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

A man wearing a dark shirt is pictured against a brick wall. He is looking directly into the camera. with a serious facial expression.
The Big Read

How Sheldon McCormick brought Communitech back from the brink

By Catherine McIntyre
A skyscraper on Bay Street in Toronto, viewed from street level looking up, with a traffic light and street sign in the foreground against a blue sky with clouds.
Analysis

Canada’s AI hiring boom has reached Bay Street’s top executives

By Chaimae Chouiekh
A shot from above of five people clustered around a table, all working on near-identical laptop computers. Their computer bags lie on the floor and some are wearing yellow lanyards.
News

1 in 3 professionals are using unauthorized AI on the job, global survey finds

By Anita Balakrishnan
A head-on shot of James Neufeld seated with others at a round table in a meeting room. Eleanor Olszewski is seated to his left. There's a laptop open in front of Neufeld.
News

For this Alberta tech firm, ‘Buy Canadian’ isn’t working as advertised

By David Reevely

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

A man sitting in a chair wearing a dark suit and jacket against a light background. The man is wearing glasses and has a serious facial expression.
Commentary

Carmichael: Was Chicken Little stirring panic, or just taking precautions?

By Kevin Carmichael

Briefing

Carney plans to discuss US$135B defence bank with new U.K. prime minister

By Chaimae Chouiekh   |   Jun 26, 2026

B.C. nearing federal MOU of its own as talks continue on Alberta’s West Coast pipeline

By Meghan Potkins   |   Jun 26, 2026

Quebecor urges CRTC to block Corus restructuring as part of takeover push

By Laura Osman   |   Jun 26, 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

Analysis

It turns out Trump does need something from Canada—aluminum

By Joanna Smith   |   Jun 25, 2026
A close-up of a made-in-Canada stamp on the end of a cylindrical piece of raw aluminum.
Exclusive

Ssense has laid off photo and make-up teams and says AI will do much of their work

By Catherine McIntyre   |   Jun 22, 2026
News

Alberta to free up a huge amount of power to attract Big Tech and its data centres

By Meghan Potkins   |   Jun 24, 2026
A wide landscape shot of high-tension power lines over green and golden fields in rolling countryside.
News

Canada gets low returns from events like the World Cup. Ottawa wants to know why

By Laura Osman   |   Jun 19, 2026
A wide shot of the Vancouver skyline shot from the east, featuring the Science World geodesic dome painted as a FIFA 2026 World Cup soccer ball. B.C. Place stadium appears on the right side of the frame.
News

What makes a nuclear reactor Canadian? Billions of dollars ride on the answer

By David Reevely   |   Jun 23, 2026
A bowl-shaped structure surrounded by concrete barriers. A white sign with a blue Westinghouse logo is suspended across one side of the structure.
News

How a former Russian TV anchor ended up suing Canada’s go-to rocket company

By David Reevely   |   Jun 22, 2026
A shot across an expanse of low forest of a rocket launching into blue skies.

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