The fee, introduced on 1 October 2024, applied to Google Ads and YouTube reservations to cover compliance costs under Bill C-69, which targeted large digital companies.
Google has announced that it is scrapping its 2.5% “Canada DST Fee” on advertisements following Canada’s decision to repeal the Digital Services Tax (DST).
The fee, introduced on 1 October 2024, applied to Google Ads and YouTube reservations to cover compliance costs under Bill C-69, which targeted large digital companies.
As of 1 July 2025, the fee has been eliminated, and Google will issue full refunds for previously collected fees once the repeal is officially enacted. The company welcomed the Canadian government’s commitment to rescind the tax and confirmed its alignment with the Canada Revenue Agency’s recent updates.
This follows Canada’s finance ministry’s announcement of the cancellation of a planned 3% digital services tax on US tech firms on 29 June 2025. The decision, made just before the tax’s implementation, aimed to revive stalled trade negotiations between Canadian Prime Minister Mark Carney and US President Donald Trump.
The Government of Canada has introduced the digital services tax (DST). The Digital Services Tax Act received royal assent on 20 June 2024 and came into force on 28 June 2024. The tax targeted large digital companies with global earnings of at least EUR 750 million and Canadian digital services revenue of CAD 20 million, focusing on online marketplaces, social media, the sale of user data, and digital advertising.
On 29 June 2025, the Government announced its intention to rescind the digital services tax (DST). The requirement to file a DST return by 30 June 2025, under the current provisions of the Digital Services Tax Act has been delayed by the Canada Revenue Agency (CRA) until the Act is rescinded. The CRA will also waive or cancel any penalties on late-filed DST returns, as well as any interest on DST-related debt. As such, the CRA will not require businesses to file a DST return or pay any DST-related amounts.
If legislation to rescind the Act is tabled in Parliament and receives royal assent, those who have already paid will have their payments returned to them.
