B.C. online marketplaces subject to PST as of July

B.C. announced in the 2020 budget that they wanted to level the playing field and ensure online marketplace transactions were subject to the PST in a manner similar to other purchases of goods. This was enacted in a legislative amendment introduced February 22, 2022 with the B.C. Budget.

RCC wants to draw to members’ attention again that this change includes an obligation to charge PST on online marketplace services. “Online marketplace service” as defined in the legislation means any of the following services provided by an online marketplace facilitator, or by an agent, partner, joint venturer or associated corporation of the online marketplace facilitator, to an online marketplace seller: (a) the listing of tangible personal property, software or taxable services, other than legal services, for sale, lease or provision, as applicable; (b) advertising or promotion; (c) customer service; (d) storage; (e) the fulfillment of orders or bookings; (f) the collection or facilitation of payment, either directly or indirectly, and transmission of the payment to the online marketplace seller; (g) accepting or assisting with cancellations, changes, returns or exchanges of tangible personal property, software or taxable services other than legal services; (h) other services to facilitate an online marketplace seller’s sale, provision or lease of tangible personal property, or sale or provision of software or taxable services, other than legal services, through an online marketplace.”

RCC is considering making a submission to the B.C. Ministry of Finance in regard to this change.