Invoice Requirements, Bulletin & Notice Index, Reporting Transition Tax
PST Rates (vary 7%-12%)
Executive Summaries of PST Notices & Bulletins
PST rates in BC return to pre-July 1, 2010 rates with some tinkering from modernizing the tax administration system.
PST is no longer just one set rate. It rate now varies between 7% and 12%.
What you will find in this chat ...
I'm going to present the PST tax rates that will be effective on April 1, 2013 along with:
I've presented many things in table format to make it easier for you to reference.
If you are looking for a list sales tax rates (PST, GST and HST) for other provinces / territories in Canada, click here for a summary table.
If you are wondering what the invoicing requirements are regarding the PST rates, remember your invoice MUST list the PST and GST seperately. It cannot be combined into one rate. PST agreements, receipt, invoice requirements are:
See Part 7 Tax Collection; Division 5 Receipts; sections 84 through 87 for more detailed PST invoice requirements.
If you are looking for information on shipping out of province, tax tips.ca has an excellent article on this.
|Goods & Related Services; including software||7%||PST Bulletin 301; Notice 2012-010|
|Legal & Telecommunication Services||7%||PST Bulletin 107; Notice 2012-010&018|
|Alcohol||10%||PST Notice 2012-009,010,017|
previously Hotel Room Tax (HRT)
|8%||PST Notice 010|
|Passenger Vehicles Less Than $55,000||7%||PST Bulletin 308; Notice 2012-012 & 2013-002&004|
|Passenger Vehicles $55,000-$55,999||8%||PST Bulletin 308; Notice 2012-012 & 2013-002&004|
|Passenger Vehicles $56,000-$56,999||9%||PST Bulletin 308; Notice 2012-012 & 2013-002&004|
|Passenger Vehicles $57,000 plus||10%||PST Bulletin 308; Notice 2012-012 & 2013-002&004|
|Other motor vehicles and trailers||7%||PST Bulletin 308; Notice 2012-010 & 2013-002&004|
|Vehicle, boats and aircraft acquired from private individuals or non GST registrants (purchased or received as a gift)||12%||PST Bulletin 308; Notice 2012-010 & 2013-002&004|
|Leases (including motor vehicles leases) inside B.C.||7%||PST Notice 2012-010 & 2013-002|
|Leases outside of BC (including motor vehicles leases) that are registered for use in BC||7%||PST Notice 2012-010 & 2013-002|
|Certain manufactured mobile homes||7% of 50% of purchase price||PST Notice 2012-011 & Bulletin PST 133|
|Certain manufactured modular homes||7% of 50% of purchase price||PST Notice 2012-011 & Bulletin PST 133|
|Public transportation networks||exempt||PST Notice 2012-011|
|Items||Other Tax Rates||Reference|
|Passenger Vehicle Rental Tax (PVRT)||$1.50 / day for more than 8 hours and less than 28 consecutive days||PST Notice 2012-010 & 012|
|Multijurisdictional Vehicle Tax (MJVT)||Applies to inter-jurisdictional commercial carriers. It will be re-implemented but rate has not been announced yet||PST Notice 2012-010 & Bulletin 135|
|Innovative Clean Energy Fund (ICE)||0.4% on energy products excluding electricity||PST Notice 2012-010 & Notice 2013-006|
|Propane purchasers||2.7 cents per litre||PST Notice 2012-015|
Here's a pdf listing of what is taxable and what's not and keep it as a handy reference to refer to while updating your price lists and tax tables in your accounting software and cash registers.
It breaks down taxable items along with the applicable HST, GST and PST rates into three time periods:
Effective April 1, 2013, you will have to show two tax rates again ... the PST and GST. You cannot merge them into one amount.
This also means you will have to file two sales tax returns instead of one. The PST reports will now be due at the same time as the GST reports which is a bonus.
Unlike HST which only taxes at the consumer/retail level, PST is levied on production as well as consumption ... which means consumers pay tax upon tax upon tax ... however many stages it takes to get the product to market. These "hidden" taxes are passed onto the consumer in the sale price.
Click here for links to Certificates of Exemption by Industry AND PST forms that have been released.
|Dept of Finance Canada||Proposed Transitional Rules|
|GST/HST Notice 270||Elimination of the HST in BC in 2013 - Q&A|
|GST/HST Notice 272||HST - Proposed Enhancements to the BC New Housing Rebates & New Residential Rental Property Rebates|
|GST/HST Notice 276 (Revised May 2013)||Elimination of the HST in BC in 2013 - Transitional Rules for Real Property Including New Housing|
|BC HST Notice 12||Enhanced New Housing Rebated & Transitional Rules for the Re-implementation of the BC PST|
|BC HST Notice 13||Grant for Purchasers of New Residential Housing Used as a Secondary or Recreational Property|
|Information Bulletin 2012FIN0044-001561||New tools help BC Business prepare for PST return|
|Information Bulletin 2012FIN0052-001835||Free PST Webinar For BC Businesses|
|Information Bulletin 2012FIN0042-001368||Summary of Interim Recommendations by Expert Panel|
|GST/HST Info Sheet GI-132||Elimination of the HST in BC: Builder Information Requirements for the Transition Period|
|GST/HST Info Sheet GI-156||Elimination of the HST in BC: Transition Tax on New Housing|
|GST/HST Info Sheet GI-157||Elimination of the HST in BC: Transition Rebate for Builders of New Housing|
PST Bulletins in the 100 series are industry specific; 200 series relate to exemptions; 300 series relate to applications of tax.
MFT = Motor Fuel Tax Act
|BC PST Bulletin / Legislation & Regulations||Title|
|Draft New Tax Act||Bill 2 - PST Transitional Provisions and Amendments Act 2013|
|New Tax Act||Unofficial Consolidation|
|Old Tax Act||SST Act|
|Permanent List||PST Exemptions|
|Tax List||What's Taxable and What's Not|
|Final Report||Recommendations by Expert Panel|
|Bulletin PST 001||Registering to Collect PST (includes who has to register, how to register)|
|Bulletin PST 002||Charging, Collecting, Reporting & Remitting PST - REVISED|
|Bulletin PST 003||Small Sellers|
|Bulletin PST 100||Safety Equipment and Protective Clothing|
|Bulletin PST 101||Farmers|
|Bulletin PST 102||Commercial Fishers|
|Bulletin PST 103||Aquaculturists|
|Bulletin PST 104||Real Property Contractors|
|Bulletin PST 105 previously PST Notice 2012-024||Software - defines an electronic device; deals with self assessment of PST on SaaS|
|Bulletin PST 106 previously PST Notice 2012-014||Legal Services|
|Bulletin PST 107 previously PST Notice 2012-018||Telecommunication Services - DIGITAL downloads and viewing such as eBooks, webinars, iTunes and Netflix are discussed|
|Bulletin PST 110||Production Machinery and Equipment Exemption|
|Bulletin PST 133||Manufactured Buildings|
|Bulletin PST 135||Multijurisdictional Vehicles|
|Bulletin PST 201||Safety Equipment and Protective Clothing Children's Clothing and Footwear|
|Bulletin PST 202||School Supplies|
|Bulletin PST 203||Energy and Energy Conservation|
|Bulletin PST 204||Bicycles and Tricycles|
|Bulletin PST 205||Books, Magazines, Newspapers and Other Publications|
|Bulletin PST 206||Grocery and Drug Stores|
|Bulletin PST 207||Medical Supplies and Equipment|
|Bulletin PST 300||Special Occassion Liquor Licences|
|Bulletin PST 301 previously PST Notice 2012-016||Related Services - services provided to tangible personal property (goods)|
|Bulletin PST 302||Delivery Charges & Damaged Goods in Transit|
|Bulletin PST 304||Thrift Stores, Service Clubs, Charitable Organizations and Socities|
|Bulletin PST 308||Vehicles|
|Bulletin MFT-CT001||Fuel Sellers|
|Bulletin MFT-CT002||Status Indians and Indian Bands, and Exempt Fuel Retailer Program|
|BC PST Notice||Title|
|PST Notice 2012-009||Liquor Vendors - see also Notice 017|
|PST Notice 2012-010||General Transitional Rules for the Re-implemenation of the PST; includes PST rates|
|PST Notice 2012-011||Purchases of Tangible Personal Property (Goods) in BC; includes PST rates|
|PST Notice 2012-012||Leases of Tangible Personal Property (Goods); includes PST rates|
|PST Notice 2012-013||Tangible Personal Property (Goods) Brought Into BC|
|PST Notice 2012-014 replaced with Bulletin PST 106||Legal Services|
|PST Notice 2012-015 Replaced with Notice 2013-015 and Bulletin MFT 014||Propane Purchasers and Sellers - see also Form FIN 156 Motor Fuel Tax Return, Propane Inventory, April 1, 2013|
|PST Notice 2012-016 replaced with Bulletin PST 301||Related Services - services provided to tangible personal property (goods)|
|PST Notice 2012-017||Restaurant Industry - see also Notice 009|
|PST Notice 2012-018 replaced with Bulletin PST 107||Telecommunication Services - DIGITAL downloads and viewing such as eBooks, webinars, iTunes and Netflix are discussed|
|PST Notice 2012-019 & 2012-021 Replaced with Notice 2013-016||Inventory Reporting Requirements for Tobacco Retail and Wholesale Dealers - see also Form FIN 227 Wholesale Dealers Inventory Return on April 1, 2013|
|PST Notice 2012-022 & 2012-023 replaced with PST and MRDT Guide for Accommodation Providers||Accommodations and MRDT|
|PST Notice 2012-024 replaced with Bulletin PST 105||Software - defines an electronic device|
|PST Notice 2013-002||Vehicles|
|PST Notice 2013-003||Real Property Contractors|
|PST Notice 2013-004||Vehicle Exemptions and Refunds|
|PST Notice 2013-005||Notie to Vehicle Leasing Companies - Transitional Rules for Leases of Vehicles|
|PST Notice 2013-006||Sellers of Energy Products|
|PST Notice 2013-007||Fuel Sellers and Purchasers|
|PST Notice 2013-010||Boat and Aircrafts|
There used to be a great article called "Running Your Home" on the pstinbc.ca or hstinbc.ca. It seems to have gone by the wayside since PST was reimplemented in BC. It was the best source I'd found to determine what is taxable regarding travel, transportation and/or parking issues ... although PST Notice 2012-011 does discuss the issue.
For example, there is no HST on public transportation which includes BC Transit, Translink buses, Skytrain or Seabus. Public transportation will be exempt for PST purposes.
Another example is parking. It does not attract PST but it did attract HST and does attract GST now that we have returned to PST + GST. For those in the metro Vancouver, there is a Translink parking tax but this is not the same as federal or provincial sales tax.
Taxis are also PST exempt so only GST applies.
For hotel rooms, see the following table for the effect of reimplementing PST. It should be noted that the hotel room tax is no longer a separate tax. It has now been incorporated into the PST Act.
There is also a 2% municipal / regional district HRT (hotel room tax) in some communities. It is accounted for and reported separately from your PST accommodation tax.
|Before July 1, 2010||After June 30, 2010||After March 31, 2013|
|5% GST + 8% HRT||12% HST||5% GST + 8% PST|
For airfares PST rates, see the following table for the effect of reimplementing PST vs HST:
|From BC To:||Before July 1, 2010||After June 30, 2010||After March 31, 2013|
|Anywhere in Canada||5%||12%||5%|
Your BASIC cable and residential phone line will be PST exempt ... but speciality channels or long distance calls are not.
Insurance premiums, strata fees, rent, mortgage payments, purchase of previously occupied residential housing are all PST exempt.
PST is not broken into place of supply categories like HST. PST is not as broad based as HST and is assessed by industry as that is how a PST/RST tax works.
Let's review the HST categories which are broken into four general place of supply categories to help make the transition back to PST:
The PST notices released to date do not seem to deal directly with Internet purchases (i.e. IPP) other than software programs (see Notice 2012-024). Notice 2012-018 on telecommunication services does mention that electronic books excluding audio books and live online/streaming webinars will be PST exempt.
Software is being defined by the BC government as "a software program that is delivered or accessed by any means, or the right, whether exercised or not, to use a software program that is delivered or accessed by any means".
|Before Apr 1, 2013||After Mar 31, 2013|
|Purchase of tangible goods||HST||PST + GST|
|Lease of goods due (Excludes real property)||HST||PST + GST|
|Goods brought into BC from inside Canada||HST||PST + GST|
|Goods brought into BC from outside Canada||HST||PST under Customs Act Canada + GST|
|Real property* transfer of ownership or possession||HST||No PST;
|Lease / rent of real property due||HST||No PST;
|Goods used in improvements to real property||HST||PST + GST|
|Services provided in BC paid or due||HST||PST + GST|
|Services provided in NPP to BC paid or due||HST||PST + GST|
|Software programs shipped by land or delivered online||HST||PST + GST|
*An exception is builders and contractors of residential properties. Some transitional rules began April 1, 2012. A 2% BC transition tax may apply. See BC HST Notice 12.
The 2% BC transition tax applies to new housing when all of the following apply:
The BC transitional tax is payable by the purchaser.
Used residential housing is not affected by this transition. Only new homes or substantially renovated homes are affected by the transition.
I THINK (as in not sure) this is what the new rules are saying ...
|After Mar 31, 2013||Before Apr 1, 2013||2% BC
|BC HST Rebate Applies?|
|Ownership and possession||no PST; GST only||HST||no||yes|
|Ownership / agreement dated before April 1, 2013 not possession on presold and new residential property||HST paid||no||yes|
|Ownership / agreement dated before April 1, 2015 on presold and new residential property||no PST; GST only||HST not paid||yes if 10% or more completed by April 1, 2013||no|
|Ownership / agreement dated after April 1, 2015 on presold and new residential property||no PST; GST only|
|Builder retains ownership and rents property||no PST; GST only||HST paid||yes||yes|
The BC New Home tax calculator embeds the 2% BC Transitional Tax rules into the purchase price before it calculates GST/HST & PTT.
You report the transitional tax (and rebate) on Schedule A of Form GST34.
I hope you find my PST rates summary table along with the other summaries a useful resource.
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