Another Canadian province imposes Provincial Sales Tax on non-resident providers
The Canadian province of Manitoba is to levy 7% Provincial Sales Tax (PST) on streaming media (video and music) and online house or flat sharing services. This will include platforms that provide these services.
The new charge on non-resident is to come into place from 1 December 2021. Subscribe to our frequent global VAT and GST news letter for other updates. VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.
There is an GST registration threshold of C$10,000 annual sales.
Manitoba 7% PST adds to new Federal 5% GST on digital services
Since 1 July 2021, Canada’s federal 5% Goods and Services Tax will be levied on non-resident providers of digital or electronic services. This matches similar moves in Europe, Asia and South America.
Canadian GST liabilities on digital services include the following:
- 5% Canadian GST – from 1 July 2021
- 9.976% Quebec QST – since January 2019
- 6% Saskatchewan PST – since January 2019
Check global VAT and GST rates for the latest Canadian GST, PST, HST and QST rates.
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 |
