Can you deduct eBay seller fees on CRA taxes?

Yes — eBay seller fees can generally be deducted on your CRA return if your eBay activity is a business (for example, you buy or make items to resell with a reasonable expectation of profit).

If you are a sole proprietor, you would normally report the income and related expenses on Form T2125 (Statement of Business or Professional Activities) with your T1 return. In that case, many eBay-related charges are often business expenses, such as listing/insertion fees, final value fees, store subscription fees, promoted listings or ad fees, and some other selling-related charges, if they are incurred to earn business income.

If you are only selling personal items from around the house, those sales are generally treated under personal-use property rules rather than as business income. In that situation, you usually cannot deduct eBay fees or other selling costs against personal losses. Depending on the item and your facts, there may still be reporting or tax consequences under CRA’s personal-use property rules, so it’s worth checking the current CRA guidance.

Keep good records of your eBay statements and fee summaries, inventory and cost receipts, shipping and packaging costs, and any other business-use expenses that apply.

Because the exact tax treatment depends on your facts, it’s best to verify your situation against CRA guidance or a tax professional if your selling is frequent, mixed, or near the line between hobby and business.