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New digital sales rules took effect from 1 July 2021 and generally apply when a foreign business sells the following to consumers in Canada:

1. Ìý

   •ÌýÌýÌýÌý Cross-border digital products and services.

2. Ìý

   •ÌýÌýÌýÌý Goods supplied through Canadian fulfilment warehouses.

3. Ìý

   •ÌýÌýÌýÌý Short-term accommodation through digital platforms.

Cross-border digital products and services (Canada)

Under the previous rules, foreign vendors with no physical presence in Canada who sell digital products or services to consumers in Canada were not generally required to collect GST/HST. Rather, it was up to Canadian resident consumers to self-assess and pay GST/HST to the CRA on the value of digital products or services consumed where required. By contrast, Canadian-established vendors who sell digital products and services have a requirement to charge GST/HST, which makes their products and services more expensive and less competitive.

To level the playing field, foreign-based online vendors and digital platform operators (ie online marketplaces) with no physical presence in Canada that exceed a CAD 30,000 registration threshold (in any single calendar quarter or in the last four consecutive calendar