Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
News

Facebook said it wanted to start collecting sales tax across Canada by mid-2019. It hasn’t

Facebook is not collecting sales tax on advertisements purchased through its physical offices in Canada, despite saying it expected to begin doing so by mid-2019. Fifteen months later, it is doing so only in Quebec and Saskatchewan, and won’t provide a timeline for when its cross-country tax-collection efforts will begin. 

News

Facebook said it wanted to start collecting sales tax across Canada by mid-2019. It hasn’t

By Zane Schwartz
Facebook's corporate headquarters location in Menlo Park, Calif. in March 2018. Photo: Josh Edelson/AFP via Getty Images
Oct 21, 2020
A A
A Small A Medium A Large
Share

Gift

Share

Facebook is not collecting sales tax on advertisements purchased through its physical offices in Canada, despite saying it expected to begin doing so by mid-2019. Fifteen months later, it is doing so only in Quebec and Saskatchewan, and won’t provide a timeline for when its cross-country tax-collection efforts will begin. 

“We’ve experienced delays partly due to COVID and other urgent priorities, like providing grants and training for small businesses hit hard by the pandemic, as well as prioritizing the launch of Facebook Shops,” said spokesperson Meg Sinclair. Facebook Shops launched in May. The pandemic had widespread effects in Canada starting in March, nine months after Facebook’s original stated goal. 

The Logic reported in August 2018 that Facebook wanted to start collecting sales tax in Canada. “Our move to the local selling model should be in place globally by mid-2019,” Sinclair said at the time. “This is a significant undertaking with different laws in each country, so our primary focus is making sure we get this right.”

Talking Point

In 2018, Facebook said it should be ready to start collecting tax on ad sales in Canada by the middle of the following year. More than a year past that target, it is only collecting tax in the two provinces that mandate it by law. The delay has come as the federal government has grown increasingly bullish on regulating tech firms, saying it will require them to collect sales tax and tax their Canadian income.

At the time, it was facing pressure from Canadian tech and media companies, which wanted the federal government to change the law that exempts foreign tech firms from charging sales tax while requiring their domestic competitors to do so. Facebook broke ranks with other Big Tech companies when it said it would start collecting tax. At the time, Google, Netflix, Airbnb and Spotify all said they’d start doing so only if Canada’s governments required them to. 

The two provinces in which Facebook has begun collecting sales tax—Quebec and Saskatchewan—are the two that have passed laws requiring foreign tech firms to do so. 

Facebook declined to share how much money it’s collected in sales tax in Canada, or to provide a timeline for when it would collect tax nationwide. “Mid-2019 was a goal we were hoping to reach, it was not a firm commitment,” said Sinclair. “Our primary focus is making sure we get this right, even if that takes longer than initially planned.” 

The federal government has grown increasingly bullish on regulating tech firms in the last two years. 

In 2019, the Liberals campaigned on a three per cent tax on the income of tech giants doing business in Canada. After their election, the finance minister’s mandate letter identified as a top priority ensuring “international digital corporations whose products are consumed in Canada collect and remit the same level of sales tax as Canadian digital corporations.” 

Finance Minister Chrystia Freeland’s office didn’t respond to The Logic’s questions on the policy’s implementation. “The government is committed to ensuring that everyone pays their fair share of tax so that it continues to have the resources needed to invest in people and to help our economy weather the COVID-19 pandemic,” said Finance Canada spokesperson Anna Arneson. “That includes ensuring that companies in all sectors, including digital enterprises, pay their fair share in respect to their activity in Canada.”

It’s not just the Liberals who are looking to tax tech giants. Earlier this month, NDP leader Jagmeet Singh, whose party has propped up the minority Liberal government by voting with them in the House of Commons, called for a new tax on excess profits that companies like Amazon made during the pandemic, as well as generally higher taxes on “web giants.”

Gift the full article

The Conservatives are also looking for foreign tech giants to collect sales tax. 

“I find it perplexing that when the government wants to reach into Canadians’ pockets with a new tax, they figure out how to do it quickly, but when it’s about making sure foreign tech giants pay their fair share, they drag their feet,” said MP James Cumming, Conservative shadow minister for innovation.

“This is a competitiveness issue. Canadian businesses are paying higher taxes while foreign tech giants are not, and the longer this goes on, the worse it is for Canadian companies.” 

#Facebook

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Photo: Josh Edelson/AFP via Getty Images

Most Popular This Week

Andrew Forde, wearing a beige tweed blazer, black slacks and a white sweater, speaks on a stage at the Elevate conference in Toronto with three large blue screens in the backdrop. One screen displays the session topic, AI, another displays the logos for sponsors KPMG and Google, and a third screen depicts a photo of a stop sign covered in stickers. The stop-sign photo is labelled, “Stickers that beat supercomputers.”
News

KPMG’s AI whisperer says some Bay Street firms are falling into a productivity trap

By Anita Balakrishnan
The Big Read

ApplyBoard faces a reckoning as Canada’s immigration boom turns into a bust

By Claire Brownell and David Reevely
A shot of Anthony Hu in a semi-dark office, with his face illuminated by two computer screens.
The Big Read

Anthropic’s Mythos cracked software open like an egg. It’s just the beginning

By David Reevely
Susan Hawkins, chief executive officer of Payments Canada gestures with her hands as she speaks on stage in front of black screen at the Payments Canada Summit in Toronto.
Exclusive

Not all banks and fintechs will get access to the Real-Time Rail at launch

By Claire Brownell

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

Commentary

Carmichael: If an AI jobs apocalypse is coming, we’re not seeing it in the data

By Kevin Carmichael

Briefing

Anthropic says world needs option to slow AI development, as models learn to self-improve

By Murad Hemmadi   |   Jun 5, 2026

Ottawa taps the brakes on efforts to speed up project permitting

By Laura Osman   |   Jun 5, 2026

Kevin O’Leary scales back Wonder Valley Utah plans after objections from a key state legislator

By David Reevely   |   Jun 5, 2026

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

Canada’s surprise plan to buy Saab command jets leaves competitors seeking answers

By David Reevely   |   May 29, 2026
A closeup of a scale model of a jet covered in pixellated camouflage, with sensor equipment attached to the top of its fuselage. There are civilians and uniformed military personnel milling in the background.
Exclusive

Canada awards Ford $464M to make F-Series trucks in Ontario

By Murad Hemmadi, Anita Balakrishnan and Joanna Smith   |   May 7, 2026
Blurred red, white and black cars zoom down a street in front of Ford’s Oakville, Ont., assembly plant on Friday April 5, 2024.
News

European and Asian firms want a stake in Canada’s photonics factory, Joly says

By Murad Hemmadi   |   May 7, 2026
The Big Read

ApplyBoard faces a reckoning as Canada’s immigration boom turns into a bust

By Claire Brownell and David Reevely   |   May 27, 2026
Exclusive

RBC Insurance chief to depart in shakeup of key strategic role

By Chaimae Chouiekh and Anita Balakrishnan   |   May 27, 2026
Low-angle view of an RBC logo sign in front of a tall glass-and-concrete office tower, with surrounding skyscrapers visible in the background.
Exclusive

Shopify makes cuts to its operations team in latest round of layoffs

By Aleksandra Sagan   |   May 4, 2026
Tobias Lutke in a black shirt and grey jeans sitting on a couch, gesturing with both hands pinching the air as he speaks

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account