Most foreign-based businesses who sell mobile apps, online video streaming services and other digital platform-based products are now required to charge Canada’s sales tax, commonly known as GST/HST, when making sales in Canada. This requirement started this July 2021.

So starting July 1, 2021, you may see GST/HST charges when you make purchases from affected businesses. Affected businesses will include:

  • Cross-border digital products and services, like video or music streaming services
  • Platform-based short-term accommodation, like homestays or vacation rentals and
  • Goods supplies through fulfillment warehouses in Canada.

These businesses will be required to register for, charge, collect and remit GST/HST on these products and services.