The local selling model, which took effect July 1, applies to ads sold by the company’s Canadian sales teams. The firm will now collect and remit tax on those sales, and report them to Canadian governments as part of its local subsidiary’s financials. Facebook declined to disclose how much of its Canadian ad revenue is generated by its in-country teams and would be subject to the new model. (The Logic)

Talking point: The change provides “more transparency to governments and policy makers who have called for greater visibility over the revenue generated by Facebook Canada,” head of public policy Kevin Chan said in a LinkedIn post. The company first signalled a move to the local selling model in some countries in December 2017, and originally estimated it would take effect in Canada in mid-2019. In March, Chan cited the COVID-19 pandemic and 2019 federal election as factors in the delay. The new model ultimately took effect the same day Facebook was required to start collecting and remitting sales tax on all ad sales to Canadian buyers, following the passage of Bill C-30 last week. Facebook spokesperson Meg Sinclair said the change is “unrelated” to the federal legislation, and “has been in the works globally for some time prior to [its] introduction.”