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GST/HST for digital economy businesses

Complete and file a return

New rules for digital economy businesses are in effect as of July 1, 2021.

The simplified return is being developed and is not currently available. This page will be updated once it becomes available.

You must complete and file a return to report your net tax for each reporting period.

Under the cross-border digital products and services or platform-based short-term accommodation, your reporting obligations depend on if you have registered for a simplified or normal GST/HST account.

Under supply of qualifying goods in Canada (also known as “qualifying tangible personal property supply”), your reporting obligations are based on the normal GST/HST reporting regime.

Reporting obligations under the simplified GST/HST

Filing period

Your reporting period is a calendar quarter. Your return for the reporting is required to be filed within one month after the end of the reporting period.

Filing period table
Reporting Period Due date of return for reporting period
January 1 to March 31 April 30
April 1 to June 30 July 31
July 1 to September 30 October 31
October 1 to December 31 January 31

Net tax calculation

Your net tax calculation for a reporting period generally only includes the GST/HST that is collected or that becomes collectible during the reporting period and certain net tax adjustments. You are not entitled to claim input tax credits for the GST/HST paid or payable on your business inputs, but you are able to claim certain net tax deductions.

Your simplified GST/HST return has fewer lines to complete than the normal GST/HST return.

Your net tax for each reporting period is calculated as the difference between the following two amounts (A-B) as follows:

A: Line 105 of the return

  • GST/HST that becomes collected or collectible on your digital supplies during the reporting period.
  • Amounts you recover as GST/HST debts during the reporting period for which you had claimed a bad debt adjustment.

B: Line 108 of the return

  • Amounts you may deduct such as for a GST/HST amount that you refund to a person, or credit or adjust in favour of a person, in relation to excess tax charged or collected, subsequent reductions of consideration, and amounts you may deduct for uncollectable GST/HST you write off-off as a bad debt.

If the above net tax calculation results in a positive amount, that is the amount of net tax that you must report in your return and remit to us. If the calculation results in a negative amount, that is the amount of the net tax refund that you can claim in your return.

Rebates

Line 111 of the return

You can enter the amount of certain GST/HST rebates that you are claiming.

How to file your return

You are required to file your return electronically, and you can do so using the GST/HST NETFILE online service or the Represent a Client online service.

You are also able to apply for authorization to determine your net tax for a reporting period in a qualifying foreign currency. For additional information go to Pay (remit) the tax you collected.

Reporting obligations under the normal GST/HST

For information about reporting GST/HST under the normal GST/HST regime, including reporting periods and the net tax calculation, go to Complete and file a return.

Your net tax calculation under the supply of qualifying goods in Canada measure is determined based on the normal net tax calculation rules. However, under this measure, as a registered distribution platform operator you may also be eligible to claim input tax credits in respect of the tax paid on the importation of goods by non-registered vendors who import their goods into Canada to be sold through your platform. In order to so, you are required to obtain satisfactory evidence from the vendor that the tax in respect of the importation has been paid.

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