Quebec introduces sales tax on digital sales to consumers

30 April 2018

From 2019, Quebec will be the first Canadian province to introduce sales tax (QST) on sales made by non-resident providers of digital services to consumers residing in the province.

At present, non-resident businesses providing digital services in Quebec do not have to charge QST on their sales. However, in an effort to remove the unfair advantage that this gives to these companies over resident providers, the Quebec Revenue of Finance has confirmed it will implement QST on these types of supplies at a rate of 9.975% from 2019.

This will be subject to an annual registration threshold of C$30,000 and will be introduced in two stages:

• From 1 January 2019 for Canadian providers outside of Quebec.
• From 1 September 2019 for all other non-Canadian providers.

This new tax will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.