As a platform operator, Hopoti is required by Part XX of the Income Tax Act to report certain information about Hopoti sellers in Canada each calendar year. National legislation is based on Model Reporting Rules for Digital Platforms (MRDP) by the Organisation for Economic Co-operation and Development (OECD).
Each reportable seller will receive a prefilled ITA Part XX Form to fill out the required seller information yearly. Forms are sent via email and chat to all administrators personally, and you can also contact Hopoti Support to request a new link.
Only one filled ITA Part XX Form is required per business per year. Hopoti will take care of all the reporting duties – no further action is needed after filling out the form.
📊 Reporting – what is included?
Canadian sellers with certain types of sales that fall into the reporting rules must be reported yearly by the platform (Hopoti) to the local tax authorities (CRA) and may share this information with other Organisation for Economic Development (OECD) members. The report includes information about the seller (see below), and reporting obligated sales from each quarter.
💳 Sales – which payments are reported?
By default, we report all sales as reporting obligated, as most of them fall into one of these categories in Hopoti:
Personal services (e.g. riding lessons)
Rental of immovable property (e.g. facility hires)
Sale of goods (e.g. merchandise)
Rental of transport (e.g. travel packages)
The seller can request to mark some of their sales as not obligated by reporting by providing compelling evidence and contacting Hopoti Support.
⚖️ Legislation – is this required?
Yes, by the Canadian legislation (Part XX of the Income Tax Act) you, as the Seller, are required to provide the necessary information and ensure that they are correct, and we, as the Platform, are required to report this information forward every year. Additionally, if we can't receive the required information from the Seller, we must disable the Seller from our platform.
💼 Seller information – what is needed?
Each reportable seller will be sent a prefilled ITA Part XX form by Hopoti, which needs to be confirmed and filled by the seller each year before the due date. Please see below for the information required for different sellers.
Sellers who are "Company"
Example: Companies, Partnerships, Nonprofits and others
Legal business name
Primary address
Business registration number (BRN)
Other Tax Identification Numbers (TIN) issued to seller
Sellers who are "Individual"
Example: Sole traders
First and last name
Date of birth
Primary address
Business registration number (BRN)
Other Tax Identification Numbers (TIN) issued to seller
In the absence of a TIN, the place of birth of the seller
Sellers who are "Excluded"
The following excluded sellers do not have reporting obligations:
Government entities.
Entities listed on a stock exchange.
Sellers of goods with less than 30 transactions and for a total amount of C$2,800 in the reportable period.
Sellers that rent the same immovable property listing through the platform more than 2,000 times during the reportable period.
The seller can request to be marked as excluded by contacting Hopoti Support.
🛟 Any questions?
We're trying to make these requirements as smooth as possible for you and will do all the heavy lifting with reporting. If you have any questions, please let us know in the chat or by email at support@hopoti.com. Thank you for your co-operation!