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:
225
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
Qatar's Tax System: VAT & Electronic Invoicing
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Qatar is implementing a modern, transparent, and digitized tax system to align with a globalized economy. Main reforms include strengthening the General Tax Authority, preparing for a 5% VAT under the GCC VAT Framework Agreement, and exploring electronic invoicing. Qatar is shifting toward a modern, transparent, and digitized tax system to align with a globalized, less hydrocarbon-dependent econom... Read more
VAT & Promotions: Understanding Vouchers, Gifts, and Discounts in the UK
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
VAT treatment for business promotions is complex due to changes in EU and domestic legislation and case law. The main points are whether there is a supply and, if so, what the value of that supply is. The UK rules for face value vouchers (FVV) have been altered, with VAT due on the value of the voucher when issued. Single-purpose vouchers carry the right to receive only one type of goods or servic... Read more
Latvia Moves Towards Mandatory E-Invoicing: Consultation Now Open
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
The Latvian Cabinet is launching a public consultation on a draft regulation for mandatory electronic invoicing, outlining technical standards, transmission channels, and compliance timelines, with voluntary participation allowed for B2B transactions. A public consultation on a draft regulation outlining the steps for enforcing mandatory electronic invoicing in Latvia was launched by the Latvian C... Read more
USA: New York Passes Law Requiring Stores to Accept Cash
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
New York has passed a law requiring stores to accept cash, banning retailers from refusing it as payment. The aim is to protect access to basic goods for low-income, elderly, and unbanked residents in an increasingly cashless economy. The bill now awaits the governor’s signature. New York has passed a new law that requires stores to accept cash. The bill, approved by both chambers of the state leg... Read more
Malaysia Adopts PINT-MY Billing for E-Invoicing
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
The PINT-MY Billing Specification is Malaysia’s version of the Peppol e-invoice, adapted for SST and based on the UBL 2.1 XML format. It sets guidelines for B2B and B2G invoicing via the MyInvois platform, supporting automation and tax compliance. It includes defined business roles, main invoice fields, and tax tagging for SST (Sales and Service Tax), TTx (Tourism Tax), LVG (Low-Value Goods), and... Read more
Latvia: B2B E-Invoicing Mandate: New Timelines Approved
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
The Latvian Parliament adopted a revised draft law, No. 967/Lp14, setting new deadlines for mandatory e-invoice data reporting, domestic B2B transactions, and voluntary e-invoicing for small businesses. On June 5, 2025, the Budget and Finance (Tax) Committee rejected a proposal (Amendments to the Accounting Law No. 927/Lp14) to delay the B2B e-invoice mandate to January 1, 2027. Instead, a revised... Read more
Malaysia’s MyInvois E-Invoicing Update – Mid-2025
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
Malaysia is advancing its MyInvois e-invoicing system using a CTC model, requiring real-time invoice clearance and QR codes. The fourth rollout phase for businesses with RM1–5 million turnover (approx. €200,000 – €1,000,000) is delayed to January 2026, with each phase including a 6-month soft launch. Main updates include the PINT 1.2.0 standard with self-billing, new MyInvois 2.1 guidelines, and t... Read more