Canada to charge sales tax on digital goods and services

On 23rd June, Canada passed a legislation that would expand the sales tax to digital goods and services. Bill C-30 passed by Canada’s senate in a 63-19 vote indicates that non-resident vendors supplying digital products or services (including traditional services) to consumers in Canada be required to register for the Goods and Services Tax/Harmonized Sales Tax (GST/HST), and to collect and remit the tax on their taxable supplies to consumers in Canada.”


Bill C-30 also requires that the distribution platform operators and non-resident vendors to register under the normal GST/HST rules and to collect and remit the GST/HST in respect of certain supplies of goods shipped from a fulfillment warehouse or another place in Canada. GST/HST applies to all supplies of short-term accommodation in Canada facilitated through a digital platform.


The expansion of a sales tax according to Bill C-30 means that corporate giants like Inc. and Netflix Inc. will have to start paying taxes on their services very soon, once the bill receives a formal procedure that will make it law.


Source: The official website of Parliament of Canada


Stay informed

Subscribe to newsletter
  • This field is for validation purposes and should be left unchanged.


Get the latest VAT information directly in your inbox and stay up to date with all VAT developments around the world.

You have Successfully Subscribed!