In keeping with its promise to provide taxpayers with information regarding the re-implementation of PST in British Columbia, the province issued Provincial Sales Tax (PST) Bulletin 002, “Charging, Collecting and Remitting PST”. This bulletin contains relevant information for businesses required to charge, collect and remit PST, effective April 1, 2013.
While much of the information contained in this bulletin is similar to the requirements which existed under the former Social Service Tax, there are some changes worth noting:
Charging and Collecting PST
PST must be collected at the time that the tax becomes payable, which is often the date it is invoiced. However, much like the timing of liability override rule for GST/HST purposes, PST may be payable on the last day of the month following the month in which certain transactions are made, even if the invoice has not been paid or has not become payable. Additional information on this issue is addressed in our recent Ryan Tax Development - Transitional Rules for the New British Columbia PST.
Reporting and Remitting PST
Returns and remittances are now due by the last day of the month following a reporting period, rather than the 23rd day of the month following a reporting period.
Exemptions Requiring Supporting Documentation
Registered customers may be entitled to an exemption for resale purchases where a PST exemption number is provided to a supplier and the number is recorded on the invoice for the supply. For wholesale customers and vendors who have not yet received a registration number, exemptions may be provided upon receipt of a completed exemption certificate.
Refunding PST to Customers
Where a customer has paid PST in error or because information required to support an exemption was not available at the time of sale, the PST may be refunded or credited to the customer within 180 days from the date when tax was paid.
Other relevant issues addressed in this bulletin include:
- filing and payment options;
- commissions; and
- retaining books and records.