Facebook and Instagram break rank with other tech platforms, will charge sales tax in Canada


Facebook will become the first foreign-based technology giant to start charging sales tax on advertisements purchased through their physical offices in Canada—a move that could generate millions in revenue for governments and put pressure on other large technology companies, including Netflix, Google and Amazon.

For several years, many Canadian tech and media companies have urged the federal government to change the law that exempts foreign digital companies from charging sales tax but requires their domestic competitors to do so. Prime Minister Justin Trudeau said he wouldn’t alter the law during his 2015 election campaign; various senior ministers have reiterated that position over the past three years.

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