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.

Are you trading globally? Whether you require basic VAT advice or specific VAT compliance support, Fiscal Solutions can help. Our team of multi-lingual experts are knowledgeable in all the different VAT rules in Europe and around the world.

We help you simplify today’s complexities and address tomorrow’s challenges. The values we represent, and our consistent advice, mean you can trust Fiscal Solutions to do the right thing – for you and your organisation.

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