PC & Video Games

Canadian government to start collecting taxes on PSN, Steam, and other digital purchases

  • Last Updated:
  • Dec 30th, 2020 5:44 am
[OP]
Deal Fanatic
Feb 11, 2007
9108 posts
3502 upvotes

Canadian government to start collecting taxes on PSN, Steam, and other digital purchases

The Playstation Network and Steam, were previously exempt from charging taxes on digital purchases made in Canada
because Sony and Valve do not have digital goods servers located in Canada. This will also effect other services like Google / Google Play which previously did not collect
taxes on digital purchases made in Canada.

https://www.reuters.com/article/us-cana ... SKBN28A2ZM

Nintendo and Microsoft have digital servers that are located in Canada therefore they have always charged and collected
sales tax in Canada. Quebec is the exception because they recently added tax collection on everything but they go by their own laws
as if they are separate from Canada in some ways.

Playstation Network was exempt from charging taxes because Sony does not have servers for their online storefront located in Canada.


UPDATED:

From Wookie76's post on the PSN sale thread:
Wookie76 wrote: here is the news story here, starting June 2021 all psn purchases will be taxed, the dream is over folksConfused Face https://www.playstationlifestyle.net/20 ... purchases/
June 2021 is the date the government will start enforcing the new law in Canada.

From the PSN sale thread. On another note, XBox Microsoft store has very few games on sale compared to the Playstation and Nintendo Online stores, which I guess is why
there are rarely any XBox Store sale threads on RFD.

.
Last edited by XFactor11 on Dec 30th, 2020 7:21 am, edited 4 times in total.
21 replies
Deal Fanatic
Oct 7, 2010
9842 posts
1768 upvotes
Other countries charge taxes on digital or not?
[OP]
Deal Fanatic
Feb 11, 2007
9108 posts
3502 upvotes
It depends on the country's laws. Most countries do not if the servers the digital goods are purchased from
are not located within the borders of the nation collecting the sales taxes.

spike1128 wrote: Other countries charge taxes on digital or not?
Deal Addict
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Nov 2, 2012
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Well on the Switch eshop anyway, I'm pretty sure myself and every single other person in Canada lives in Alberta! Smiling Face With Open Mouth And Smiling Eyes
Deal Addict
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Aug 29, 2011
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Meh,

I'm in Quebec, it was already the case for the first 10%

Now that's and extra 5%

That's why i buy used game from Amazon. Cheaper and not tax
Deal Expert
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Mar 18, 2005
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Niagara Falls
It sucks, but expected imo and honestly I'm surprised it's gone un-taxed for this long.
Deal Addict
Feb 17, 2013
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Simple...Just don't buy from Canadian PSN or Nintendo eshop. Buying international psn card or Nintendo eshop cards isn't that complicated.
Deal Addict
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Jun 16, 2009
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GTA
Caerus wrote: Well on the Switch eshop anyway, I'm pretty sure myself and every single other person in Canada lives in Alberta! Smiling Face With Open Mouth And Smiling Eyes
I lived in the SaddleDome when PSN used to charge tax Back in the PS3 days. I was a backup goalie that lived in a utility closet at the arena. I moved back to Ontario the moment they stopped charging Smiling Face With Open Mouth And Smiling Eyes
c'mon get happy!
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Aug 20, 2009
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Grimsby
I have no issue with it, surprised they got away with it as long as they did. As always I look at each game individually in terms of how much its worth to me and then wait until it hits that price point before I buy it. Some games are worth hundreds, others a few bucks /shrug
Deal Addict
Dec 17, 2011
2075 posts
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Montreal
vonblock wrote: Meh,

I'm in Quebec, it was already the case for the first 10%

Now that's and extra 5%

That's why i buy used game from Amazon. Cheaper and not tax
You can also check out other sites - GreenManGaming, Fanatical, GOG (if you don't need your games on Steam), etc. They offer prices in CAD and no tax. Majority of the time, their prices are better than Steam's prices anyways. My last purchases have been from those sites.
Deal Fanatic
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Dec 1, 2004
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Trudope and our country, is running out of money, we need to pay more tax
STEAM-XBL-PSN: CFRTim
Deal Addict
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Jun 16, 2009
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CFRTim wrote: Trudope and our country, is running out of money, we need to pay more tax
Covid is costly. Plus now the provinces want the Feds to foot more of their bills for covid costs. This tax will be a drop in the bucket, but the money's going to have to start coming from somewhere.
c'mon get happy!
Deal Addict
Dec 5, 2010
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Montreal
Quebec always does things differently reason we are usually excluded for many things lol
Deal Addict
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Mar 17, 2006
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BernardRyder wrote: Covid is costly. Plus now the provinces want the Feds to foot more of their bills for covid costs. This tax will be a drop in the bucket, but the money's going to have to start coming from somewhere.
I worked through COVID and didn’t collect any money from anyone. Can you tell me why we should be paying even more taxes?
CPU: Intel i7-7700K @4.5GHz | GPU: GeForce GTX 1080 | RAM: ADATA XPG DDR4 3000MHz 24GB | SSD: WD Black 512GB NVMe | Mobo: ASUS STRIX Z270E | Case: COUGAR PANZER | Cooler: CORSAIR Hydro Series H110 |Monitor: 2 x HP 27es 27" IPS LCD
Deal Addict
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Jun 16, 2009
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Sejad wrote: I worked through COVID and didn’t collect any money from anyone. Can you tell me why we should be paying even more taxes?
My only answer is YOU didn't collect any more, but Canada has millions more people that yourself, many of whom are being affected in ways more significant apart from paying a Netflix tax hike. Also, the way any developed country's tax systems work is you can't simply opt out of paying things based on your perceived individualistic ideas. We're a country, not a collection of fiefdoms.

If you want me to be accountable for the tax hike, or try to place me in a logical dead end to prove a point, I won't go there. I don't think the hike is great or fair either as these are multi-billion dollar entertainment companies, maybe they should foot the bill considering Netflix just hiked their prices. But it is also a move typical of ANY developed country. That's all I want to say before the thread gets locked for being too political.
c'mon get happy!
Deal Addict
Feb 16, 2018
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Sejad wrote: I worked through COVID and didn’t collect any money from anyone. Can you tell me why we should be paying even more taxes?
The reason for more taxes is obvious. You may not like it but it is what it is. You are subsidizing those that needed to receive funding or helping to pay the the governments cost to combat COVID via higher taxes.

No different than other people subsidizing government services that you use and they don't or that you use a lot more of compared to them. Schools, Public Transport, Roads, libraries, parks,utilities, health care and a ton of other things.

Unless of course you are going to claim have never seen a Doctor, gone to school, used the roads, used a library, been in a park, used public transport, and have always lived off the grid etc etc etc
Deal Addict
Nov 29, 2011
1993 posts
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Toronto
We all knew this was eventually going to happen. It sucks, but it did not make sense that "non-essential" digital purchases were tax exempt. Netflix and PSN is not equivalent of groceries, medications or education services.

The only reason it did not happen sooner is because the federal Liberals (and Conservatives before them) did not want to lose political capital on this relatively small tax.
Deal Addict
Aug 25, 2015
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Montreal, QC
Caerus wrote: Well on the Switch eshop anyway, I'm pretty sure myself and every single other person in Canada lives in Alberta! Smiling Face With Open Mouth And Smiling Eyes
Nintendo eShop, well, we can always buy from out of country since games are mostly region free and plenty of deals are be had in say Argentina
Deal Fanatic
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Dec 6, 2006
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tinlun wrote: Simple...Just don't buy from Canadian PSN or Nintendo eshop. Buying international psn card or Nintendo eshop cards isn't that complicated.
My understanding is that the individual transactions will be taxed, not the prepaid cards. If you mean you will buy codes for games from other regions to redeem that is different.

Currently if you buy a Nintendo or PSN card for $X the cards/codes are not taxed. When you then use those funds to buy a Nintendo eshop game you pay tax but the PSN game you do not. That is what will probably change. That PSN purchase, like the Nintendo purchase will be taxed.
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May 14, 2010
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Summerland
When in 2021 will this take effect?

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