In February 2020, the province of British Columbia (BC) announced various provincial sales tax (PST) changes, some of which were proposed to take effect 1 July 2020. Most notable of the changes impacted Canadian sellers of goods and Canadian and foreign sellers of software and telecommunication services, requiring such vendors to register to collect 7% PST if specified BC revenues exceed CA$10,000. Due to COVID-19, the changes will not take effect until a new proposed date of 1 April 2021.
Given the low de minimis threshold, many non-resident vendors of software and telecommunication services (such as Netflix) will be required to register and collect the tax regardless of whether the non-resident historically was not viewed as carrying on business in the province. BC follows the provinces of Quebec and Saskatchewan that previously broadened their tax nets to capture non-resident sales in the provinces.
Other matters of note from BC’s February 2020 budget (note, this is not a comprehensive list):