The Canadian province of Québec was the first region to impose its sales tax, Québec Sales Tax (QST) on non-resident providers of e-services to its consumers. The current Québec QST rate is 9.976%
Canada’s federal government imposed dits 5% Goods and Services Tax from 1 July 2021.
QST on digital services by foreign providers
Québec brought digital services and providers of intellectual property to consumers into the tax net. There is a QST registration threshold of C$30,000 per annum. There is already a simplified QST registration portal available, and non-residents over the threshold should be QST registered by 1 January 2019. There is no right to deduct local QST.
Non-resident providers are required to capture at least two pieces of proof of residency in the province, including:
- IP address
- Billing address
- Credit card or bank transfer address
- Sim card or telephone number code
Canada sales tax on digital services
UPDATE: taxing schedule by Canadian provinces:
British Columbia PST April 2021
Saskatchewan HST January 2019
Manitoba 7% PST December 2021
Check our global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.
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|