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Canada rejects 5% GST on electronic services

  • GST
  • 29 September 2017 | Richard Asquith

Canada rejects 5% GST on electronic services

Canada has rejected introducing 5% federal Goods & Services Tax on electronic services to consumers such as: streaming films and music; online TV and radio; e-books, software and apps; subscriptions to member websites; and electronic journals and newspapers.  The biggest providers of these are non-resident, including Netflix, Amazon, Apple, Microsoft and Google.

The tax was proposed by a parliamentary committee, but vetoed this month by the ruling Liberal party on the basis that it had a tax lowering public mandate.

In recent years, the 28 EU states, Norway, Switzerland, South Africa, Australia, New Zealand, South Korea, Japan and more have all imposed local VAT on sales of digital services to their consumers.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.