Canada Saskatchewan PST on e-services
The Canadian Province of Saskatchewan imposed its Provincial Sales Tax (PST) on electronic services in January 2019. Saskatchewan PST is currently 6%.
Scope of e-services
The taxable definition of e-services includes income for foreign providers of: streaming or download media; e-learning; app's; e-books and periodicals; online gaming; dating websites; SaaS services; and membership to online associations.
PST is the local state tax and is charged on taxable supplies with the federal government's Goods and Services Tax, GST. However, Canada is yet to impose GST on e-services. Quebec introduced its provincial sales tax, QST, on e-services at the same date as Saskatchewan.
Foreign services providers are now required to register with the Saskatchewan Ministry of Finance to file and remit collected PST. Providers will have to track and identify the location of the user to determine if PST is due. Generally, this may be determined by one of the following flags:
- IP address within the state;
- Credit card number issued in state; or
- The postal address of the user.
From January 2020, marketplaces become liable for PST on digital services.