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

Quesnel ranked 8th most dangerous place in Canada

Although StatsCan data suggests crime rates are actually trending down in the city

Quesnel boxer storms through Portland

“Hurricane” Carter picks up an easy victory after some scheduling confusion

West Fraser to reduce sawmill production in Quesnel, Fraser Lake

The move will affect 75 employees in Quesnel, 60 in Fraser Lake

Roos lose heartbreaker to Stamps in OT

Gassoff scores three in back-and-forth affair

‘Targeted incident’ leads to death of Quesnel man

One man died of life-threatening injuries on Nov. 8

Throw a snowball to help kids at BC Children’s Hospital

Effort will raise money for sick kids over the holidays

128 people died of illicit drug overdoses in B.C. in September

The province is on track to record the same or more overdose deaths this year as last

Canada Post strike having ‘critical’ impact on retailers, eBay tells PM

Canada Post says it is now facing an unprecedented backlog of shipments, largely as a result of strikes

NASA wants Canadian boots on the moon as first step in deep space exploration

The U.S. is seeking broad international support for the next-generation space station to send into orbit a in 2021

B.C. Lions GM Ed Hervey has plan for busy off-season

The Lions’ season ended Sunday with a crushing 48-8 loss to the Hamilton Tiger-Cats in the East Division semifinal

Vancouver Island man survived for ‘days’ trapped in smashed truck

Duncan Moffat, 23, found by hunter by the side of the road near Sayward

Fundraising firefighters complete quest for B.C. Paralympian

The four Penticton residents raising money for Victoria Paralympian complete journey

PHOTOS: Hockey history in B.C. as Team India comes to play

Squad played its very first game in Canada on Tuesday against Surrey Falcons

B.C. man wanted in connection to domestic assault in Edmonton

Sterling Miles Booker has ‘ROCK’ and ‘ROLL’ tattooed on his hands

Most Read