Canada’s British Colombia to apply PST to e-services from 1 July 2020

28 February 2020

From 1 July 2020, British Colombia will introduce 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$10k (approx. $7.5k) and applies to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.