Michaela Merz

Canada – Quebec – Tax obligation of 9,975% for non-resident providers of digital services as of 1st of September 2019

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Effective September 1, 2019, certain suppliers that reside outside Quebec and non-residents of Canada that are registered for Goods and Services Tax/Harmonized Sales Tax (GST/HST) who make supplies of corporeal moveable property, intangible personal property (IPP) and/or services to individual consumers in Quebec and certain operators of digital platforms may be required to be Quebec Sales Tax (QST) registrants.

This obligation has been in effect since January 1, 2019 for non-residents of Canada not registered for GST/HST purposes who make supplies of IPP and services to a customer in Quebec that is not registered for QST purposes.

Registration is required for vendors that exceed the threshold of C$30k (approx. USD 23k) in annual taxable supplies to individual consumers in Quebec. The QST applies to a range of electronic services including, but not limited to, streaming games, music, apps, films, e-books and e-journals.

For further information please contact Eric Paton
Email: eric.paton@pwc.com

Image source: Unsplash.com

One thought on “Canada – Quebec – Tax obligation of 9,975% for non-resident providers of digital services as of 1st of September 2019

  1. Pingback: Tax obligation of 9,975% for non-resident providers of digital services as of 1st of September 2019 - VATupdate

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