Canada is to tax cross-border digital services, effective from July 2021. Consequently, non-resident businesses providing digital services to customers in Canada will have to start charging sales tax. Many digital vendors will now have to register for GST/HST in Canada.
Up to now, only digital services businesses with local operations have had to charge customers sales tax, providing a potential advantage to non-resident businesses. The new measure aims to level the playing field for resident and non-resident providers of digital services.
Source: vatglobal.com
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