Canada has repealed its Digital Services Tax (DST) to facilitate trade negotiations with the United States. The DST, a 3% levy on digital services revenue exceeding $20 million from companies with global earnings over €750 million, was implemented in June 2024.
The tax targeted online marketplaces, social media platforms, digital advertising, and the sale or licensing of user data. It was applied retroactively to January 1, 2022, affecting major U.S. tech firms.
The repeal, announced on June 29, 2025, aims to support the resumption of negotiations toward a trade deal by July 21, 2025, following the suspension of trade talks by the U.S. President.