Canada taxes digital services and intangible property sold by non-resident vendors to consumers (B2C) based on where the customer is located. Once a certain revenue level is reached, these vendors need to register for GST/HST. The vendor takes care of the GST obligations if they sell directly to customers. However, if sales happen through an online platform, the platform might be the one responsible for collecting the tax. It's crucial for non-resident providers to understand their sales model, keep an eye on their revenue, and stay updated with federal and provincial tax rules to make sure they're compliant.
Canada Extends Destination-Based GST/HST to Digital Services
Public
Other countries
Author: Ljubica Blagojević
Category:
General subject related
Views:
25
Content accuracy validation date:
12.05.2025
Content accuracy validation time:
08:29h
Canada applies destination-based place-of-supply rules for digital services and intangible property provided by non-resident suppliers in B2C transactions. These suppliers must register for GST/HST once they reach the applicable revenue threshold, either under the simplified or normal GST scheme.
Important Points:
- Direct supplies by non-resident providers to Canadian consumers place the GST compliance obligation on the supplier.
- When services are provided via a digital platform, the platform may be considered the tax-responsible party, shifting the GST obligations accordingly.
- Registration is required when thresholds are met, and the responsibility depends on the supply structure (direct vs. platform-based).
Canada’s GST rules reflect a broader international trend of taxing cross-border digital services based on consumer location. Clear distinctions in tax responsibility—between the supplier and digital platform—are crucial for compliance. Non-resident providers should evaluate their distribution model, track Canadian turnover, and ensure proper registration and invoicing. Referencing flowcharts and official guides is advisable for navigating federal and provincial sales tax variations.
Other news from Other countries
Vietnam's New Invoice Regulations Take Effect June 1, 2025
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
Decree 70/2025/ND-CP revises invoice issuance timing for high-volume services and adds rules for insurance, lottery, casino, and prize-based electronic games. Starting June 1, 2025, business households with annual revenue ≥1 billion VND (38,454.14USD) and enterprises selling goods must use e-invoices from cash registers. Erroneous invoices are prohibited. Adjustments to Invoice Issuance Deadlines... Read more
VAT Refund in Mexico: Get Up to 16% VAT
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Mexico offers foreign tourists up to 16% VAT refunds on purchases at affiliated stores, with minimum purchase amount of $1,200 and payment methods of cash, credit, or debit card. When customers are visiting Mexico, they can get back up to 16% of the VAT (Value Added Tax) they pay on purchases at participating stores. To get this refund, there are a few things you need to keep in mind: You need... Read more
South Africa Updates VAT Rules for Foreign Digital Suppliers (April 2025)
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
South Africa’s new VAT rules (Regulations No. 5993, effective 1 April 2025) update the treatment of electronically supplied services by foreign digital providers. B2B-only suppliers no longer need to register for VAT, while B2C and mixed suppliers must register if their turnover exceeds the threshold. Intra-group digital services are VAT-exempt under specific conditions. The changes aim to moderni... Read more
Netherlands and EU's ViDA: New VAT Rules for Platforms in Accommodation & Transport
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
Under the EU’s ViDA initiative, new VAT rules from March 2025 make platforms in the accommodation and transport sectors liable for VAT on short-term stays (≤30 nights) and road transport, unless the supplier provides a valid VAT/OSS ID or qualifies under an SME scheme. B2C services are taxed where used, B2B where the recipient is based. Platforms must keep transaction records for 10 years. The rul... Read more
Understanding U.S. Sales Tax for Online Retailers
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
In 2024, U.S. ecommerce reached $1.192 trillion, with most online purchases involving taxable goods. Sales tax rates vary across more than 13,000 jurisdictions, and the applicable rate depends on state-specific sourcing rules, typically based on the shipping address, but sometimes the seller’s or billing address. Retailers must stay compliant with each state’s rules, including how shipping fees ar... Read more
Vietnam's New E-Invoicing Rules: What You Need to Know (Starting June 1, 2025)
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Vietnam's Decree 70/2025/ND-CP amends Decree 123/2020/ND-CP, enhancing e-invoicing for digital and cross-border businesses. It expands e-invoicing scope, sets issuance timelines, mandates invoice content and format, and requires businesses with over VND 1 billion(38483.80USD) revenue to use cash register e-invoices linked to tax authorities. Vietnam is updating its e-invoicing system through Decre... Read more