- Registration Deadline: The deadline to register for Canada’s Digital Services Tax (DST) is approaching on January 31, 2025. Registration may be required even if no tax is payable under the Digital Services Tax Act (DSTA).
- Eligibility Criteria: The DSTA applies to large domestic and foreign businesses with global consolidated revenues of at least €750m and Canadian digital services revenue exceeding CA$20m. The tax rate is 3% on taxable Canadian digital services revenue exceeding CA$20m per year.
- Definition of Canadian Digital Services Revenue: This includes revenue derived from activities of persons in Canada, such as online advertising services viewed or interacted with by a person in Canada, regardless of the payer’s or payee’s location.
- Registration Requirements: Each entity in a consolidated group earning Canadian digital services revenue must register if the group meets the €750m global revenue threshold and earns more than CA$10m in Canadian digital services revenue. An election is available to designate one entity to report DST for the group, to be filed by June 30 of the following calendar year.
- Compliance and Deadlines:
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- Annual returns are due by June 30 of the following year.
- Designated entity elections must be filed by June 30 of the following year.
- Payments are due by June 30 of the following year, with electronic payment required for amounts CA$10,000 or more unless impractical.
- Registration information includes the business’s legal name, business number, incorporation details, addresses, and officer contact details.
Source EY
