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Canada’s E-Commerce Sales Tax Expansion to Miss Revenue Estimate

Feb. 18, 2021, 11:13 PM

Canada will collect far less revenue from applying sales tax to foreign e-commerce companies and will spend more in a crackdown on tax cheats than planned, a parliamentary watchdog said Thursday.

Changes to the Goods and Services Tax (GST), which will apply to fulfillment warehouses like Amazon.com Inc. and eBay Inc. starting July 1, will net Ottawa C$604 million ($476 million) over five years. That’s far below the C$1.55 billion in revenue the Department of Finance forecast in November, the Parliamentary Budget Officer said in an analysis.

The difference is because the Department of Finance is predicting ...