The new rules for digital service providers outside Canada were announced in November 2020. These companies must now ensure their tax compliance with the new requirements as the deadline is shortly approaching and the rules will be officially in place by July 1st.
In the past foreign sellers of digital products or services to Canadian consumers did not have to collect and report GST which left local sellers with a disadvantage in terms of pricing. The new regulations are set in order to combat and rectify this discrepancy by creating a framework for fair competition while governing the operation of Canada’s digital economy.
Source GlobalVATcompliance
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