EXPE · 10-Q · 2026Q3 · Full report

Global Tax Regulatory Changes

Expedia Group, Inc. · 2026-11-05 · Importance 30 · Surprise 42

On March 26, 2026, Canada enacted legislation repealing the Digital Services Tax Act retroactively to June 20, 2024. Expedia reversed $71 million of previously accrued Canadian digital services tax liabilities for in-scope periods from January 1, 2022 through December 31, 2025. As of September 30, 2026, the company no longer had an obligation related to the Canadian DST.

Key facts

• Expedia Group reversed $71 million of previously recognized Canadian digital-services-tax liabilities during the nine months ended September 30, 2026, for periods January 1, 2022 through December 31, 2025; it had no Canadian DST obligation as of September 30, 2026. source
• Canada repealed its Digital Services Tax Act on March 26, 2026, with retroactive effect to June 20, 2024. source
• Expedia Group is in various stages of inquiry or audit with tax authorities, and certain assessments may require prepayment before a challenge; a significant pay-to-play payment or litigation loss could negatively affect liquidity. source