New GST/HST rules on digital sales

You may have received a flurry of emails in recent months from foreign businesses from whom you purchase e-commerce supplies informing you that your fees will be subject to GST/HST and PST in some cases. That’s because the CRA has announced new rules that apply to sales of e-commerce products into Canada effective July 1, 2021. Affected vendors are companies like Google, Facebook, Netflix, Squarespace, GoDaddy and many more.

While this may seem like a fee increase at first remember that GST/HST registrants, and QST registrants in Quebec, may be eligible to recoup their GST/HST and QST paid on supplies. That is to say you may be eligible to a refund of any increase to your e-commerce service fees from the federal or Quebec governments. Make sure that you inform your bookkeepers and accountants about changes to your fees with these vendors so that they can claim a refund of any applicable sales taxes on the appropriate filings.