BC Online Marketplaces Face PST Rules

Many online marketplace facilitators now have to collect British Columbia’s seven per cent provincial sales tax (PST), says KPMG in its ‘TaxNewsFlash Canada.’ Under this change, which was announced in British Columbia’s 2022 budget, online marketplace facilitators must register and collect PST on many of the taxable sales through their marketplaces. In addition, affected facilitators and certain other entities will also have to collect PST on certain online marketplace services. As a result of these changes, online marketplace facilitators and other affected entities that are subject to the PST rules must identify all affected sales and ensure their systems are updated to collect and remit the sales tax as required. In general, the tax must be registered and collected on goods and services that are located within Canada at time of sale, provided, or leased to a person in British Columbia. Marketplace facilitators that facilitate only a small amount of taxable sales may not be required to register under these new rules.