Canada cancelled its digital services tax. What was it and why did the U.S. hate it?
- On June 29, Canada rescinded its digital services tax just before the June 30 deadline to avoid U.S. retaliation and restart trade talks.
- Canada's digital services tax, a 3% levy on revenues over CA $20 million from Canadian users, was canceled hours before enforcement to avoid U.S. retaliation and restore trade talks.
- According to a CCIA study, retroactive charges could reach nearly $3 billion, impacting U.S. tech giants like Amazon, Google, Meta, Apple, Uber, and Airbnb with annual costs up to $2.3 billion.
- Canada rescinded its digital services tax at the last minute to avoid harsher U.S. tariffs and to bring Washington back to trade negotiations, preventing a deeper trade clash.
- Beyond Canada, G7 leaders aim to resolve DST disputes by July 9 amid uncertain prospects for a global minimum tax agreement, leaving national digital taxes in limbo.
29 Articles
29 Articles
"Digital services taxes are discriminatory, hinder innovation and harm consumers."
Is the ‘Google tax’ era coming to an end?
India removed its six per cent equalisation levy on digital advertising effective April 2025. Canada cancelled its three per cent digital services tax just before the first $2 billion in payments were due. Meanwhile, the Trump administration has reinitiated investigations into foreign digital tax regimes and EU laws, while the G7 and OECD push for a multilateral digital taxation framework
UK sticks with digital services tax despite Canada’s decision to row back after US pressure
The UK is currently planning to keep its digital services tax, a person familiar with the matter said, after Canadian prime minister Mark Carney scrapped their own levy to restart trade talks with US president Donald Trump's administration.

Canada ended its digital tax for Trump. Could others follow?
Canada has withdrawn a tax that could have reaped billions in revenue to bring Donald Trump back to the table. It raises the possibility that other taxes targeting big tech could be in the US president's sights next.
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