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Canada

23 March 2021

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New Provincial Sales Tax Registration Requirements Effective 1 April 2021 for Businesses Outside British Columbia, Canada

The Government of British Columbia (BC), Canada recently updated its provincial sales tax (PST) information page to include notice of changes coming into effect on 1 April 2021, including new registration requirements for businesses located outside BC. As summarized in Bulletin PST 001 (updated 18 February 2021), the new requirements apply as follows:

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Additional Businesses Required to Register Effective April 1, 2021

Businesses Located Outside BC but Within Canada

Effective April 1, 2021, you must also register to collect and remit PST if you are located outside BC (see Location of Your Business below) but within Canada and do all of the following in the ordinary course of your business:

  • Sell taxable goods to customers in BC
  • Accept orders from customers located in BC (including by telephone, mail, email or Internet) to purchase goods
  • Deliver the goods you sell to your BC customers to locations in BC (this includes goods you deliver through a third party, such as a courier)
  • Meet the minimum BC revenue threshold:
    • your gross revenue in the previous 12 months from all retail sales and leases of goods and all sales and provisions of software and telecommunication services to BC customers is more than $10,000, or
    • your estimated gross revenue in the next 12 months from all sales and provisions of software and telecommunication services to BC customers is more than $10,000

If you sell vapour products (including parts and accessories) to BC customers, you must register to collect and remit PST even if you do not meet the minimum BC revenue threshold.

If you meet these criteria, you must be registered (as of April 1, 2021) before delivering goods into BC. Starting April 1, 2021, you must collect and remit PST on all your taxable sales to BC customers.

Businesses Located Outside BC Either In or Outside Canada

Effective April 1, 2021, you must also register to collect and remit PST if you are located outside BC and are either in or outside Canada (see Location of Your Business below) and do all of the following in the ordinary course of your business:

  • Sell or provide taxable software for use on or with an electronic device ordinarily situated in BC or sell or provide taxable telecommunication services to customers in BC
  • Accept orders from customers located in BC (including by telephone, mail, email or Internet) to purchase software for use on or with an electronic device ordinarily situated in BC or telecommunication services
  • Meet the minimum BC revenue threshold:
    • If you are located in Canada:
      • your gross revenue in the previous 12 months from all retail sales and leases of goods and all sales and provisions of software and telecommunication services to BC customers is more than $10,000, or
      • your estimated gross revenue in the next 12 months from all sales and provisions of software and telecommunication services to BC customers is more than $10,000
    • If you are located outside Canada:
      • your gross revenue in the previous 12 months from all sales and provisions of software and telecommunication services to BC customers is more than $10,000, or
      • your estimated gross revenue in the next 12 months from all sales and provisions of software and telecommunication services to BC customers is more than $10,000.

For information on software and telecommunication services, see Bulletin PST 105, Software, and Bulletin PST 107, Telecommunication Services.

If you meet these criteria, you must be registered (as of April 1, 2021) before providing software for use on or with an electronic device ordinarily situated in BC or providing telecommunication services. Starting April 1, 2021, you must collect and remit PST on all your taxable sales to BC customers.

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