Some foreign-based digital economy businesses will begin charging GST/HST on July 1, 2021

News release

June 30, 2021                                      Ottawa, Ontario                         Canada Revenue Agency

Many mobile apps, online video streaming services and other digital platform-based products that Canadians enjoy are sold by businesses beyond our borders. These businesses have not previously been required to charge Canada’s sales tax, also known as GST/HST, when making sales in Canada. Canadian companies that supply similar products and services are already required to collect this tax. To level the playing field, the Government of Canada has introduced new measures to ensure Canada’s sales tax applies in a fair and effective manner to the growing digital economy. As a result, starting on July 1, 2021, Canadians may begin to see GST/HST charges when they make purchases from affected businesses.

The measures will affect businesses that provide the following:

  • cross-border digital products and services, like video or music streaming services;
  • platform-based short-term accommodation, like homestays or vacation rentals; and
  • goods supplied through fulfillment warehouses in Canada.

Affected businesses will be required to register for, charge, collect and remit GST/HST on these products and services. Once registered, businesses will be listed on an online registry, which will be available on as of July 1, 2021.

You can learn more about the GST/HST digital economy measures by visiting GST/HST for digital economy businesses


“The Government of Canada is focused on building the middle class and building an economy that works for everyone. To do that, Canadians need a tax system that is fair. Canadian companies already collect GST/HST here at home when they make sales of digital products and services, and it is only fair that foreign businesses do the same. These measures are a necessary change to close the gap in the rules resulting from the growing digital economy. We will continue to work with the international community, provinces and stakeholders to make sure our tax system is fair for everyone.”

-The Honourable Diane Lebouthillier, Minister of National Revenue

Quick facts

  • On November 30, 2020, the Government of Canada announced a number of proposed GST/HST measures relating to the digital economy in its Fall Economic Statement. The measures were revised in Budget 2021 with some amendments following stakeholder consultations.

  • Canada’s digital economy measures are consistent with the Organisation for Economic Co-operation and Development’s recommendations on the digital economy and the actions taken by many other jurisdictions, including Quebec.

Associated links


Jeremy Bellefeuille
Director of Communications
Office of the Minister of National Revenue

Media Relations
Canada Revenue Agency

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