News and Insights

Saskatachewan PST Rulings and the Taxation of Used Goods

Tax Development May 31, 2013

Saskatchewan (“SK”) made changes to the Provincial Sales Tax (“PST”) rulings document by updating the following four sections:

  • 12.6 - Freight Charges On Partially Tax Paid Equipment, which refers to the taxes payable on freight charges incurred to bring equipment, vehicles or tools into the province;
  • 23.2 - Dietary Tablets, Powders and Liquids, explaining the products that are taxable and non-taxable in this particular category;
  • 124.0 - Commercial Building Cleaning Services, addressing the taxability of restoration and cleaning services, odour control, mold restoration and post-construction clean up; and
  • 131.0 - Taxes Payable by Other Governments which explains when governments are taxed on their purchases.

SK PST Rulings

In addition, Information Bulletin PST-58, “Information on the Taxation of Used Goods”, has been updated with additional details on the application of tax to the sale of used goods under various situations, including:

  • Business assets, including:
    • sale of used assets and trade-in implications;
    • sale of assets when a business ceases operations; and
    • transfer of assets between closely related parties;
  • Trade-in allowances;
  • Personal and farm use goods;
  • Rental of used goods; and
  • Vehicles, including privately used vehicle purchases.

SK PST 58