QUESTION

Can I deduct Amazon shipping supplies for a side hustle in Canada?

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Asked May 30, 2026
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Answer78% confidence

Yes — in general, you can deduct Amazon shipping supplies used for your side hustle in Canada, such as boxes, bubble wrap, packing tape, labels, and similar packaging materials, if they are reasonable expenses used to earn business income.

If you are self-employed or operating as a sole proprietor, these costs are generally claimed on Form T2125 (Statement of Business or Professional Activities) with your T1 return.

A few practical points:

  • Keep good records: save your Amazon receipts/invoices and note what each supply was used for in the business.
  • Separate business and personal use: if some supplies are used personally, only claim the business portion.
  • Report the expense in the category that best fits your books: packaging and shipping-related costs are often tracked as delivery/courier or supplies/office-type expenses, depending on how your business is set up.
  • If the packaging is part of the product you sell, it may be treated as inventory or cost of goods sold instead.

Important: the exact line/category can depend on your business type and the nature of the item, so it’s a good idea to check current CRA guidance or ask a tax professional if you want to be certain.

For CRA support, retain invoices/receipts that show the supplier, date, amount, and GST/HST charged where applicable. If you’re missing detailed documentation, it can make support for the deduction harder in an audit.