B.C. ‘Netflix Tax’ Kicks in on April 1, Following COVID-19 Delay

Last year, the British Columbia government announced it would start requiring streaming services such as Netflix to begin collecting 7% in provincial sales tax.

Netflix was an outlier as other streaming services such as Apple TV+, Crave and Amazon Prime Video already collected PST. The B.C. decision to collect PST on streaming services was eventually delayed due to the COVID-19 pandemic.

Fast forward over a year later, B.C.’s Ministry of Finance announced on Friday the new tax on streaming services will kick in on April 1, 2021.

“All sellers of digital software and telecommunication services will be required to collect PST on sales to B.C. customers if they have B.C. revenues of more than $10,000,” said the Ministry of Finance in a statement.

According to the B.C. government last year, it estimated the new tax on digital streaming services would bring in $11 million for the 2020-2021 fiscal year and $16 million for the next.

Last fall, Netflix increased the price of its standard and premium plans, now starting at $14.99 and $18.99 per month.