Digital services tax repealed

Status: Legislation repealed

The digital services tax (DST) was a 3% tax on certain revenue that large domestic and foreign businesses earned from engaging online users in Canada under certain conditions.

On March 26, 2026, legislation repealing the Digital Services Tax Act received Royal Assent. As a result, the tax and all related obligations under the Act no longer apply, and the Canada Revenue Agency (CRA) will refund all DST payments it received.

Under the Act, affected businesses were generally required to:

• register for a DST program account
• file an annual DST return
• pay any applicable DST owing

Businesses could designate an entity within its consolidated group to meet filing and payment requirements for other group members.

Refunds on paid amounts

If you filed a DST return and paid the tax on the Canadian digital services revenue you earned, the CRA will refund the amount you paid including interest. It will calculate interest at the rate generally applicable to corporate tax refunds from the date the CRA received the payment.

If a designated entity made payments for other group members, the CRA will pay the refund directly to the taxpayer that the payment is related to.

The CRA will pay refunds by direct deposit to taxpayers who are enrolled for direct deposit, otherwise the CRA will mail them a cheque. However, if your refund exceeds $25 million, the CRA will contact you to arrange payment.

DST accounts closed automatically

If your business registered for a DST program account, the CRA will automatically close the account. There is no action required from the business.

Get support for an issue

Businesses with questions related to digital services tax payments they previously submitted, refunds, or program accounts can contact the CRA.