PlayStation store canada sales tax

Canadian PSN Users to Start Paying Sales Tax on Digital Purchases Next Year

Canadian PlayStation fans have been able to enjoy both a helpful Walmart Twitter account and tax free PSN purchases for a very long time. Unfortunately, one of those is about to come to an end. PSN sales tax in Canada will soon be a grim reality.

Starting in 2021, all digital purchases for Canadians will be subject to sales tax. Digital purchases had previously been sales tax exempt if the seller didn’t have a business arm in a Canadian territory. So while both Nintendo and Microsoft digital purchases had been triggering sales tax, PlayStation was not.

Well, the loophole is about to close. A budget plan to fund Canada’s new child-care system efforts is scheduled to be enacted on June 1, 2021. The effort comes after stress caused by the COVID-19 pandemic. All digital products, like Netflix , online gift cards, and PlayStation Store purchases, will be subject to sales tax regardless of where the company is headquartered. This means more money on already inflated Canadian prices on imported goods.

While this tax bug won’t bite me personally, my home state in the U.S. underwent this same transition back in 2017. My state instituted this change in an effort to increase tax revenue. Everything I bought online started getting taxed, and I was pretty bummed about it. I never got used to paying sales tax on Amazon, PlayStation Network, or my Netflix subscriptions. At least in Canada, the tax money is for the kids.

So to all of our Canadian readers, tally up whatever you’ve been eyeballing, prioritize your wishlist, and get ready to do some buying. With the current PSN End Of Year Sale, there’s bound to be a game or two you could pick up for a really good price. Now’s as good a time as any. Next June certainly will not be.