Many online marketplace facilitators must file their first annual information return for British Columbia provincial sales tax (PST) for the period from July 1, 2022 to June 30, 2023 by August 31, 2023. British Columbia has released the new return in electronic format only. In its updated guidance, British Columbia notes that online marketplace facilitators can access the annual information return through their eTaxBC account.
Background
Many online marketplace facilitators are required to collect B.C. PST since July 1, 2022. British Columbia announced new PST registration obligations for online marketplace facilitators and certain other entities in its 2022 provincial budget (see TaxNewsFlash-Canada 2022-08, “Highlights of the 2022 British Columbia Budget”). In general, the new PST rules require entities that meet the statutory definition of “online marketplace facilitator” to collect and remit PST on retail sales of taxable goods sold by online sellers through their electronic marketplaces, as well as on certain newly taxable services rendered by the online marketplace facilitators (and certain other entities) to the online sellers.
As a reminder, online marketplace facilitators should ensure they have implemented the B.C. PST changes that applied effective July 1, 2023. Amongst other changes, affected facilitators must collect and remit PST on certain additional services rendered to online marketplace sellers. Also, new PST rules essentially narrow the circumstances where PST is applied to some of these taxable services. These changes will be reflected in the details that will be included in next year’s annual information return for the period covering July 1, 2023 to June 30, 2024.
Don’t miss details on first PST annual information return
In its guidance PST 142 “Online marketplace Facilitators and Sellers, and Online Marketplace Services”, revised August 10, 2023, British Columbia lists what data online marketplace facilitators must provide on their annual information return. Based on the guidance, online marketplace facilitators must report specific information with respect to each of the online marketplace sellers that facilitate B.C. sales of goods, software or taxable services (including accommodation in B.C.) through their online marketplace platforms, including:
- The seller’s name or business name, address and contact information
- The seller’s business number if the seller is located in Canada and has a business number
- The seller’s federal employer identification number if the seller is located in the U.S.
- The total amount of payment collected by the online marketplace facilitator and transmitted to the seller in respect of all of the seller’ B.C. sales, provisions or leases of goods, software and taxable services
- The amount of tax collected by the online marketplace facilitator on behalf of the seller
- The amount of tax that the online marketplace facilitator has remitted to the government on behalf of the seller
- The total value of the consideration accepted by the online marketplace facilitator from all of the B.C. sales, provisions or leases through its online marketplace of goods, software or services (other than legal services)
- The total value of the consideration accepted by the online marketplace facilitator from sellers for online marketplace services provided to goods or to store goods in B.C., in respect of accommodation in B.C., or other services if the seller is located in B.C.
KPMG observation
Online marketplace facilitators that are unable to locate the new annual information return in their eTaxBC account should contact the B.C. government’s PST tax office as soon as possible to ensure they have access to the return and are able to file their first annual information return by the deadline of August 31, 2023.
We can help
Your KPMG adviser can help you with the filing of this new PST annual information return as well as help to manage other indirect tax obligations. For more details, contact your KPMG adviser or one of the following Indirect Tax professionals:
Walter Sisti
National Leader - Indirect Tax Services
T: 416-777-3920
E: wsisti@kpmg.ca
Simon Proulx
T: 647-777-5318
E: sproulx@kpmg.ca
David Raistrick
T: 416-476-2822
E: davidraistrick@kpmg.ca
Brad Thorimbert
T: 306-260-8493
E: bthorimbert@kpmg.ca
Nathalie Vanasse
T: 514-840-8050
E: nvanasse@kpmg.ca
Katherine Xilinas
T: 604-646-6406
E: kxilinas@kpmg.ca
Information is current to August 14, 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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