Canada - British Columbia PST applied on digital services from April 2021

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.