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March 3, 2021

British Columbia's expanded Provincial Sales Tax registration requirements to take effect on April 1

The Government of British Columbia (BC) announced on September 2, 2020, that April 1, 2021 is the effective date for the implementation of the expanded Provincial Sales Tax (PST) registration requirements introduced by the 2020 BC Budget on February 18, 2020. The original implementation date was July 1, 2020; however, the date was postponed as part of the COVID-19 relief measures. Under the new registration requirements, Canadian providers of goods, along with Canadian and foreign providers of software and telecommunication services, would be required to register as tax collectors and collect PST at 7% from customers located in BC if their BC gross revenue exceeds the set threshold of CAD $10,000. The expanded registration requirements apply to both business-to-business (B2B) and to business-to-consumer (B2C) sales of software and telecommunication services. Additional administrative guidance on actual application of the rules is yet to be provided by the BC government.

A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.


Full text of Tax Alert