@wilsonharborsales wrote:
After reading the seller update and Canada’s new tax laws, it appears as though Canada is charging a 3% ‘Digital Services Tax’ on all revenue collected by digital platforms operating in Canada. The new DST tax, along with existing Carbon taxes, HST taxes on services rendered and high corporate taxes likely led to the cost cutting measures.
One way or another, these tax increases will be passed down to the Canadian consumer.
@wilsonharborsales
The DST started out at 2.5% in Oct 2024. Bumped to 3.0 in Jan 2025. It seems like at every turn we are being nickel and dimed in extra fees. They are like a tax on a tax. And as you noted they ALWAYS get passed on to the end user...us...even when it is stating they (ebay and others) are absorbing that fee. Very hard to believe. Hide it in a charge on something else.
The DST (Digital Service Tax) fee, effective October 1, 2024, will be set at 2.5% for ads served in Canada. Applied to corporations making 20 M in revenue during a calendar year. Its purpose is to help Google cover the costs associated with complying with the new tax legislation.
- Google's ad revenue in 2023 was $237.8–238 billion. This was a significant portion of Google's total revenue of $305.63 billion for the year.
- In the first quarter of 2024, Google's advertising revenue was $61.66 billion. This was part of a total revenue of $80.54 billion for the quarter.
Basically a VAT for the perk of promoting our listings to get supposedly additional eyes. And a way for users(us) to help alleviate any strain on large corporations bottom line.
