The New Frontier of Digital Taxation
As the economy moves online, the government has introduced new ways to tax digital revenue.
GST/HST on Digital Products
Since 2021, all foreign digital sellers (like Netflix, Spotify, or Steam) must charge GST/HST to Canadian residents. This ensured a level playing field for Canadian competitors.
What Changed with the Digital Services Tax (DST)?
Canada announced a separate 3% DST for certain large digital businesses, but the federal government later rescinded the DST in 2025. This means there is currently no active DST charge being collected in Canada.
Does it affect your calculator results?
No. Your GST/HST calculation remains the same. GST/HST continues to be charged based on the province and place-of-supply rules.
Key Distinction
| Feature | GST/HST | DST | |---------|---------|-----| | Status | Active | Rescinded in 2025 | | Paid By | Consumer (on taxable sales) | N/A (not collected) | | Shown on Receipt | Yes | No | | Rate | 5% - 15% (province-dependent) | Previously proposed at 3% |
Understand more about digital business taxes in our E-commerce Guide →
Run the Canada GST/HST calculator for province-based totals →