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Canada: Digital services tax now in effect

Affected businesses will have to register with the CRA by January 31, 2025

July 8, 2024

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

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