Another Canadian province imposes Provincial Sales Tax on non-resident providers
The Canadian province of Manitoba is to levy 7% Provincial Sales Tax (PST) on streaming media (video and music) and online house or flat sharing services. This will include platforms that provide these services.
The new charge on non-resident is to come into place from 1 December 2021. Subscribe to our frequent global VAT and GST news letter for other updates. VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.
Manitoba 7% PST adds to new Federal 5% GST on digital services
Since 1 July 2021, Canada’s federal 5% Goods and Services Tax will be levied on non-resident providers of digital or electronic services. This matches similar moves in Europe, Asia and South America.
Canadian GST liabilities on digital services include the following:
- 5% Canadian GST – from 1 July 2021
- 9.976% Quebec QST – since January 2019
- 6% Saskatchewan PST – since January 2019
Check global VAT and GST rates for the latest Canadian GST, PST, HST and QST rates.
North America VAT on digital services
|Comments (click for details)||Rate||Implementation Date||Threshold||Comments|
|Canada British Columbia||7%||Apr 2021||C$10,000|
|Canada Manitoba||7%||Dec 2021||B2C; accommodation sharing|
|Canada Quebec||9.98%||Jan 2019||C$30,000|
|Canada Saskatchewan||6%||Jan 2019||Nil for non-residents|
|United States||Up to 10%||2018+||Varies by state|