News and Insights

British Columbia Issues Several New Publications Related To The New PST

Tax Development Mar 15, 2013

British Columbia (“BC”) continues to issue notices and bulletins with specific information pertaining to various applications of the new Provincial Sales Tax (“PST”).

Notice 2013-004, “Vehicle Exemptions and Refunds”, discusses the application of the PST on vehicles purchased, leased or received as a gift in BC on or after April 1, 2013.  The tax exemptions described include new residents, gifts to related individuals, gifts to registered charities, prizes, draws and awards, transfers due to dissolution of marriage, transfers to new corporations or between related parties, vehicles purchased for use outside BC, and other exemptions specific to the person acquiring the vehicle.  The notice also provides information on situations where the PST paid on a vehicle might be eligible for a refund, although the refund application form is not yet available.

Notice 2013-006, “Notice to Sellers of Energy Products”, discusses the tax exemptions for residential energy products that will come into effect April 1, 2013.  It also addresses the conclusion of the Residential Energy Credit Program and the re-implementation of the tax on energy products for the financing of the Innovative Clean Energy Fund.

Notice 2013-015, “Notice to Deputy Collectors and Retail Dealers – Propane Inventory”, and Notice 2013-016, “Notice to BC Wholesale Dealers – New Tobacco Tax Rates” plus the related forms, were issued in order to provide guidance on the responsibilities of these businesses to take an inventory of unsold stock on March 31, 2013, submit the required form and pay the applicable security.

Bulletin PST 133, “Manufactured Buildings”, will be of interest to anyone involved in the sale or lease of mobile homes, manufactured modular homes or portable buildings.

Bulletin PST 301, “Related Services”, replaces Notice 2012-16, “Related Services”, and provides some additional clarification to this complicated subject.  A lengthier list of exemptions is provided, with several new references made to bulletins that have yet to be released.

Three other bulletins were issued specifically listing items within three categories of goods for which the permanent exemptions that existed under the Social Service Tax will be in effect for the new PST.  The bulletins provide detailed lists of items that are exempt and those that are not included in the exemptions:

Bulletin PST 100, “Safety Equipment & Protective Clothing

Bulletin PST 201, “Children’s Clothing and Footwear
Bulletin PST 204, “Bicycles and Tricycles