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ARTICLE · 22 APRIL 2021

2021 Federal Budget: Commodity Tax Measures

Stikeman Elliott LLP
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On April 19, 2021, the Government of Canada unveiled its first official budget in two years ("Budget 2021") and announced certain important commodity tax measures.

CanadaTax
Jean-Guillaume Shooner
Jean-Guillaume Shooner
Vanessa Clusiau
Vanessa Clusiau
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On April 19, 2021, the Government of Canada unveiled its first official budget in two years ("Budget 2021") and announced certain important commodity tax measures. Budget 2021 includes proposed amendments to past proposals, as well as some completely new rules.

The highlights of Budget 2021 from a commodity tax standpoint are set out below.

1. Application of the GST/HST to E-commerce

In its 2020 Fall Economic Statement, the federal government announced (1) the implementation of a new and parallel mandatory GST/HST registration system for certain non-resident vendors, (2) the application of the GST/HST with respect to goods supplied through fulfillment warehouses in Canada, and (3) the application of the GST/HST on supplies of short-term rental accommodation facilitated through a digital platform. Starting July 1, 2021:

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