PST Exemption Available for Goods Shipped Out of British Columbia By a Purchaser

British Columbia has introduced a new Provincial Sales Tax (PST) exemption that allows eligible purchasers to receive qualifying goods tax-free at the point of sale when those goods are shipped out of the province for commercial use. Businesses and vendors must meet specific documentation requirements, including completing the appropriate exemption certificates and retaining supporting export records. 

New PST Exemption for Goods Shipped Out of British Columbia 

The 2026 British Columbia budget announced an amendment to the Provincial Sales Tax Act (PTSA) that allows a vendor to grant a point-of-sale exemption to a business purchasing goods that will be removed from British Columbia, either by itself or a third party, for commercial use outside the province. The goods must not be used within British Columbia, other than in storage or shipping. 

Purchaser Documentation Requirements 

To obtain the PST exemption, a purchaser should complete and provide form FIN 464, Certificate of Exemption - Goods Shipped Out of B.C. by the Purchaser, to the vendor where the goods will be shipped outside the province. Vendors should retain form FIN 464 to support any exemptions provided under the new provision in the event of a PST audit. 

Vendor-Shipped Goods and Supporting Records 

Additionally, a supply of goods is exempt when a supplier is shipping the purchased goods to a location outside British Columbia, provided the goods are not used, other than in storage provided by the vendor, while in the province. The PST exemption, in this circumstance, should be supported by the retention of appropriate documentation verifying the exportation of the goods, which can include a bill of lading, a shipping invoice, or similar documents. A vendor may also complete optional form FIN 462, Out-of-Province Delivery Exemption, to assist in identifying goods that will be delivered outside British Columbia; however, the form must be accompanied by the supporting documentation listed above to substantiate the exemption.  

Updated Provincial Guidance 

The province has updated several information bulletins and webpages to reflect the new exemption.  

How Ryan TaxDirect® Can Help 

Navigating evolving indirect tax measures requires clarity and timely insight. Ryan TaxDirect® provides businesses with access to experienced tax professionals who can help interpret legislative changes, assess compliance impacts, and identify strategic opportunities arising from new measures.  

If you have any questions about how the British Columbia PST exemption for goods shipped out of the province by the purchaser may affect your organization, connect with our team through Ryan TaxDirect® to discuss next steps.