Tax Updates: New GST/HST Regulations For Digital Economy Businesses
Post-covid era, when the digital economy skyrocketed because of increasing online shopping, the Canadian government levied regulations to balance their economic disruptions. They introduced new regulations for foreign sellers regarding GST/HST. Earlier, foreign sellers who had no physical presence could sell things without commissioning GST/HST to shoppers, that Canadian sellers retailing the same services or products had to reproach. This has severely impacted Canadian vendors as their MRP goes higher than the foreign vendors resulting in fewer sales and huge losses. Although, the new regulation is all set to scale down these issues and make foreign merchants subject to Goods and Sales Tax/Harmonized Sales Tax. The recent amendments exemplify the intentions of the Canadian council of establishing a framework for fair market competition and regulating the undertakings of the digital economy. Synopsis Of The New GST/HST Regulation The proposed GST/HST regulation typically app...