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What Is Canada’s Digital Services Tax?

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30.06.2025

OTTAWA, CANADA - APRIL 30: A Canada Revenue Agency sign outside its National Headquarters building ... More in Ottawa, Ontario, Canada, on April 30, 2025 (Photo by Artur Widak/NurPhoto via Getty Images)

Canada’s digital services tax was supposed to take effect Monday morning — instead, it died in the middle of the night.

After years of legislative and diplomatic buildup, economic studies and Canadian insistence that this was about fairness in taxation — not trade provocation — Ottawa scrapped the tax mere hours before collections would have begun. The sudden reversal stemmed from President Trump’s declaration that the DST policy was, in fact, a “blatant attack” on the U.S. — and his threats of curtailing trade talks unless Canada took a step back.

So, in an increasingly familiar geopolitical dance, one........

© Forbes