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Canada rescinds digital services tax to advance stalled US trade talks
CANADA, JUN 30 – Canada dropped its 3% digital services tax on U.S. tech firms, avoiding $2 billion in costs and enabling trade talks to resume with the U.S. by July 21, officials said.
- On June 30, 2025, Canada eliminated its digital services tax in an effort to help restart trade talks with the United States.
- The tax imposed a 3% charge on digital revenues generated in Canada that surpassed $20 million, targeting companies with global earnings above $1.1 billion, which led U.S. President Trump to halt trade discussions.
- The levy targeted U.S. technology firms like Amazon, Google, Meta, Uber, and Airbnb and was retroactive to revenues dating from January 1, 2022, escalating trade tensions.
- Mark Carney announced on Sunday that he and Trump agreed to resume negotiations aiming for a deal by July 21, 2025, following this month's G7 Summit in Kananaskis.
- With Canada withdrawing the tax, both countries expect stalled trade talks to progress and reduce economic conflict affecting technology and other sectors.
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551 Articles
ThePatriotLight - Ottawa Must Pass a Law Revoking Digital Service Tax Before Refunds Are Issued: CRA
ThePatriotLight - A sign outside the Canada Revenue Agency is seen in Ottawa, on May 10, 2021. The Canadian Press/Adrian WyldThe Canada Revenue Agency says taxpayers who already paid the now-defunct digital services tax will have to wait for Ottawa to pass new legislation before they can get their refund.Prime Minister Mark Carney announced late Sunday that, in a bid to restart trade negotiations with the United States, Canada was dropping the t…
Canada Caves on Digital Taxation
The Government of Canada recently announced that it will rescind its 3% Digital Services Tax (DST)—just one day before collections are set to begin on June 30. The tax had become a flashpoint in ongoing trade negotiations, with the threat of double taxation prompting Trump to withdraw from talks, motivating Canada to cave and scrap the discriminatory tax. The DST would have imposed a 3% tax on revenue derived from Canadian users through social m…
The gabella would have hit giants like Meta and Amazon, yielding at least 1.2 billion a year, to which Ottawa has renounced in exchange for the resumption of the negotiations on duties. EU Commissioner Sefcovic today in Washington.The Canadian government announced the withdrawal of the tax on digital services, in t...
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