The province has issued this notice to social service tax vendors and lessors to address questions that businesses in British Columbia continue to have regarding the transition out of PST as a result of the implementation of HST, which was effective July 1, 2010. Vendors are no longer required to pay PST on goods or services acquired for use in their businesses, or self-assess PST on goods brought into the province for use in their business. Businesses will generally pay HST at 12% on most goods and services and in most cases, be entitled to input tax credits for the full 12% HST (5% federal component and 7% provincial component).
Vendors are reminded that all PST not otherwise payable on an earlier date is payable and must be collected by December 31, 2010. All supplemental returns must be filed on or before January 23, 2011.
In addition, vendors may be eligible to claim a refund of PST paid to customers on returned goods, services that have been cancelled or on goods or services where the price has subsequently been reduced. Vendors have a limited time to apply for these refunds, as outlined in the previously released Notice 2010-012.
BC Notice 2010-014