On 28 March 2023, Canada’s Deputy Prime Minister and Minister of Finance, Chrystia Freeland, tabled the 2023 federal budget. The budget proposed a significant GST/HST amendment to the definition of financial service in the Excise Tax Act (ETA) by introducing paragraph (r.6) in the exclusionary paragraphs (Proposed amendment) of the definition. Paragraph (r.6) operates to exclude the supply of certain services rendered by a “payment card network operator” from the definition of a “financial service,” resulting in such services being considered as a taxable supply and therefore subject to the GST/HST.
Source EY
