Sales tax now charged for Canadian customers

September 16, 2015 5.3k views

Does Digital Ocean have registered corporate office in Canada? If not, then why have they decided to start charging Canadian customers sales tax as of 2015-10-01?

  • So can we pay in Canadian pesos I mean dollars?

  • How will the tax charge be calculated? If it is charged in USD @ stated GST/HST %, Canadian customers will be overpaying on the tax.

  • Why is a US Corp collecting tax for the Canadian Government? Are you expanding to include Canadian Data Centres? Could you please let us know what law says that you must do this? Never heard of this before.

  • Even if they do get canadian data centres, why should I pay tax if my services are in the United States? This doesn't make any sense to me...

  • This doesn't make sense. Digital Ocean is incorporated in the US, why would a US corporation be collecting Canadian sales tax?

  • Nowhere in my profile does it say where I live... Must be a Paypal thing.

  • As a Canadian 🇨🇦 I noticed this and it concerns me as well.

  • Sure hope DigitalOcean has a registered GST number they will be including with every invoice, or I wont be paying it.

  • From the support area's search:

    VAT stands for “Value Added Tax.” We must bill EU customers this additional tax due to changes in EU policy in early 2015. See here for more information.

    If you are in the EU, VAT will appear on your invoice starting September 1, 2015.

    If you are a registered business, you may enter your VAT ID on your Billing page, and VAT will not be added to your bill. However, please note that registered business still must account for this tax manually.*"

    We may have the Queen on our money. But Canada is not EU.

  • DigitalOcean's term "Canadian customers" is rather ambiguous. Do you mean to say customers that used the Toronto Data Center will be charged GST? Also on that note, will the monthly fee then also be charged in CAD or USD?

  • You can't demand USD if you want to collect Canadian tax. You can't use PayPal data (payees's billing address included) as your base for taxation.

  • DO should provide option to be paid in a local currency of residence provided TO Digital Ocean, and not pull address from Paypal to which PayPal nor payee has consented for you to use for taxation purposes. Hopefully you will attend to these issues before actually sending out bills with taxes.

  • I just noticed this as well, first off, I prepaid from Paypal, using USD currency that I already had in that account, that was paid to me in USD.

    So why the hell am I paying GST off this? .. If Im paying from USD to USD. I don't see why I need to pay Canada... Hell I might not even spin up from Toronto.

3 Answers

Yes! We have opened up a subsidiary office in Canada. For more information regarding Canadian sales taxes, please see our Tax FAQ.

There's more news to come, so keep tuned on Twitter and our blog for future updates.

  • If DO starts charging HST on their bills in USD i'm gone.. Give us CAD pricing since this service is becoming increasingly expensive due to the exchange rate!

    Side note.. if there's more "news to follow" and there is new CAD pricing.. Don't freak out your customers by announcing the tax first!

  • It totally confused me when I got the email. Maybe you should have put this information in the email or the FAQ. Starting to charge tax all in a sudden with the obscure explanation like "according to Canadian laws" is not a good way to inform your customers. I was wondering: Why now? Anything changed?

    Also wondering about any plans for the CAD pricing.

  • You are charging HST in USD on the invoices.

    I'm sorry but this seems like a cash grab.

    There are no other US server companies that I use who charge USD and add Canadian HST to their invoices.

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