British Columbia’s PST Notice 2023-004

Changes for online marketplace facilitators and sellers

Frédéric Pansieri, David Afolabi
| 6/7/2023

In May 2023, the government of British Columbia (BC) issued a Provincial Sales Tax (PST) notice titled Notice 2023-004 (the Notice), which becomes effective on July 1, 2023. 

The Notice was issued to explain certain amendments (the Amendments) that were introduced by the BC Budget 2023, with regards to the online marketplace framework. The key changes are below.

Goods sent from outside Canada into BC

Effective July 1, 2023, Online Marketplace Facilitators (Facilitators)are no longer required to collect PST on goods sent from outside Canada into BC, regardless of whether the goods are intended for personal or commercial use. Prior to the Amendments, registered Facilitators were required to charge and collect PST on sales of certain goods2 that were brought into BC from outside Canada, unless a specific exemption applied. 

Application of PST on Services

Facilitators must now collect PST on Online Marketplace Services (Services)they provide to Online Marketplace Sellers (Sellers)whether Sellers are selling taxable or non-taxable services through the Facilitator’s Online Marketplace (Marketplace). Prior to the Amendments, Facilitators were only required to charge PST on Services provided to Sellers if such Services were to facilitate the sale of taxable services. 

Effective July 1, 2023, Services purchased by a Seller from a Facilitator are taxable if the Service is:

  • provided to goods that are in BC at the time the service is provided;
  • a service to store goods in BC; or
  • in respect of accommodation located in BC.

If the Service is not a service to goods, storage of goods or in respect of accommodation, then the service is still taxable if the Seller is in BC, except where the Service is used wholly outside BC.

For more information on various provincial and federal sales tax updates, visit our Indirect Tax services page or contact a member of Crowe Soberman’s Tax Group.

This article has been prepared for the general information of our clients. Please note that this publication should not be considered a substitute for personalized advice related to your situation.


1 Online Marketplace Facilitator generally means a business that works with Online Marketplace Sellers and operates an Online Marketplace Platform (such as a website or mobile app) to facilitate the purchase and retail sale, provision or lease of goods, software, and services – including accommodation, between third parties (i.e., Online Marketplace Seller and purchaser) – and collects payment for these sales, provisions, or leases.

These goods include goods for commercial use, motor vehicles, trailers and all-terrain vehicles.

3 Online Marketplace Service generally means services provided by Facilitators to Online Marketplace Sellers. Examples include listing of property and services, advertising or promotion, customer service, storage, fulfilment of orders, collection/facilitation of payments etc.

Online Marketplace Seller generally means a person who, through an Online Marketplace operated by a Facilitator, sells property (including software) and services, other than legal services.

Contact Us

Frederic Pansieri
Frédéric Pansieri
Partner, Indirect Tax
Frédéric Pansieri Professional Corporation
David Afolabi Crowe Soberman
David Afolabi
Senior Manager, Indirect Tax