Specifically, certain large businesses may be subject to the new DST on certain online revenues earned effective January 1, 2022. Canada’s Governor in Council has now fixed the coming-into-force date for the DST as June 28, 2024, which was the final step to enact the new tax, after the measures received Royal Assent on June 20, 2024. The order fixing the coming-into-force date was published on July 3, 2024.
In light of these changes, businesses should determine how they may be affected by the DST rules, including considering the accounting implications regarding their obligations under this new tax law. Affected businesses will also have to register with the CRA by January 31, 2025 and file their first DST return and pay any related taxes by June 30, 2025, or else they could face penalties and interest.
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