BC's Getting A "Netflix Tax" & It'll Cost You More To Binge Your Favourite Shows
The tax will come into effect this summer.
Everyone loves a good streaming service but pretty soon we are going to have to pay serious bucks to enjoy it. If you’re living in B.C., you should be prepared to start paying taxes on services like Netflix. In the 2020 budget plan, it was announced the provincial government will be adding a B.C. Netflix tax along with taxes on other similar streaming services.
The B.C. Government recently announced its 2020 budget plan. Within that budget was the detailing of a new streaming tax to be paid by all B.C. residents who use certain streaming platforms.
This will mean that binging theis about to cost us a little more than we're used to.
According to Global News, this new “Netflix tax” will be implemented on July 1, 2020.
It will be requiring streaming providers and other “Canadian and foreign sellers of software and telecommunications services” to begin collecting a seven percent Provincial Sales Tax (PST) if they make annual revenues of over $10,000.
The new tax will be implemented by ensuring Canadian companies register as tax collectors, says Victoria News.
This would mean that you will be paying an extra $8.39 per year in tax alone for your Netflix subscription.
The province has clarified that companies including Amazon Prime, Apple, and Crave have already been collecting the PST in Canada for quite some time.
Kris Sims of the Canadian Taxpayers Federation told CTV News that the tax will not apply to video or music streaming services operated by foreign companies.
Sims also stated that $16 million is expected to be made by the new Netflix tax.
CTV News reported from the Canadian Press that Netflix brought in a whopping $780 million in revenue from Canadian subscribers alone in the first nine months of 2019.
In 2018, the company brought in $835 million.
But it wasn’t just Netflix and streaming providers that were targetted in the 2020 budget.
Carbonated beverages will also have an increase in tax by charging PST. The government hopes that this will help address the health of young provincial residents.
The provincial government is constantly looking for ways to deter the sales of items that are bad for our health, including.
In November of 2019, it was announced that there would be a newof all vaping products.