Canada: GST/HST rules for platform operators, scheduled effective 1 July 2021

Canada: GST/HST rules for platform operators

Canadian and foreign “e-platform operators” would be subject to new GST/HST* rules beginning 1 July 2021.

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*GST/HST = goods and services tax / harmonized sales tax
 

In particular, affected platform operators would need to:

  • Collect and digitally enter in their systems details about their clients and their clients’ customers to determine whether they must collect and remit GST/HST
  • Determine whether the sellers are registered for GST/HST
  • Determine whether they themselves must collect and remit GST or HST

Accordingly, the platform operators would first need to determine whether they would be subject to the new proposed GST/HST rules. The new definition “distribution platform operator” is very broad, and many platform operators could be subject to the new rules.

Affected platform operators need to carefully review the proposed GST/HST rules as announced 30 November 2020—read TaxNewsFlashto determine how the rules would apply for taxable supplies of intangible personal property (IPP), services and qualifying tangible personal property (goods) made through their platforms, and adjust their systems before the rules take effect on 1 July 2021.

Read a March 2021 report [PDF 192 KB] prepared by the KPMG member firm in Canada

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