This is general information, not tax advice. Your accountant decides what goes on your return.
What the T2125 is
If you’re a self-employed travel advisor, you report your business income and expenses on Form T2125, Statement of Business or Professional Activities, as part of your personal tax return. Your net income from it is what you pay income tax on.
Part 3A: your commission income
Part 3A is where your income goes. The lines that matter for most advisors:
| Line | What it is |
|---|---|
| 3A | Gross sales, commissions or fees, including any GST/HST you collected |
| 3B | The GST/HST (and similar amounts) included in 3A |
| 3C | Subtotal: 3A minus 3B |
| 3D to 3F | Only if you use the GST/HST quick method |
| Line 8000 | Adjusted gross sales. Without the quick method, this is the same as 3C |
So if you received $40,000 in commission and $2,000 in GST on top, 3A is $42,000, 3B is $2,000 and 3C is $40,000. If you aren’t registered for GST/HST, 3A and 3C are the same.
Line numbers can change between versions of the form, so check the current T2125 on canada.ca, or let your accountant fill it in.
Your expenses
Business expenses go in a later part of the form, and they reduce the income you pay tax on. What you can claim depends on your situation, so keep receipts for everything business-related and let your accountant sort what counts.
What to bring your accountant
- Every commission payment you received in the year, by supplier or host
- Any clawbacks or reversals, and when they happened
- The GST/HST you collected, if you’re registered
- Commission statements from your host, if you have one
- Your expense receipts
Ask your accountant whether to report commission when it was received or when it was earned. It can make a difference for bookings near the end of the year.
Deadlines
For most self-employed people, the return is due June 15, but any tax owing is due April 30. Interest can apply to a balance paid after April 30, even if you file by June 15. Check the CRA for the current year’s dates.
How Arrivals helps
Arrivals’ year-end report lays out the year’s commission received by T2125 line, 3A, 3B and 3C, overall and for each host, with the GST/HST included. It exports as a CSV your accountant can work from. See the year-end report.