30 April 2021
From April 2021, the Canadian province of British Columbia imposed Provincial Sales Tax (PST) at 7% on income earned by non-resident providers of e-services selling to consumers. The province also intends to implement Goods and Services Tax on these types of sales from 1 July 2021.
Previously, non-resident businesses providing digital services in British Columbia did not have to charge PST on their sales. However, to remove the unfair advantage this gives to 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 new tax will only apply to non-resident businesses with annual sales in British Columbia above a threshold of C$10,000 (approx. £6,000) and will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.
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