New rules for the taxation of digital supplies in Canada (Webinar)

May 17, 2021

Proposed new rules for GST/HST were introduced in the Fall Economic Statement 2020, with some changes to these rules provided in the recent federal budget. The fact that the rules are being implemented on July 1 is creating some urgency for suppliers and operators of digital platforms.

Much of the focus is on the responsibilities of distribution platform operators, who are defined broadly, but are primarily digital operators who control or set the essential elements of the transaction between the supplier and the purchaser. Under the new rules, these operators will need to determine whether suppliers and purchases are GST registrants, and to apply the appropriate tax. Distribution platform operators will be largely dependent on suppliers to provide them with this information, and are protected by a “safe harbour” rule in cases where the supplier provides false information.

In their webinar, Alan Kenigsberg, Partner, and Roger Smith, Associate, Osler’s Tax Group discuss the differences between the old and new GST/HST regimes and the compliance requirements leading up to and beyond July 1. They also provide an overview of the similar regime for Quebec sales tax, and that of provincial sales tax programs in British Columbia, Saskatchewan and Manitoba.