In this April 18, 2017, file photo, conference workers speak in front of a demo booth at Facebook’s annual F8 developer conference, in San Jose, Calif. Facebook and Instagram say it will charge goods and services taxes on online advertisements purchased through its Canadian operations. THE CANADIAN PRESS/AP/Noah Berger, File

Facebook, Instagram to charge GST on online ads by mid-2019

Facebook and Instagram will charge tax on online advertisements for their Canadian operations

Facebook and Instagram will charge the goods and services tax on online advertisements purchased through their Canadian operations, but other technology giants said they aren’t ready to follow suit just yet.

The U.S.-based social media networks said they decided to apply the taxes by mid-2019 in an effort to “provide more transparency to governments and policy makers around the world who have called for greater visibility over the revenue associated with locally supported sales in their countries.”

RELATED: Canadian government spending tens of millions on Facebook ads

The federal government has long faced pressure to force foreign online services to apply sales taxes to their work, but has shied away from such measures, despite its international trade committee urging Prime Minister Justin Trudeau to make online services pay the taxes so small- and medium-sized businesses don’t lose customers to larger firms based abroad.

The decision to charge the taxes could create a windfall for the federal government and bring it closer to the 2020 deadline it set with other G20 countries to develop an international tax plan to address companies that are based in one country but have the potential to pay taxes in another.

In the wake of Facebook and Instagram’s announcement, a spokesperson for Twitter Canada said it does not currently charge sales taxes on ads and a representative for Uber Canada said it already applies sales taxes on all of its rides and food delivery orders in the country.

Google referred The Canadian Press to statements the company made back in May indicating that it would comply with legislation, should the federal government create regulations to require the collection of such taxes on digital sales.

The company noted that it already plans to comply with similar legislation Quebec passed around its sales tax.

Meanwhile, streaming service Netflix said only that it “pays all taxes when required by law.”

Short-term rental company Airbnb previously asked the federal government for regulation around taxes.

RELATED: Facebook finds ‘sophisticated’ efforts to disrupt U.S. elections

“We think as a platform our hosts should pay taxes. I know people get shocked when we say that, but we do. We think we should be contributing,” Alex Dagg, Airbnb’s public policy manager in Canada, said in an interview.

“We just need to figure out what are the appropriate rules in place to do that and how can we facilitate that.”

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Group seeks support for overnight shelter program

Significant number of Ponoka locals are homeless or under-housed

Big lottery win for Maskwacis man

A man from Maskwacis saw some lucky numbers ring up the big… Continue reading

Ponoka town council concludes two-day budget deliberations

Council prepared to take pay cut to keep tax increase low

UPDATED: Williams has been located

RCMP looking for Darren Williams

Ponoka’s St. Augustine Queens hoping to add a provincial crown

Volleyball squad makes third appearance at provincial championship

Fashion Fridays: Holiday outfits on a budget

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

‘He listened:’ Alberta’s energy minister meets with federal counterpart in Calgary

Sonya Savage says her priority is dealing with the CN rail strike

Alberta premier dismisses concerns over firing of election commissioner

Jason Kenney’s government has been accused of rushing the legislation through by invoking time limits on debate

Alberta MLAs reject bill for health workers who refuse service based on moral beliefs

Bill would have meant workers could not be sued for refusing to provide services like abortions

Study finds microplastics in all remote Arctic beluga whales tested

Lead author Rhiannon Moore says she wasn’t expecting to see so many microplastics so far north

Millet gas station robbed, worker bear sprayed

Wetaskiwin RCMP Investigate Armed Robbery, Seek information and ID Suspect

Environmental group’s lawsuit seeks to quash ‘anti-Alberta’ inquiry

UCP launched inquiry into where Canadian environmental charities get their funding

Federal laws at heart of West’s anger up for debate, as Liberals begin outreach

Vancouver mayor to Trudeau’s western critics: ‘Get over yourselves’

Snowboard pioneer Jake Burton Carpenter dies at 65

He was diagnosed with testicular cancer in 2011

Most Read