What the New Netflix Tax for BC Users?

What the New Netflix Tax for BC Users? The B.C government introduced its 2020 budget Tuesday and some new taxes came with it, including one about streaming services like those of Netflix. Under it, software and telecom services vendors in Canada and abroad will need to require registering as tax collectors if the sales reported exceeding $10,000.

According to the document, the government will collect seven per cent provincial sales tax from a larger number of businesses in the digital economy. The province predicts the tax will produce $11 million for the fiscal year 2020/2021. Also, $16 million for the fiscal year that follows.

Finance Minister Carole James spoke on the new tax on Wednesday. He said that the government wants to ensure that these forms of online services are included in the tax system. James said the PST has been obtained on streaming services such as CraveTV, Apple TV and Amazon Prime.

A law professor at the University of Ottawa, Michael Geist is also chair of Canada’s research in Internet and e-commerce law. He said the tax will work like any other sales tax. Geist said Netflix and similar companies will be collecting sales tax on the government’s behalf.

As per the website of the streaming service, a standard plan with Netflix Canada costs $13.99 per month. Users to charge about 98 cents per month with the new tax, adding up to $11.76 per annum.

Two provinces already collect provincial sales tax from foreign web companies— Saskatchewan and Quebec. In Quebec, the provincial government had anticipated collecting $28 million out of the new tax in 2019. It had already raised $38 million as of Aug. 31. The new tax takes effect in B.C. 1 July 2020.

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