Non-residents of Canada involved in the provision of goods and services to Canadians face new sales tax obligations, beginning 1 July 2021.
Affected businesses include the following:
- Non-resident businesses selling digital products and services to Canadian consumers;
- non-resident vendors selling goods that are delivered or made available in Canada to Canadian
consumers; - distribution platform operators (i.e., persons controlling the essential elements of a transaction
between a seller and a buyer) that facilitate sales described above; and - operators of platforms that facilitate the provision of short-term accommodation in Canada.
Where applicable, these new rules require non-residents to register with Canadian tax authorities by 1 July 2021, and to collect and remit Canadian sales taxes.
Source Taxand
