B.C. clarifies rules for online marketplace facilitators and online marketplace sellers

B.C.’s 2023 budget included amendments to the online marketplace framework intended to provide clarification, simplification, and consistency. RCC notes that this broadens the number and scope of transactions subject to PST. The Ministry of Finance has issued a notice to explain the changes.

Effective July 1, 2023, online marketplace facilitators must collect PST from online marketplace sellers on online marketplace services whether the seller is selling taxable or non-taxable services through the online marketplace. Prior to this amendment, online marketplace facilitators were required to charge online marketplace sellers PST on online marketplace services only if the service was to facilitate the sale of taxable services. The amendment now extends to services that are non-taxable as well (for example, massage services).

Also effective July 1, 2023, are further clarifications surrounding what constitutes a taxable service, applying the PST on goods from outside Canada, and, clarifying that the online services tax applies only to goods sold to British Columbians.