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

Lightning face league leader Airdrie on winning high

Sparks flew when Lightning and Thunder met

Understanding your credit score

Many things can make or break your score

Byemoor arena ready for skaters

Byemoor, Endiang, Big Valley news

Stettler Elementary donates to Red Cross

Funds to help victims of Hurricane Florence

VIDEO: Shoppers like self-checkout lanes at the grocery store, survey suggests

Grocery Experience National Survey Report suggests most grocery shoppers spend 32 minutes per visit

Ponoka’s Caleb Shimwell arrested after pursuit

Police allege that Shimwell rammed a police cruiser

731,000 Canadians going into debt to buy prescription drugs: UBC

Millennials and those without private coverage were more likely to borrow money

Pot users, investors need to be vigilant at Canada-U.S. border

U.S. authorities say anyone who admits to having used pot before it became legal could be barred

No deal in sight: Canada Post warns of delivery delays into January

Union holds fifth week of rotating strikes as both sides remain apart on contract negotiations

Police looking into two more incidents at private Toronto all-boys’ school

Police and the school have said two of the prior incidents involved an alleged sexual assault

Air force getting more planes but has no one to fly them, auditor warns

The report follows several years of criticism over the Trudeau government’s decision not to launch an immediate competition to replace the CF-18s.

Bolder action needed to reduce child poverty: Campaign 2000 report card

The report calls for the federal government to provide more funding to the provinces, territories and Indigenous communities to expand affordable, quality child care.

Most Read