Online marketplace facilitators must collect and remit B.C. provincial sales tax (PST) on certain additional services rendered to online marketplace sellers as of July 1, 2023. Also, online marketplace facilitators will no longer be required to collect B.C. PST on goods sent from outside Canada to British Columbia that are facilitated through their online marketplaces by online marketplace sellers. These changes were announced in British Columbia’s 2023 provincial budget and apply effective July 1, 2023.

As a result of these changes, online marketplace facilitators and other affected entities subject to the B.C. PST changes must identify all affected transactions and ensure their systems are updated to collect and remit the PST as required. Marketplace sellers should review these transactions in light of these changes to determine if they must collect and remit the PST on those goods.


British Columbia announced PST registration, collection and remittance obligations for online marketplace facilitators and certain other entities in its 2022 provincial budget. Under these rules, which took effect on July 1, 2022, entities that meet the statutory definition “online marketplace facilitator” generally must register, collect and remit PST on retail sales of taxable goods, software, accommodation and services sold by marketplace sellers through their online marketplaces.

Effective July 1, 2023, the definition “online marketplace service” is amended so that PST may now apply to online marketplace services that relate to the online marketplace sellers’ taxable or non-taxable services. Previously, the marketplace sellers’ services had to be taxable services. As such, the amended definition “online marketplace service” rendered by the online marketplace facilitators (and certain other entities) includes:

  • Listing sales of goods, software or services
  • Advertising or promotion
  • Customer service
  • Storage
  • Fulfilling orders or bookings
  • Collecting or facilitating payments, either directly or indirectly, or transferring payments to the marketplace seller
  • Accepting or assisting with cancellations, changes, returns or exchanges of goods, software or services, and
  • Other services to facilitate a marketplace seller’s sale of goods, software or services through the online marketplace.

PST changes effective July 1, 2023

In general, online marketplace facilitators face PST changes whether they sell services to online marketplace sellers, or facilitate through their marketplace goods sent from outside Canada into British Columbia by online marketplace sellers, effective July 1, 2023.

Online marketplace services

In addition to changing the definition “online marketplace service”, the amendments narrow the circumstances under which the B.C. PST applies to these newly-taxable services. As noted in the 2023 budget, these changes are intended to better align the PST rules to the GST/HST place of supply rules.

In general, effective July 1, 2023, an online marketplace facilitator must collect and remit PST on online marketplace services provided to online marketplace sellers where:

  • The service is provided to goods that are in British Columbia at the time the service is provided
  • The service is in respect of storage of goods and the goods are stored in British Columbia
  • The service is in respect of an accommodation located in British Columbia
  • The service is not a service to goods, not in respect of storage of goods or not in respect of accommodation, and the online marketplace seller is in British Columbia (except where the service is used wholly outside British Columbia).

Goods sent from outside Canada into British Columbia

Effective July 1, 2023, online marketplace facilitators that facilitate the sale (provision or lease) of goods through their online marketplace for online marketplace sellers, are not required to collect the PST on those goods if the goods are located outside Canada at the time they are sold (provided or leased). Previously, online marketplace facilitators generally had to collect and remit PST on such goods shipped from outside Canada into British Columbia intended for commercial use.

We can help

Your KPMG adviser can help you assess the effect of British Columbia’s PST changes for e-commerce transactions on your business. For more information, please contact your KPMG adviser or one of the following Indirect Tax professionals:

Walter Sisti,
National Leader - Indirect Tax Services

Simon Proulx
T: 647-777-5318

David Raistrick
T: 416-476-2822

Brad Thorimbert
T: 306-260-8493

Nathalie Vanasse
T: 514-840-8050

Katherine Xilinas
T: 604-646-6406

Information is current to June 26, 2023. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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