In the sharing economy, individuals share or trade goods, services or knowledge in exchange for payment or for no payment at all.
The many sharing or e-commerce platforms available have increased the number of transactions between individuals, to such an extent that the term “platform economy” is often used to encompass all related economic spinoffs.
With the rise of the sharing economy and the increase in transactions between individuals, a growing number of people are unaware of or do not understand their tax obligations. This can apply to you if you earn income from the sharing economy.
This misunderstanding of existing laws has created two serious challenges for society and tax authorities:
- The need for information has increased significantly, and the information provided is too often of poor quality.
- Tax non-compliance may rise.
In principle, you have to report all income you earn from the sharing economy, regardless of whether it was earned through a digital platform. There are a few exceptions to this rule, such as when you share expenses (carpooling for work, for example).
You may also have to register for the GST, HST or the tax on lodging as well as collect and remit those taxes.
We are constantly adapting to the reality of today's digital economy. That is why consumption taxes are now collected on goods and services sold from elsewhere in Canada by suppliers outside Québec. Moreover, effective January 1, 2019, the Québec sales tax now applies on services and incorporeal property sold from outside Canada.
To meet the increasing number of requests for information regarding transactions between individuals, we have added two sections to our website that deal with two key sectors of the sharing economy:
- short-term accommodations (accommodation sharing);
- remunerated passenger transportation, which includes taxis, limousines, Uber and Eva.
Read these sections to easily understand your rights and obligations.
Tax compliance agreements
Integrity and fairness are two of our driving values. That's why we work to ensure our tax system meets the new realities of the sharing economy and sharing platforms.
Since 2016, we have signed agreements with major players in the sharing economy, including:
- l'Entente relative aux exigences de conformité fiscale au Québec à l'égard des chauffeurs utilisant les plateformes « uberX », « uberXL » ou « uberSELECT » (French only);
- l'Entente relative aux exigences de conformité fiscale à l'égard des chauffeurs utilisant la plateforme « Eva » (French only);
- l'Entente de conformité fiscale relative à la taxe sur l'hébergement à l'égard des hôtes utilisant la plateforme « Airbnb » (French only).
These agreements provide a fair framework to ensure that transactions made in Québec using the Uber, Eva and Airbnb digital platforms comply with all tax laws.