Canadá

GST / HST exemption for crypto mining Canada has announced that income for mining and forging of digital currencies will no longer be subject to the 5% GST / HST.  

Quebec sales tax on digital services for non-residents In what is a first amongst all Canadian provinces, Quebec will now start to impose its local tax, the Quebec Sales tax (QST) on non-resident digital providers of services to its customers. Other taxes deployed in other Canadian provinces are yet to follow suit.    The QST rate is currently set as 9.976%.   Canada is a compliant territory for Tungsten Network and we will follow e-invoicing developments in the country.     

Proposed tax rate reduction for zero-emission technology manufacturers In the federal budget in Canada, there is a proposal for a temporary reduction in corporate income tax for any entities that qualify as zero-emission technology manufacturers. This is currently being discussed, and draft legislation to this effect has already been included in a package of draft legislative proposals on 4 February 2022 by the Department of Finance.

New Digital Tax Act Canada’s department of Finance has released a draft of the Digital Services Tax Act (DSTA). This Act covers a wide array of entities- both residents and non-residents who engage with online users in Canada. The tax is proposed to be set at 3%, and it is expected that this will become payable in 2024, in respect of revenues earned from January 2022. As this is a draft only, dates are provisional, and we can expect more concrete information in the coming months.

GST / HST tax changes

From 1 July 2021, Canada’s GST / HST rules have changed around how tax is applied to online sales from non-resident digital businesses. These changes were implemented as GST / HST was often not being collected on online purchases from non-resident vendors.

Therefore, from 1^st July 2021, any foreign suppliers of digital services to consumers based in Canada will be required to register for GST / HST and to collect and remit any tax to the Canada Revenue Agency (CRA).