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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.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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