News and Insights

British Columbia Releases Production Machinery and Equipment Exemption Certificate

Tax Development Mar 21, 2013

British Columbia has issued the certificate of exemption to be used for exempt purchases or leases of eligible production machinery and equipment. Purchasers must certify that one of the following situations pertains to the transaction in question:

  • They are a manufacturer;
  • They regularly engage in logging for commercial purposes;
  • They regularly engage in exploration or discovery of petroleum or natural gas, or of coal or mineral deposits for commercial purposes;
  • They represent a local government or eligible local government corporation that qualifies for the production machinery and equipment exemption for power generation activities;
  • They are an oil and gas producer;
  • They are a software developer;
  • They are a mine operator; or
  • They are a service provider to a manufacturer, oil and gas producer, or mine operator and that the production machinery, equipment, parts, materials or related services noted are obtained for an exempt purpose.

The definitions for the terms used above are in accordance with the definitions included in the Provincial Sales Tax Act (“PSTA”).  Thus, a purchaser must ensure that they consult the PSTA to determine if they qualify to use this certificate.

BC FIN492