Canada British Columbia levies PST on foreign digital services
- Jul 16, 2020 | Richard Asquith
Update: the British Columbia 2020 budget reforms have been delayed due to the COVID pandemic.
From 1 July 2020, British Columbia will introduce Provincial Sales Tax (PST) on sales made by non-resident providers of digital services to consumers residing in the province.
Currently, non-resident businesses providing digital services in British Columbia do not have to charge PST on their sales. However, in an effort to remove the unfair advantage this gives non-resident companies over resident providers, the Canadian Revenue Agency has confirmed PST will be applied on these types of supplies at a rate of 7%.
This will be subject to an annual registration threshold of C$10,000 and applies to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.