EXPE · 10-Q · 2026Q2 · Full report
Global Tax Regulatory Changes
Expedia Group, Inc. · 2026-08-06 · Importance 37 · Surprise 42 · In source text
Expedia Group identified increasing tax-revenue initiatives and more aggressive enforcement by domestic and international tax authorities, including digital services taxes. The company remained subject to tax inquiries and audits that could require pay-to-play prepayments before contesting assessments, creating potential liquidity pressure. Canada repealed its Digital Services Tax Act on March 26, 2026, retroactive to June 20, 2024, allowing Expedia Group to reverse $71 million of previously accrued Canadian DST liabilities for periods from January 1, 2022 through December 31, 2025.
Key facts
- During the six months ended June 30, 2026, we reversed $71 million of previously recognized Canadian digital services tax liabilities covering periods from January 1, 2022 through December 31, 2025 due to Canada repealing the Digital Services Tax Act on March 26, 2026 with retroactive effect to June 20, 2024. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | realized | +1.6% | During the six months ended June 30, 2026, we reversed $71 million of previously recognized Canadian digital services tax liabilities… |
| liability | positive | realized | +0.2% | During the six months ended June 30, 2026, we reversed $71 million of previously recognized Canadian digital services tax liabilities… |