Updated Checked by the Tax-Services.ca editorial team How we check
Most e-commerce tax forms come down to two things. You report the profit on your own return (a T1 with form T2125 if you’re a sole proprietor, or a T2 if the store is a corporation), and you register for GST/HST once your sales pass $30,000 over four calendar quarters. Everything else is detail.
Which e-commerce tax forms does a sole proprietor file?
If you sell under your own name, with no corporation, you don’t file a separate business return. Your sales and expenses go on form T2125, the Statement of Business or Professional Activities, and the profit lands on your regular T1. You need one T2125 for each business you run.
The dates matter more than the form. For the 2025 return, self-employed filers had until June 15, 2026 to file, but any tax owing was still due April 30, 2026. That gap catches people every spring. We couldn’t find the dates for the 2026 return yet, so check the CRA’s filing page before you plan around June.
Say your store nets $80,000 in Ontario. The self-employed tax calculator shows $22,126 going to income tax and CPP, which leaves $57,874. It counts both halves of CPP and leaves out GST/HST and EI, so it’s a floor for planning, not a bill.
When do you have to register for GST/HST?
You’re a small supplier, and don’t have to register, until your taxable sales go over $30,000 across four consecutive calendar quarters. If one single quarter takes you over, you’re registered from the day of the sale that did it, and you charge tax on that sale too. After that you have 29 days to complete the registration. The CRA’s page on when to register for and start charging the GST/HST spells out both tests.
Nothing stops you registering early. Whether that pays off at $12,000 in sales depends on your purchases and your margins, and we can’t judge it from here. Check your own numbers first.
| Item | What the CRA says |
|---|---|
| Small supplier limit | $30,000 over four consecutive calendar quarters |
| Registration deadline | Within 29 days of your effective date |
| Annual reporting period | Revenue under $1.5 million |
| Quarterly reporting period | $1.5 million to $6 million |
| Monthly reporting period | Over $6 million |
| Monthly or quarterly return | Due one month after the period ends |
| Corporation return (T2) | Six months after the year end, filed online |
Which GST/HST rate goes on a parcel?
The rate follows the customer, not you. For most physical goods the CRA looks at the province where the goods are delivered, so a Nova Scotia seller shipping to Ontario charges the Ontario rate. The CRA keeps a table of GST/HST rates by province you can check any time.
On a $100 item, our engine gives $13 of HST in Ontario and $5 of GST in Alberta. Quebec adds $9.98 of QST on top of the $5 GST. That’s an $8 spread between Ontario and Alberta on a $100 sale, which adds up fast across a few thousand orders. Use the GST/HST calculator to check a price, and the HST reverse calculator if your listing price already includes tax and you need to back it out.
What changes if the store is a corporation?
Then the T2 corporation return applies. Corporations have to file it electronically for tax years starting after 2023, with a few exceptions such as insurance and non-resident corporations. A corporation that should have filed online and didn’t faces a $1,000 penalty.
The federal rate for a Canadian-controlled private corporation is 9% on the first $500,000 of active business income. Above that the general rate is 15%. Provinces add their own on top. Ontario’s small business rate changes in July 2026, and our blended figure for a calendar 2026 year is our own derivation, not a published number. Try the corporate tax calculator and treat the Ontario line as an estimate.
Where do online sellers go wrong?
The usual mistake is treating GST/HST collected as income. It isn’t yours. You’re holding it for the CRA, so park it in its own account.
The second is missing the threshold because sales came in a burst. A holiday quarter alone can push you over $30,000, and then registration is backdated to the day of the sale. Think of Aisha in Surrey, who sells phone cases. November and December bring her $31,000 in six weeks, and she finds out in January that tax was due on part of it. The third mistake is guessing at instalments once you’re profitable. The tax instalments calculator shows the quarterly amounts when your net tax owing passes the CRA’s $3,000 threshold.
Keep everything.
Platform payout reports, shipping receipts and supplier invoices all count as records.
What should you do first?
Add up your last four quarters of taxable sales, across every platform and your own site. If you’re past about $25,000, look at registering before the choice is made for you. Then open a separate bank account for the business, and a savings pot for tax. A tidy start now saves you from digging through a year of mixed-up payouts at tax time.
What this page is based on
The thresholds, filing dates and penalty come from Canada Revenue Agency pages on GST/HST registration, place of supply, form T2125 and the T2 return. Our federal corporate rates come from the CRA’s corporation tax rates page. The example figures come from the calculators on this site, using 2026 tax data. This site is independent and not affiliated with the CRA.
Frequently asked questions
Do I need a business number to sell online?
Not to file a T2125 as a sole proprietor. You get a business number when you register for a GST/HST account, which you must do once you're past the $30,000 small supplier limit.
Which GST/HST rate do I charge on out-of-province orders?
For most physical goods, the rate of the province where you deliver them. A sale shipped to Ontario carries the Ontario HST rate wherever you're based.
Is the $30,000 limit yearly?
No. It's measured over four consecutive calendar quarters, and a single quarter above $30,000 also makes you a registrant.
Do I file a T2 if I sell through a marketplace?
Only if the selling business is a corporation. A sole proprietor reports the same sales on the T2125 with a personal T1.
What's the filing date for the 2025 return?
April 30, 2026 for most people, and June 15, 2026 for the self-employed, though tax owing was still due April 30. We couldn't find the 2026 return dates yet.
- Self-employed taxes in Canada: income, CPP and GST
How tax works when you are self-employed in Canada: reporting income and expenses, paying both halves of CPP, instalments and when to register for GST