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ARTICLE · 10 DECEMBER 2020

Fall Economic Statement 2020: GST/HST And Income Tax Changes For Digital Commerce

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On November 30, the Department of Finance released the Fall Economic Statement 2020 (Fall Economic Statement) that includes proposed changes to the GST/HST and the corporate tax

CanadaTax
John Tobin
John Tobin
Richard Johnson
Richard Johnson
Samantha Holloway
Samantha Holloway
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On November 30, the Department of Finance released the Fall Economic Statement 2020 (Fall Economic Statement) that includes proposed changes to the GST/HST and the corporate tax treatment of digital commerce. In this bulletin, we explain these proposed changes.

What you need to know

  • GST/HST on cross-border digital products and services: Non-resident digital platform operators and non-resident vendors that exceed a C$30,000 per year registration threshold will generally be required to register for and collect and remit GST/HST on taxable sales of digital products and services to Canadian consumers, effective July 1, 2021.
  • GST/HST on goods supplied through Canadian fulfillment warehouses:
    • Digital platform operators that exceed a C$30,000 per year registration threshold will be required to register for and collect and remit GST/HST on sales to Canadians of goods that are located in Canadian fulfillment warehouses that are facilitated for non-registered

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