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 Amazon.com 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.