Facilitating marketplaces services due even when non-taxable supplies
British Columbia has confirmed services provided by to facilitate the sale or provision of non-taxable services are still subject to Provincial Sales Tax. This measure was including in the Canadian provinces 2023 budget.
The measure will be introduced from 1 July 2023. Additional technical changes are made in respect of tax collection obligations on commercial sales, rules on when an online marketplace facilitator is considered to provide an online marketplace service, and the definitions of online marketplace facilitator, online marketplace seller and online marketplace service.
British Columbia PST on marketplaces was imposed from 1 July 2022. This covers:
- traditional services
- house shares
- advertising services
- Fulfilment services
- Storage services