Canada: Deferral of filing by platform operators of GST/HST information returns for 2021

Platform operators not required to file GST/HST information returns for the 2021 calendar year.

Platform operators not required to file GST/HST information returns for the 2021

The Canada Revenue Agency (CRA) announced that it is deferring for platform operators the GST/HST* information reporting requirement for 2021 (i.e., the first calendar year for the measures).

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

There is a requirement for platform operators—both Canadian and foreign platform operators that facilitate supplies of qualifying goods or short-term accommodation situated in Canada through their electronic platforms—to file an annual information return. The information return is to be filed for each calendar year (in addition to compliance with new collection and remittance obligations).

However, the CRA recently announced, in updated "GST/HST for digital economy businesses" webpages, that the annual information return filing requirements are being deferred in an effort to help platform operators adjust to this new reporting rule. The CRA stated that the GST/HST information return reporting requirement is in effect for each calendar year starting in 2022. Accordingly, platform operators subject to these reporting rules will need to file their 2022 annual information return by 30 June 2023. The CRA stated that it will provide more information as to how to file the annual information returns in advance of the filing deadline.

The deferral for filing the 2021 annual information return by platform operators does not affect their collection and remittance obligations. It also does not affect storage service providers who are required to notify the CRA by 1 January 2022, that they supplied storage services as of 1 July 2021.

Read a December 2021 report prepared by the KPMG member firm in Canada

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.