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Canada’s digital tax, the digital services tax aimed at big tech companies, was cancelled. The government announced on 29 June 2025 that it would rescind it, and payments already made were to be refunded. What you might still pay is ordinary GST/HST on digital subscriptions bought from abroad. “Digital tax” can mean either, so we cover both, and we assume you’re in Canada.
What happened to the digital services tax?
It targeted large technology companies earning money from Canadian users, and a payment was due 30 June 2025. The Department of Finance said that collection would be halted and that legislation would follow to repeal the act.
A later letter from the Minister of Finance to affected companies went further. It committed to a retroactive repeal, and said any payments made to the CRA would be refunded with interest. Reports say Parliament has since passed the repeal, but we didn’t confirm the final legislative step on an official page, so check the Justice Laws site if it matters to you.
For an ordinary person there was never a line on a tax return for it. The tax fell on the companies.
Do you pay tax on Netflix and app subscriptions?
Yes, in most cases. When a foreign company sells digital products or services to someone in Canada who isn’t a GST/HST registrant, the CRA rules require GST/HST to be charged at the rate for that person’s province. Here are the rates the CRA page gives.
| Where you live | Rate charged |
|---|---|
| Alberta, British Columbia, Manitoba, Saskatchewan, Yukon, Northwest Territories, Nunavut, Quebec | 5% GST |
| Ontario | 13% HST |
| Nova Scotia | 14% HST |
| New Brunswick, Newfoundland and Labrador, Prince Edward Island | 15% HST |
Those are the federal amounts only. Provincial sales tax in places like British Columbia, Manitoba and Saskatchewan, and Quebec’s QST, are separate systems, and the CRA page we used doesn’t cover them. So a bill in those provinces may show more than the table.
What does that look like on a $20 subscription?
In Ontario, a $20 monthly plan carries $2.60 of HST, so you pay $22.60. The GST/HST calculator shows it. Move to Nova Scotia and the tax becomes $2.80, for a total of $22.80.
Already have a total and want the pre-tax price? The HST reverse calculator works backwards from what your card was charged.
Over a year, $2.60 a month comes to $31.20 in Ontario. Small on its own, though five or six subscriptions add up, and nobody notices because it’s buried in each bill.
How does a vendor know which province you’re in?
The CRA tells vendors to look at things like your billing address, payment details and IP address. Two or more Canadian indicators, with fewer than two foreign ones, point to a Canadian customer. The same logic then picks the province. If your bill shows the wrong province’s rate, message the seller.
Does any of this matter if you run a business?
It can. If you’re a GST/HST registrant, the rules for foreign digital suppliers are different from the consumer case above, and the CRA has a separate set of pages on the digital economy. We didn’t confirm the business side in enough detail to summarize it, so read those pages. For the income side of a small business, the corporate tax calculator gives an estimate, and we’d treat any small business rate it shows as approximate.
Selling digital products yourself changes the picture too. Add up the numbers before assuming you’re small enough to be exempt.
Common mistakes with digital tax
People expect a separate “digital tax” line on an invoice. There isn’t one. What you see is ordinary GST/HST, sometimes labelled with the province.
Another mistake is treating the cancelled tax as something you can claim back. Refunds under the Minister’s letter go to the companies that paid it, and there’s no personal claim.
Where do the numbers come from?
The announcement and the repeal commitment come from Department of Finance Canada, in its news release of 29 June 2025 and the Minister’s letter to taxpayers. The GST/HST rates and the rules for locating customers come from the CRA page on cross-border digital products or services. Example figures come from our GST/HST calculator. We haven’t verified provincial sales taxes. This website has no connection with the CRA or any other government body.
Frequently asked questions
Is Canada's digital services tax still in force?
The government announced on 29 June 2025 that it would rescind it, and later promised a retroactive repeal. We didn't confirm the final legislative step.
Did the digital services tax affect me directly?
No. It was charged to very large companies, not to individuals.
Do I pay GST/HST on foreign streaming and apps?
Generally yes. Non-resident vendors must charge it at your province's rate when you aren't a GST/HST registrant.
What rate applies in Ontario?
13% HST. A $20 subscription carries $2.60, so you pay $22.60.
How does a vendor decide where I live?
It weighs indicators such as billing address, payment information and IP address, per the CRA page.
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.