Cord cutters and those who consume content through streaming in British Columbia will be charged a bit extra later this year as the provincial government has now required Netflix and other streaming services to add PST to its subscription charges.
This news comes through by way of Global News who reported that Netflix users could be charged an additional $8.39/year in taxes, depending on the tier of their subscription. According to Global, the decision to include PST on Netflix subscription was made to even the playing field as other streaming services are already charging PST to customers in some capacity.
CraveTV, Apple, and Amazon Prime currently have a retail presence in Canada, charging customers PST in many cases. Netflix was the outlier. Moving forward, Netflix, alongside any streaming service receiving $10,000 in annual revenue will now charge seven percent PST for its services.
When speaking to the Ministry of Finance, they responded to Global by saying: “B.C. has had a sales tax in place since 1948 — that has not changed. However, as people have shifted to buying more and more goods and services online, legislation in many jurisdictions hasn’t kept pace. Clarifying registration requirements will future-proof our tax system as the shift to digital purchasing continues.”
It’s worth noting that as of 2018, Quebec began applying PST to Netflix and other streaming service subscriptions.
The additional PST charge will be in effect as of July 1st, 2020.