Canadians hoping for a refund on the now-cancelled Digital Services Tax (DST) will have to wait until Parliament officially repeals the measure, according to the Canada Revenue Agency (CRA).
In a surprise move announced late Sunday, Prime Minister Mark Carney declared that Canada would scrap the DST to revive stalled trade negotiations with the United States. The controversial tax was aimed at global tech giants such as Amazon, Uber, and Meta, with the first payments scheduled for July 1—potentially costing American firms billions.
Although the CRA had already collected some revenue from the DST before the government’s sudden reversal, it will not issue any refunds until a new law is passed. The agency did not reveal the total amount collected so far.
“Taxpayers will be refunded only after Parliament enacts legislation officially repealing the DST,” a CRA spokesperson confirmed. However, with MPs currently on summer break, any legislative change will have to wait until Parliament resumes.
In the meantime, the CRA has suspended the requirement to file DST returns and has paused any further collection activity related to the tax.