Sellers of goods and digital products into Canada should be aware of several key changes to the sales tax treatment of goods or services sold to Canadian customers through online platforms. Effective July 1, 2021, new rules will apply with respect to the application of Canada’s goods and services tax / harmonized sales tax (“GST/HST”), in three key areas:
(1) Sales of certain digital products and services by non-resident vendors either directly or through an online marketplace.
(2) Sales of tangible goods by non-resident vendors (or online marketplaces) shipped / fulfilled from a Canadian warehouse or a place in Canada.
(3) Sales of short-term accommodation in Canada through a digital platform.
In addition to these GST/HST changes, new rules targeting digital sellers of goods and services have been announced or introduced in all Canadian provinces that have a separate, stand-alone provincial sales tax.
This course will provide a high-level overview of these rules and the practical implications for your clients.