Provincial Sales Tax Rates in BC
PST Filing is Now Online at eTaxBC ...

by L. Kenway BComm CPB Retired

PST rates in BC returned to pre-July 1, 2010 rates with some tinkering from modernizing the tax administration system.

One important change is that PST is no longer just one set rate. It rate now varies between 7% and 12%.

In this chat, I'm presenting the PST tax rates that became effective on April 1, 2013 along with:

• what's taxable and what's not reference list to download that includes the applicable GST & PST rates;
  
• a summary with links to all the announcements;
• travel and transportation; and
• an overview of the transitional rules.

I've presented many things in table format to make it easier for you (and me) 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 looking for information on shipping out of province, tax tips.ca has an excellent article on this.

2013 BC PST Rates
Effective April 1, 2013

Items	PST Rates	Reference
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
Accommodation 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

BC RETURNS TO PST

Summary of Announcements
click on link for more information

Click here for links to Certificates of Exemption by Industry AND PST forms that have been released.

GST/HST Notice	Title
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 004	Direct Sellers and Independent Sales Contractors
Bulletin PST 005	Buying and Selling a Business
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.

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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 3% (2% prior to 2015) 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

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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%
Continental USA	5%	5%	5%
International	0%	0%	0%

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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.

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THE BOOKKEEPER'S NOTES ON

Transitional Rules Overview
You'll Need This For Backwork

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:

1. Tangible personal property (TPP) - goods you can physically touch and bought for personal or commercial use.
   
2. Real property - real estate such as land, buildings of a permanent nature, and any interest in real property; also includes previously occupied homes.
3. Services - labor excluding any physical goods; related services - services provided to install goods, or maintain and repair goods.
   
4. Intangible personal property (IPP) - items that you cannot physically touch like trademarks, licenses, copyrights, industrial designs, rights to use a patent, intellectual property, digitized products downloaded from the Internet. (See PST treatment of software below.)
   

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; GST only
Lease / rent of real property due	HST	No PST; GST only
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:

• HST has not been paid on purchase price of new housing
• Ownership and possession transfers after March 31, 2013 AND before April 1, 2015
  
• At least 10% of property constructed before April 1, 2013

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 Transition Tax	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.

Bookkeeping Essentials › GST-HST › PST Rates