Streaming services such as Netflix and Spotify will now be charging 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 are required to charge provincial sales tax as part of the provinces 2021-22 budget. These include:
- Audio and video streaming service providers on the sale of streaming services;
- Online marketplaces on the sale of taxable goods sold by third parties via their online platforms; and
- Online accommodation platforms on the booking of taxable accommodations in Manitoba.
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.