British Columbia has updated Bulletin PST 107, “Telecommunication Services” with the addition of a section on web design services. Web design services generally mean developing and organizing content on one or many web pages to create a website, and may include other related services.
Where software, a telecommunication service or goods are not included along with the web design services, Provincial Sales Tax (“PST”) does not apply. However, where any of these additional supplies are provided, PST will apply on the separate charges. For example, where a customer is charged $500 for web design services and $25 for providing the website on a USB drive, PST will apply on $25.
Where a single price is charged for web design services and software, telecommunication services or goods, PST may not apply if these are incidental to the supply of the web design services. In order to be considered incidental, the related supply must not be the fundamental objective of the contract, and the charge, with or without the additional supply, would only be marginally different. If the software, telecommunication services or goods are not considered incidental to the supply of web design services, and a single price is being charged, the entire amount may be taxable for PST purposes.