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Canada British Columbia PST on digital services

  • Aug 30, 2020 | Richard Asquith

The Canadian province on British Columbia has introduced the obligation to charge Provincial Sales Tax (PST) on income earned by non-resident providers of digital services. Check Avalara’ global VAT on digital services tracker.  BC’s PST is 7%.

There is no major federal level Canadian GST charge on digital or elecronic services.

This new BC tax applies to sales of software and telecommunications services. Only businesses with annual sales in BC above C$10,000 will be liable to register and charge PST

The measure was to be introduced on 1 July 2020, but was delayed due to the COVID-19 pandemic. The new implementation date is to be confirmed.

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%.

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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 can be contacted at: richard.asquith@avalara.com. 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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