Setpember 2025

Selling Online? Make Sure Your Sales Tax Is Set Up Right

Running an online store is exciting — but it also comes with sales tax obligations that many sellers overlook. If your total sales in Canada exceed $30,000 over any 12-month period, the CRA requires you to register for GST/HST, even if you're a sole proprietor or part-time seller. But here’s where it gets tricky: you don’t just charge your province’s rate — you charge tax based on where your buyer lives. That means shipping to Alberta? Charge 5% GST. Selling to Ontario? Charge 13% HST. And if you're using platforms like Shopify, Amazon, or Etsy, you still need to make sure your sales tax settings are correct and your CRA filings match what’s collected.

Selling internationally? Most sales outside Canada are considered zero-rated, which means you don’t charge GST/HST — but you still report those sales. With provincial rules (like in Québec and B.C.) and digital services complicating things further, it’s important to set it up right from the start. Not sure if you’re compliant? We can help review your setup and get your sales tax on track.

How to Protect Yourself from CRA Scams: Quick Checklist

With CRA scams on the rise, it’s more important than ever to stay vigilant and protect yourself and your business from fraudsters pretending to be the Canada Revenue Agency. These scams often involve aggressive tactics designed to create panic and pressure you into sharing sensitive information or making payments. Knowing how to recognize and respond to these threats is key to safeguarding your finances and personal data. Below is a quick checklist to help you identify CRA scams and take the right steps to avoid falling victim.

• Verify the source: Always contact the CRA directly using official phone numbers—1-800-959-8281 for personal tax inquiries or 1-800-959-5525 for business matters—or visit their official website before responding to any communication.

• Beware of payment requests: CRA never asks for payment by gift cards, prepaid cards, or cryptocurrencies.

• Don’t share personal info: Never provide your Social Insurance Number, banking details, or passwords over phone, email, or text unless you initiated the contact.

• Watch for urgent threats: The CRA will not threaten arrest or legal action without giving you time to respond through official channels.

• Train your team: Educate employees on recognizing scam tactics, especially if your business handles CRA communications.

• Monitor accounts: Regularly review your financial and tax accounts for unauthorized activity.

• Report suspicious contacts: Inform the CRA and the Canadian Anti-Fraud Centre if you receive any suspicious calls, emails, or messages.

CRA Update: Reporting Fees for Service (RFS) - What Small Businesses Should Know

The CRA’s Reporting Fees for Service (RFS) requirement remains an important compliance item for Canadian businesses. Simply put: if you pay more than $500 in a calendar year to a vendor for services (like consulting, legal advice, bookkeeping, or maintenance), you’re legally required to file a T4A slip (box 048) to report it to CRA. Although enforcement penalties have been paused since 2011, CRA confirmed the moratorium remains temporary — and they’re actively refining policies to streamline reporting for businesses going forward.

In 2024, CRA conducted extensive consultations—including questionnaires to small and medium-sized enterprises and a working group with CPA Canada, CFIB, and other stakeholders—to clarify confusion around reportable services, threshold levels, and reporting methods. Key feedback emphasized that:

• Many businesses are unaware of the requirement.

• The $500 threshold is too low and burdensome.

• T4A isn’t always the best vehicle for reporting.

• Definitions of what constitutes a “service” are unclear, especially when goods and services are bundled on invoices .

CRA has indicated they’re reviewing this feedback and may adjust implementation—possibly through higher thresholds, better definitions, or alternative reporting formats—while maintaining the intent to verify income and limit underground economy risk.

What you can do now:

• Review whether your business has made service payments over $500/year to vendors.

• Start preparing vendor listings and invoices.

• Consider issuing T4A slips now—even if enforcement isn’t active—to build good compliance habits.

Need help determining whether a payment counts, or if you should issue a T4A? We’re here to walk you through best practices so you're ready before any changes come into effect.

The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions in a newsletter such as this, a further review should be done by a qualified professional.

No individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents.

For any questions, please contact us.

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