Starting in December, streaming services such as Netflix and Spotify will be required to charge a 7% provincial sales tax (PST) if your subscription address is located in Manitoba.
Streaming services aren’t the only ones getting taxed… online accommodations and online marketplaces will also be required to charge provincial sales tax as part of the provinces 2021-22 budget.
The change is expected to bring in an additional $8.8 million this fiscal year and $26.5 million during its first full year of implementation.
Examples taxable services:
- An Airbnb rental in Manitoba will now have a 7% PST charge
- Netflix subscribers will pay an additional 90 cents per month ($11 per year)
- Buying products from third-party sellers on Amazon will now have a 7% PST charge
- Etsy sellers with more than $10,000 of sales a year will need to charge 7% PST
Private sales on Kijiji or Facebook Marketplace will not be subject to the tax and remain unchanged.