Canada – Digital Services Tax is Repealed 

Canada has officially repealed the Digital Services Tax(DST) through the enactment of the Fiscal Budget Law 2026. On March 26, 2026, Bill C-15(Budget Act 2026), was adopted by the House of Commons. The enactment of Bill C-15 ends the Canadian Government’s “hopes” of raising additional tax revenue from tech giants. 

In June, the Canadian Government decided to suspend the DST Act after growing pressure from the US. The US Government put significant pressure on jurisdictions that introduced digital services taxes or similar levies to big tech companies, which are mostly US-based, claiming that these tax measures are “discriminatory”. 

After US-Canada talks, the Canadian government decided to suspend the effects of the DST Act, and with the enactment of Bill C-15, that suspension “evolved” into repeal. Practically speaking, the Canadian DST Act negatively affected Revenue’s budget. 

Taking into consideration that the Revenue Agency needs to make full refunds for the payments already received by responsible taxable persons, it is mandated to also pay interest on these payments. Alongside these refunds, it must repay all other “contributions” received by tech platforms that were paid as part of the duties under the DST Act.