Overview

• Canada scrapped its 3 percent digital services tax on June 30 to bring the United States back to the negotiating table under a July 21 trade deal deadline.
• The Canada Revenue Agency confirmed it collected some retroactive revenue since 2022 but cannot issue refunds until Parliament formally repeals the levy, with MPs returning on Sept. 15.
• CRA waived the requirement for companies to file DST returns ahead of the June 30 deadline and will halt any related payments until a repeal bill is passed.
• President Trump threatened Section 301 tariffs over the DST and retains the option to impose punitive measures if negotiations falter.
• Canada’s reversal underscores how unilateral digital taxes have become leverage in stalled OECD talks on global tech taxation.