British Columbia (“BC”) has updated Provincial Sales Tax (“PST”) Bulletin 002 by adding information on electronic filing and payment, as well as including some additional details in several sections throughout the document.
Electronic Filing and Payment
Consistent with the requirements for GST/HST, businesses with more than $1.5 million in total annual Canadian sales and leases will be required to file tax returns, and remit PST, electronically or be subject to a penalty. Returns can be filed, and payments can be made, electronically by using either eTaxBC or your financial institution’s (“FI”) payment and filing service. Payments can be made using the same resources or via your FI’s online banking service or EFT.
Municipal and Regional District Tax
The reference to Bulletin MRDT 002, "Municipal and Regional District Tax: Information for Accommodation Providers” has been changed to Notice 2012-023, “Municipal and Regional District Tax.”
Reporting and Remitting PST
A statement addressing the consequence of failing to remit PST on or before the due date has been added, and indicates that commission will not be available on the amount and registrants may be subject to a penalty and interest.
The case in which a business’ accounting periods do not correspond with calendar months is raised in the revision. The province has indicated that once a business is registered, they may request reporting periods that align with their accounting periods. More information may be obtained by contacting the province.
Filing and Payment Options
Internet banking has been updated to include the possibility of using a payment and filing service made available by your FI.
A clarification was made regarding commissions with the statement that commission is not payable for the collection of the Municipal and Regional District Tax, to be reported separately from the PST.
Exemptions Requiring Supporting Documentation
BC has provided more details on the procedures to be followed upon granting an exemption of the PST to a customer. In cases where a bill, invoice or receipt is issued, a vendor is required to include the registration number provided by the customer on the document issued. In addition, where a written agreement is entered into related to the transaction, the customer’s PST number may be included on the written agreement.
Retaining Books and Records
The list of details required to be maintained in books and records was updated to include all tax “charged” and to make reference to taxable “software”, alongside goods and services in the bullet point addressing records required for exempt sales.