The Simplified GST/HST Regime for Digital Platforms & Your Canadian Business

If you run a Canadian business, and especially if you use online platforms like Google, Meta (Facebook/Instagram), Slack, Amazon, Atlassian, and dozens more - it’s worth understanding the somewhat recent changes to the GST/HST rules in the digital economy. These changes matter because they affect the amount of sales tax you may pay, whether you can recover it, and what you need to do to minimize unnecessary costs.

In April 2025 we reminded our clients to add their GST/HST registration number to their online accounts. By November, we issued a follow-up about the ‘simplified’ GST/HST regime, noting that many non-resident platforms had opted into, which changes how Canadian businesses can recover GST/HST. 

This blog fleshes out what it all means, why it matters, and what you should do.

What is the ‘Simplified’ GST/HST regime and why does it matter?

The CRA introduced new measures for the digital economy effective July 1, 2021. Among the key features:

• Non-resident vendors and non-resident digital platform operators can register under a simplified GST/HST regime if they supply digital products or services (or operate digital platforms) into Canada.
• One of the big practical consequences: If a vendor is registered under the simplified regime, then the GST/HST they charge to Canadian businesses (ie GST/HST registrants) is not eligible for input tax credit (ITC) recovery. In other words, you may pay the tax, but you can't claim it back.
• The simplified regime also means these non-resident vendors may stop collecting GST/HST entirely when dealing with Canadian businesses if the Canadian business provides a valid GST/HST registration number to them in their online account.
• Why it matters: if your business receives invoices from such platforms and they charge GST/HST, you might end up paying tax that you cannot recover, unless you ensure the vendor recognises your GST/HST registration number and corrects the way the invoice is treated (i.e. removing the GST/HST).

What the initial announcement reminded us to do

Here's what we asked our clients to do:

• Check their online platform accounts (Google Ads, Facebook/Instagram, Slack, etc.) and enter your GST/HST registration number in the billing/account profile settings.
• Why? Because once they do that, many platforms will stop charging GST/HST on their recurring transactions, which means fewer tax-related complications and fewer wasted ITC claims.
• If they did make changes, they let us know so we could ensure their bookkeeping and tax treatment reflect the correct tax status.

What the second announcement was for

In November we issued a follow-up with more urgency because:

• Many major non-resident online platforms (such as Google, Meta, Slack, Amazon, etc) have specifically opted into the simplified GST/HST registration regime under the digital-economy rules.
• Since they're under the simplified regime:
  
  • If they charge businesses GST/HST, and they are a GST/HST registrant business in Canada, they cannot claim an ITC for that tax.
  • If businesses provide their GST/HST number to the platform and they no longer charge GST/HST, businesses avoid paying unrecoverable tax.
• In a nutshell, if you're being charged GST/HST by these kinds of vendors, and you're a GST/HST-registered Canadian business, you're at risk of over-paying tax that you cannot recover.

Here are some helpful references:

• A list of notable vendors who may be in this category (Google LLC, Meta Platforms Technologies, LLC, Amazon Advertising LLC, Slack Technologies, Inc., etc) - please scroll to the bottom of the page
• CRA technical analysis for GST/HST for digital-economy businesses

Practical checklist for your business

Here's a simple checklist for business owners to stay on top of this and prevent tax leakage.

Step 1 - Review your vendor list

• Identify all online subscription platforms, advertising services, SaaS tools, marketplace platforms etc where you are paying recurring fees.
• Ask: Is the vendor non-resident? (i.e. outside Canada) Are they supplying digital services or platform services? If yes, they may fall into the simplified regime category.
• For each vendor, check if they're registered in the CRA simplified GST/HST registry. You can use the CRA lookup list.
  

Step 2 - Check account billing settings

• For each platform: Go to billing/account settings, add or update your 9-digit GST/HST registration number (the one you have on file with the CRA).
• If you already did this earlier, double-check it's still valid, and that the vendor has noted the registration.
• Keep a record (screenshot or memo) of when you updated the profile and what the vendor's billing settings show (GST/HST being charged or not).

Step 3 - Monitor invoices & payments

• For all invoices after you've provided your GST/HST number:
  
  • Check if the vendor stopped charging GST/HST
  • If they continue to charge GST/HST even though you provided your number, then your business may be paying tax you cannot recover.
• If GST/HST is charged by a vendor registered under the simplified regime, you generally cannot claim an ITC for that tax. Confirm with your bookkeeper.

Step 4 - Coordinate with bookkeeping/tax team

• Let us (or your finance team) know: “I have updated my vendor list, GST/HST numbers, and we want to ensure no unrecoverable tax is being paid.”
• We'll then monitor vendor invoices for you and raise a flag if we see continuing GST/HST charges where they shouldn't occur.
• Maintain documentation: date you updated profile, vendor response (if any), invoice trail showing tax status.

Step 5 - Ongoing review

• At least annually (or when you add new vendors/platforms), repeat Steps 1-4
• Keep abreast of any vendor emails notifying you that they are now under the simplified regime (many platforms have been emailing about this).
• Ensure your internal system (e.g. your purchase ledger, your recurring-fee tracker) flags any GST/HST charges from non-resident vendors.

Why this matters for you

• Cost control: By providing your GST/HST number and ensuring platforms stop charging GST/HST, you avoid paying tax that you cannot recover.
• Credit/recovery risk: If a vendor under the simplified regime charges GST/HST and you pay it, you likely can't claim that tax back. That's a wasted cost.
• Systems and controls: Having a clean system (tracking vendor registration, billing tax status, regular reviews) means you spend more time on strategy and growth, and less on “tax leakage”.
• Peace of mind: As a company that values operational clarity, ensuring you're aligned with tax rules reduces the risk of surprises or audit-issues down the road.

Common questions & quick answers

Q: If a vendor stops charging GST/HST after I provide my GST/HST number, does that mean I can claim an ITC on their previous bills?
A: Unfortunately, no. If the vendor is under the simplified regime and was charging GST/HST, you likely cannot claim ITCs for past invoices unless the vendor reimburses the tax. This is because the simplified regime provides that the tax paid is not eligible for ITCs.

Q: What if a vendor still charges GST/HST after I gave them my number? What should I do?
A: Contact the vendor, ask them to update their billing to stop charging GST/HST (since you're a Canada-registered business). If nothing changes, escalate it via your finance/bookkeeping team and make sure they can flag it for you.

Q: Does this only apply to large platforms (Google, Meta, etc)?
A: No - the regime applies broadly to non-resident vendors and platform operators in the digital economy supplying to Canadian recipients who have registered for the Simplified GST/HST regime. But yes, many of the well-known platforms are part of the list, which is why the risk is prominent. 

Q: I'm a Canadian business paying subscriptions to a Canadian-resident vendor - do I need to worry?
A: Less so for the simplified regime issue, because simplified registration is aimed at non-resident suppliers in the digital economy. But you still need to ensure the tax treatment is correct, and that you're capturing the right ITCs.

Final thoughts

Ensuring your vendor-tax treatment is correct may not sound glamorous, but it matters. When you're scaling, when you're outsourcing, when you're using multiple online platforms, these seemingly small details add up.

It’s worth taking an hour to review your online subscriptions and confirm this step is done. If your bookkeeping is handled by our team, we’re already monitoring many of these vendors, but it always helps to keep us in the loop whenever you update your accounts.

Tax rules like these can feel technical, but they’re really about protecting your business from avoidable costs - the kind that slip through unnoticed. Staying proactive with details like this is part of running a financially mature business, and it’s often these changes that make the biggest difference over time.