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;
- app’s;
- streaming or download media;
- SaaS services;
- e-learning;
- online gaming;
- dating websites; and
- membership to online associations.
Update – other provinces has since followed suite, including:
British Columbia PST April 2021. Manitoba 7% PST December 2021
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 | 5% | Jul 2021 | C$30,000 | |
| Canada British Columbia | 7% | Apr 2021 | C$10,000 | |
| Canada Manitoba | 7% | Dec 2021 | C$10,000 | B2C; accommodation sharing |
| Canada Quebec | 9.98% | Jan 2019 | C$30,000 | |
| Canada Saskatchewan | 6% | Jan 2019 | Nil for non-residents | |
| Mexico | 16% | Jun 2020 | Nil | |
| United States | Up to 10% | 2018+ | Varies by state |
