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Canadian PM rules out B2C digital services tax

  • GST
  • 12 August 2015 | Richard Asquith

Canadian PM rules out B2C digital services tax

The Canadian Prime Minister, Stephen Harper, has ruled out a B2C digital services tax if his Conservative Party wins reelection in the autumn.  Canadian GST is currently 5%, with an additional provincial tax on top which can take the total bill to 15%.

A number of countries have recently introduced VAT or other sales taxes on foreign providers of e-services (including: streaming video and music; apps; software; subscription to online journals; and membership fees to sites or dating website). South Africa levied 14% VAT on such digital services in 2014. South Korea just introduced 10% GST foreign digital service providers from July 2015. Japan is next, levying 8% Consumption Tax from 1 October 2015.

The European Union changed the country VAT rate rules on these taxable supplies at the begging of 2015. EU providers are now required to charge and remit the VAT of their consumers’ home countries.


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.