Canada rescinded its 3% Digital Services Tax, effective 30 June 2025, after announcing the withdrawal on 26 March 2026. The tax had applied retroactively to income from 1 January 2022 and targeted companies with global revenues above €750 million or Canadian revenues above CAD 20 million. The legislation, Bill C‑59, received royal assent on 20 June 2024 and was introduced to address digital‑service taxation amid US trade concerns.
On 26 March 2026, the Canadian Finance Minister announced the withdrawal, effective 30 June 2025.
Companies with global revenues above €750 million or Canadian revenues above CAD 20 million were required to register and pay the 3% DST.
The DST applied retroactively to income from 1 January 2022.
Bill C‑59 received royal assent on 20 June 2024.
The first DST return covering Jan 2022 to Jun 2025 was due on 30 June 2025.
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VatCalc · about 1 month ago
British Columbia will broaden its Provincial Sales Tax (PST) to include a range of professional services from 1 October 2026, maintaining a 7% rate that, combined with the federal 5% GST, brings the total tax on most supplies to 12%. For architectural, engineering and geoscience services, PST will apply to only 30% of the purchase price. Service providers in the new scope must register for PST and prepare to charge, collect and remit the tax, with further administrative guidance to follow.
Troy Media · about 1 month ago
Canada’s federal government has announced a one‑time top‑up to the GST credit, rebranded as the Canada Groceries and Essentials Benefit, which will increase payments by 25 % for five years starting in July 2026. The benefit will extend to 500,000 new families, potentially helping up to 12.6 million Canadians, but eligibility thresholds are low, excluding many low‑income households. The article argues that these tweaks are insufficient and calls for a larger increase in the basic personal amount to provide broader relief.
Meyka · about 1 month ago
Canada’s federal government fast‑tracked Bill C‑19 on 14 February 2026, adding a one‑time spring top‑up equal to 50 % of the annual GST credit and raising the base credit by 25 % for five years. More than 12 million low‑income Canadians will receive the payment automatically via the CRA, with a family of four eligible for up to C$1,890 in 2026.
Globe and Mail · about 2 months ago
Canada Revenue Agency has confirmed that independent financial advisors will now need to collect and remit GST/HST on trailing commissions from mutual fund dealers, effective July 1, 2026. The rule applies to advisors whose taxable revenue from trailing commissions exceeds $30,000, while dealer employees remain exempt. The CRA’s notice clarifies that trailing commissions are no longer considered financial services for GST purposes.
Canadian Affairs · about 2 months ago
Canada’s Parliament fast‑tracked legislation to boost the GST credit over six years at a cost of $12.4 billion, targeting low‑ and moderate‑income households. The credit will rise 50 % in 2024 and then increase by 25 % each year from July 2025, with a family of four eligible for up to $1,890 in 2026. The editorial critiques the lack of funding plans and the long‑term impact on the deficit.
Canadian Accountant · about 2 months ago
This commentary highlights five significant Canadian GST/HST court decisions from 2025, covering topics from tobacco sales to insurance, medical services, optional term extensions, and Airbnb-listed condo sales. The rulings clarify exemption status, input tax credit eligibility, and the treatment of new supplies, providing guidance for tax planning and compliance in 2026.
