant to determine how the GST/HST applies, it is important to consider whether the goods and the delivery service is a single supply or two separate supplies. For more information, refer to GST/HST Policy Statement P-077R2, Single and Multiple Supplies.
Where a platform or merchant supplies the goods and the delivery service together as a single supply, the GST/HST generally follows the tax treatment of the goods. For example, when basic groceries (which are zero-rated) are sold on a delivered basis to a consumer as a single supply, the entire supply is zero-rated.
Where goods that are taxable at different rates, including zero-rated goods, are supplied as separate supplies and on a delivered basis, the delivery forms part of those supplies. As a result, the delivery charge must be reasonably apportioned between the goods, and the GST/HST applies to each portion of the delivery charge at the same rate as the goods to which it is attributable.
However, where the delivery service is supplied separately from the goods, the GST/HST treatment of the delivery service is determined based on the destination of the delivery service, regardless of the tax status of the goods being delivered.