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Canada Québec sales tax digital services January 2019

The Canadian province of Québec is to become the first region to impose its sales tax, Québec Sales Tax (QST) on non-resident providers of e-services to its consumers. The current  Québec QST rate is 9.976%

Canada’s federal government will impose its 5% Goods and Services Tax from 1 July 2021.

QST on digital services by foreign providers

Québec is looking to bring digital services and providers of intellectual property to consumers into the tax net. There will be a QST registration threshold of C$30,000 per annum.  There is already a simplified QST registration portal available, and non-residents over the threshold should be QST registered by 1 January 2019. There will be no right to deduct local QST.

Non-resident providers will be required to capture at least two pieces of proof of residency in the province, including:

  • IP address
  • Billing address
  • Credit card or bank transfer address
  • Sim card or telephone number code

Canada sales tax on digital services

UPDATE: latest taxing plans by Canadian provinces:

British Columbia PST April 2021

Saskatchewan HST January 2019

Manitoba 7% PST December 2021

Check our global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.

North America VAT on digital services

Comments (click for details) Rate Implementation Date Threshold Comments
Canada 5% Jul 2021 C$30,000
Canada British Columbia 7% Apr 2021 C$10,000
Canada Manitoba 7% Dec 2021 B2C; accommodation sharing
Canada Quebec 9.98% Jan 2019 C$30,000
Canada Saskatchewan 6% Jan 2019 Nil for non-residents
Mexico 16% Jun 2020 Nil
United States Up to 10% 2018+ Varies by state

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