British Columbia has issued these new notices to provide information on the circumstances where provincial sales tax (PST) and hotel room tax (HRT) are payable during the transition period to HST in the province. The general transitional rules relate to the winding down of the provincial sales tax and hotel room tax, which will be eliminated to coincide with the implementation of HST. These transitional rules are provided to avoid the imposition of PST or HRT on payments of goods or services where HST will apply.
For the supplies of most goods, where tangible personal property is delivered or ownership is transferred before July 1, 2010, PST applies to the full purchase price. When tangible personal property is delivered and ownership is transferred on or after July 1, 2010, PST applies to any amount of the purchase price that becomes due or is paid before May 1, 2010. For taxable services, where 90% or more of the service is performed before July 1, 2010, PST will apply.
Hotel room tax currently applies to short-term accommodation. Supplies of short term rental accommodation under the HST are considered a lease and therefore, the transitional rules for the HRT are based on HST transitional rules for leases. Generally, the HRT applies to the purchase of short term accommodation provided before July 1, 2010.
BC HST Notice No 8
BC HST Notice No 9