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

B.C. Legions in need of young members to continue aiding veterans into the future

Lest we forget what thousands of men and women did to fight for Canada’s freedoms – but without new membership, many Legion chapters face dwindling numbers

Creston postal workers go on 24-hour strike

The Canadian Union of Postal Workers (CUPW) went on strike in Creston… Continue reading

Referendum: Parallels to healthy relationships

We need each other and need to learn to work together.

Thieves take advantage of local business

Local proprietor Denne-Lepage Ahlefeld of Denne Ahlefeld CGA located at 137 10th… Continue reading

Creston town council sworn in at inaugural meeting

Newcomers Arnold DeBoon and Ellen Tzakis were welcomed to Creston town council on Tuesday’s inaugural meeting.

Trudeau warns of dangers of nationalist leaders at historic armistice gathering

U.S. President Donald Trump in recent weeks described himself as a nationalist

Funding announcement promises to drive business innovation in B.C.

Minister is scheduled to make the announcement at the Penticton campus of Okanagan College

Ticats destroy Lions 48-8 in CFL East Division semifinal

Wally Buono’s last game as B.C. coach ends in disappointment

Olympic decision time for Calgarians in 2026 plebiscite

Calgary’s ‘88 legacy is considered among the most successful in Olympic Games history

Canadians mark Remembrance Day, 100 years since end of First World War

The sombre crowd stood in near-silence as it reflected on the battles that ended a century ago, and those that have come since

B.C. VIEWS: Seniors home worker discrimination finally ending

Health Minister Adrian Dix righting a serious wrong

Northern California fire officials begin agonizing search for dead

The death toll had hit 23 as of Saturday night

U.S. downs Canada 5-2 to win Four Nations Cup women’s hockey tournament

The last time Canada beat the U.S. in a tournament final was the 2014 Four Nations in Kamloops, B.C.

World leaders gather in Paris to mark 100 years since end of First World War

Emmanuel Macron told world leaders that nationalists threaten to erase the moral values a nation has by putting their own interests first

Most Read