E-Commerce Businesses Now Face PST Registration In Saskatchewan

In the wake of the COVID-19 crisis, the Government of Saskatchewan has tabled Bill 211 - An Act to amend The Provincial Sales Tax Act ("Bill 211"), which broadens the application of the Saskatchewan provincial sales tax ("PST") by enacting new registration and collection requirements for e-commerce platforms. Within less than three weeks of its introduction and first reading, Bill 211 received royal assent on July 3, 2020. It is important to note that these new rules apply with a retroactive effect to January 1, 2020.

Essentially, under the new rules, operators of "electronic distribution platforms",¹ "online accommodation platforms"², and "marketplace facilitators"³ may now be required to register as "vendors" for purposes of collecting and remitting the applicable PST on sales generated through their platforms to consumers or users in Saskatchewan. This is the case whether they are regarded as carrying on business in Saskatchewan or not for PST purposes.