Digital giants will be taxed (and will have to collect GST); Part II fees waived for broadcasters

By Denis Carmel OTTAWA – Foreign-based vendors with no physical presence in Canada do not have to charge Canadians GST/HST on sales of digital products or services — like mobile apps, online video gaming (not to mention purchases within apps and games) and video and music streaming. Nor do they pay taxes on earnings from Canadian consumers. In today’s economic statement from the federal government, however, foreign-based vendors selling digital products or services to consumers in Canada (such as Netflix, Spotify and others) will be required to register for, collect and remit the GST/HST on their taxable sales to Canadian...