By the end of November, the Department of Finance Canada posted a news release under the name of Supporting Canadians and Fighting COVID-19: Fall Economic Statement 2020. Besides discussing the impact of the virus among the health and jobs, it also goes through the economic and tax implications, specifically the Tax System for the Digital Economy.
Under existing regulations, foreign digital businesses do not need to charge GST/HST to their sell of goods or services to local Canadians. According to the government, this creates a big disadvantage to local businesses and undercuts competition, and at the same time puts the burden on Canadian customers to remit sales tax. In addition, the tax authorities could also use this tax money for different purposes.
Source: globalvatcompliance.com
Latest Posts in "Canada"
- Importer of Record to Share Joint Liability for Customs Duties and Taxes Starting January 2026
- Canadian House of Commons Considers Bill C-15 on Tax Measures and GST/HST Coupon Restrictions
- Canada Scraps Digital Services Tax in Budget Implementation Bill
- Canada’s 2025 Budget Introduces Reverse Charge to Combat GST Carousel Fraud in Telecom Sector
- Canada’s 2025 Budget Introduces GST/HST Reverse Charge to Combat Supply Chain Carousel Fraud
