Facts: Hootsuite Inc. appealed the Minister of Finance’s determination that cloud computing products were software programs for use on a computer in British Columbia, thus subject to PST. The assessment involved services purchased from Amazon Web Services (AWS), including cloud compute (EC2), storage services (S3), direct connect, and support.
Issues: Whether cloud computing services provided by AWS to Hootsuite constitute taxable software programs under the Provincial Sales Tax Act (PSTA) of British Columbia.
Ruling: The court concluded that AWS services are not taxable under the PSTA. It was determined that the fundamental nature of the AWS services was for technical expertise, not the acquisition of a software program or telecommunication service. The services did contain telecommunication services but were exempt under the incidental exemption clause.
Amount Awarded: Not applicable as the case concerned the taxability of services under the PSTA, not damages awarded.
