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Digital Tax

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On November 30, 2020, Canada’s Minister of Finance announced, as part of the government’s Fall Economic Statement (available here), proposals to amend Canada’s GST/HST system with respect to non-residents, proposed to come into effect July 1, 2021 and to tax non-resident digital service providers. The government has invited comments on the GST/HST proposals (including draft legislation) by February 1, 2021. The GST/HST proposals are broadly in line with changes that have recently become effective or are proposed to come into effect at the provincial level, requiring non-residents to register for and collect provincial taxes. Such changes are generally designed to target the digital economy. This article provides a high-level overview of these changes.

The Baker McKenzie State and Local Tax (SALT) Subpractice Group is presenting a series of short webinars to keep members of the SALT community abreast of recent developments in these less than certain times. We hope you will attend so we can stay connected as we address these issues together. The next session in the series, Digital Tax Update, will take place on Wednesday, April 1 at 1:00 pm ET. If you would like to…