PlayStation Store Purchases Will No Longer be Tax Free in Canada Starting Next Year
https://wccftech.com/playstation-store-canada-no-longer-tax-free-2021/
Canadian game prices can sometimes be a bit hard to swallow, with new titles now costing $80 to $90, but at least there was a small silver lining for PS4 and PS5 owners, who haven’t had to pay any sales tax on games purchased digitally via the PlayStation Store. Considering sales taxes go as high as 15 percent in Canada, or nearly $14 on a $90 next-gen game, that’s a fairly significant deal. Well, fellow Canucks, it’s time to say goodbye to those savings.
The PlayStation Store not charging sales tax in Canada was due to a loophole in laws that stated only companies with a physical presence in Canada had to charge sales tax. So, Microsoft and Nintendo, which do have official Canadian branches, charge tax on digital games. Sony, which doesn’t, hasn’t had to. Well, according to Federal Finance Minister Chrystia Freeland, that exemption is going away. Starting next year everyone selling digital goods in Canada, including previously-exempt companies like PlayStation and Netflix, will have to start charging sales tax. Again, depending on which province you happen to live in, that will range from 5 to 15 percent on every digital purchase or subscription.