Canada's sales tax landscape is divided between the federal Goods and Services Tax / Harmonized Sales Tax (GST/HST) system and the standalone Provincial Sales Taxes (PST) levied independently by British Columbia, Saskatchewan, and Manitoba. Quebec operates the Quebec Sales Tax (QST), which is administered separately but closely mirrors the GST structure. In 2024, all three PST provinces made notable adjustments to their sales tax bases, registration requirements, or compliance processes. Businesses operating across provincial borders need to understand these changes and their compliance obligations in each jurisdiction.
British Columbia's PST has undergone a sustained expansion into the digital economy over recent years. As of 2024, BC PST at 7% applies to a broad range of software and software-as-a-service (SaaS) products sold to BC customers, including:
The marketplace facilitator rules are particularly significant for businesses selling through third-party platforms. If a marketplace facilitator is registered for BC PST and collects PST on your sales, you are relieved of the obligation to collect and remit PST on those specific transactions — but you remain responsible for confirming the facilitator is properly registered and collecting.
BC requires non-resident sellers — including software vendors and SaaS providers based outside BC — to register for and collect PST if they make taxable sales to BC customers exceeding $10,000 in a 12-month period. This registration threshold means many Canadian and international software businesses with modest BC customer bases now have compliance obligations in BC that did not exist before the digital expansion.
Saskatchewan's PST rate of 6% applies to tangible personal property and a defined list of services. Saskatchewan has historically applied PST to insurance premiums for certain categories of insurance, and the 2024 rules continue to refine which insurance types are taxable and which are exempt.
Key Saskatchewan PST insurance rules as of 2024:
| Insurance Type | Saskatchewan PST Status |
|---|---|
| Property and casualty insurance (business) | Taxable at 6% |
| Vehicle insurance (private) | Taxable at 6% |
| Life insurance premiums | Exempt |
| Group life and disability insurance | Exempt |
| Accident and sickness insurance | Exempt |
Saskatchewan also imposes PST on telecommunications services, contracts for the installation of tangible personal property, and certain repair and maintenance services. Businesses in the construction and trades sector that work across provincial borders should review whether their service contracts trigger Saskatchewan PST obligations when work is performed in the province.
Saskatchewan extended its PST collection obligations to online marketplace facilitators in recent years, requiring platforms that facilitate the sale of tangible personal property to SK customers to collect and remit PST on those sales. Sellers using these platforms should confirm whether PST is being collected by the platform or whether the seller retains that obligation.
Manitoba levies its Retail Sales Tax (RST) at 7% on most goods and a growing range of services. Manitoba's 2024 budget included targeted adjustments to the RST base and compliance framework:
Businesses that sell goods or services into multiple PST provinces face a complex compliance landscape. Unlike the GST/HST system — where a single federal registration covers the entire country — PST registration is province-specific. A business with customers in BC, Saskatchewan, and Manitoba may need three separate PST registrations, three separate remittance schedules, and compliance with three distinct sets of rules about what is taxable and what is not.
Common compliance challenges for multi-provincial businesses include:
Each PST province has its own registration threshold, process, and requirements. Businesses that have not yet registered but have been making taxable sales above the threshold should consider the voluntary disclosure programs available in each province. Proactive disclosure typically results in reduced penalties and can limit the retroactive period for which tax and interest must be remitted.
Key registration points by province:
Businesses that discover they have had an unregistered obligation can often self-register and use the voluntary disclosure process to come into compliance. The terms available — particularly regarding penalties and the look-back period — vary by province and are more favourable when the disclosure is voluntary rather than prompted by a provincial audit.
Managing PST compliance across BC, Saskatchewan, and Manitoba requires a systematic approach. Businesses that invest in compliance infrastructure upfront spend significantly less on remediation later. Practical steps include:
Our team at Swift Accounting helps businesses across Canada assess their PST registration obligations, establish compliant filing processes, and navigate voluntary disclosure where historical obligations exist. Contact us at (403) 999-2295 or mailbox@swiftltd.ca to discuss your specific situation.