June 30, 2021 Ottawa, Ontario Canada Revenue Agency
Many mobile apps, online video streaming services and other digital platform-based products that Canadians enjoy are sold by businesses beyond our borders. These businesses have not previously been required to charge Canada’s sales tax, also known as GST/HST, when making sales in Canada. Canadian companies that supply similar products and services are already required to collect this tax. To level the playing field, the Government of Canada has introduced new measures to ensure Canada’s sales tax applies in a fair and effective manner to the growing digital economy. As a result, starting on July 1, 2021, Canadians may begin to see GST/HST charges when they make purchases from affected businesses.
The measures will affect businesses that provide the following:
- cross-border digital products and services, like video or music streaming services;
- platform-based short-term accommodation, like homestays or vacation rentals; and
- goods supplied through fulfillment warehouses in Canada.
Affected businesses will be required to register for, charge, collect and remit GST/HST on these products and services. Once registered, businesses will be listed on an online registry, which will be available on Canada.ca as of July 1, 2021.
You can learn more about the GST/HST digital economy measures by visiting GST/HST for digital economy businesses.