Saskatchewan is introducing its regional sales tax, Provincial Sales Tax (PST) on digital or electronic services provided by non-resident providers from 1 January 2019. Saskatchewan will also make facilitating marketplaces liable to collecting PST for their third-party sellers of digital services. This will come into effect from 1 January 2020. This will include home and other accommodation sharing websites.
PST is currently 6%, and is charged in addition to the federal Goods and Services Tax. Canada’s federal government will impose its 5% Goods and Services Tax from 1 July 2021.
e-services subject to PST
The following services will be liable to PST from 2019:
- e-books and periodicals;
- streaming or download media;
- SaaS services;
- online gaming;
- dating websites; and
- membership to online associations.
Update – other provinces has since followed suite, including:
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|