As of July 1, 2021, digital economy businesses, including digital platform operators, may have potential goods and services tax/harmonized sales tax (GST/HST) obligations under three proposed measures that were announced in the Fall Economic Statement 2020 by the Government of Canada and revised as announced on April 19 2021 following consultations with stakeholders. This means you may have new obligations, including registering, and charging and collecting the GST/HST.
The government expects that affected businesses and platform operators will comply with their obligations to register, collect and remit the GST/HST as set out under the new rules and legislative provisions to ensure that the GST/HST applies effectively and fairly to e-commerce transactions.
Where the affected businesses and platform operators show that they have taken reasonable measures but are unable to meet their new obligations for operational reasons, the CRA will take a practical approach to compliance and exercise discretion in administering these measures during a 12-month transition period, starting July 1, 2021.
To read full notice, click here.
Source: Canada Revenue Agency
