The cost of streaming your favourite TV shows, music and movies will soon go up for British Columbians as a 7% sales tax is set to apply to everything from Netflix and Disney Plus to Spotify.
“Due to a recent change in British Columbia’s tax law, the general 7% provincial sales tax (PST) will now apply to your Netflix membership cost,” wrote the streaming giant in an email to customers across B.C. Friday.
It’s not clear how much monthly bills would go up — Netflix’s website says memberships range from $9.99 to $18.99 a month — but the company did add the tax will apply to all B.C. accounts after April 1, 2021.
First tabled in the B.C. government’s 2020 budget, the updated tax code was set to roll out July 1, 2020, but was delayed because of the pandemic.
“Effective April 1, 2021, Canadian sellers of goods and Canadian and foreign sellers of software and telecommunication services will be required to register to collect PST if specified B.C. revenues exceed $10,000,” notes the province in a summary of its tax changes.
SODA, CARBON TAXES CHANGES
In addition to the taxing of streaming services, the amended provincial tax code means “carbonated beverages that contain sugar, natural sweeteners or artificial sweeteners will no longer qualify for the exemption for food products for human consumption.”
The 7% PST “will also apply to all beverages that are dispensed through soda fountains, soda guns or similar equipment, along with all beverages dispensed through vending machines,” according to the province’s tax code summary, noting vending machines that solely dispense coffee or water will not be included.
Also going into effect April, 1, 2021, B.C.’s carbon tax rates will be revised to officially align with the federal carbon pricing scheme.
