Canada: Digital services tax now in effect
Affected businesses will have to register with the CRA by January 31, 2025
Affected businesses will have to register with the CRA by January 31, 2025
Canada has enacted a new 3% digital services tax (DST) on certain online revenues earned effective January 1, 2022. Canada’s Governor in Council has now fixed the coming-into-force date for the DST as June 28, 2024, which was the final step to enact the new tax, after the measures received Royal Assent on June 20, 2024. The order fixing the coming-into-force date was published on July 3, 2024.
Affected businesses will have to register with the Canada Revenue Agency (CRA) by January 31, 2025, and file their first DST return and pay any related taxes by June 30, 2025, or else they could face penalties and interest.
Read a July 2024 report prepared by the KPMG member firm in Canada
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.