PlayStation Store Purchases Will Charge Tax in Canada in 2021

PlayStation fans in Canada have been just as excited about the recent PlayStation 5 console launch as any other country, but some bad news may kill some of that hype. Based on a new law set to be enforced in 2021, PlayStation users in Canada will need to prepare to take a bigger hit to their wallets when using the PlayStation Store.

Despite Canadian gamers already needing to pay more money for their video games, with next-gen titles like Demon’s Souls costing $90, it appears that those prices will soon become even heftier. A new Canadian law reported on by WCCFTech ensures that “starting next year everyone selling goods in Canada… will have to start charging sales tax.” While PlayStation customers were previously exempt from the tax, that is set to change at the beginning of next year.

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The new law eliminates a previous workaround where companies needed to have a physical presence in Canada for sales tax to be charged. With Sony having no physical presence, the loophole had allowed for tax-free PlayStation Store purchases. Unfortunately, that will soon be coming to an end, making the latest PlayStation Store tax change particularly disappointing for Canadian gamers. With this saving grace gone, buy-in prices for next-gen games in Canada could easily cross $100.

According to WCCFTech, the tax will range from 5 to 15 percent “depending on which province you happen to live in.” Players unfortunate enough to live in the provinces with a 15 percent sales tax rate will be paying an extra $14 for each $90 game, a steep step up from the previous $0 that was taken by the Canadian government. While the money will supposedly be put toward the good cause of a better childcare system, gamers in Canada will likely still dislike the PlayStation Store change.

With the tax increase coming sooner rather than later, Canadian fans may want to pre-order next year’s games immediately. Purchasing any currently released games throughout December could save money down the road, making use of the tax-free period before 2021 begins. Thankfully, the PlayStation Store offers numerous sales throughout December, such as the “End of the Year” sale that lowers the prices on some of 2020’s best video games. With games like Resident Evil 2 and Death Stranding cheaper than ever, snagging them before the sales tax increase would be a wise idea.

With Best Buy Canada recently calling out Sony for PlayStation 5 delivery delays, it seems like Canadian gamers cannot catch a break. Hopefully, some good PlayStation-related news comes soon, as the platform’s loyal fanbase in Canada is only staring down heavily increased prices for 2021 thus far.

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Source: CBC via Wffctech

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