In October 2013, British Columbia (“BC”) amended certain sections of the Provincial Sales Tax Exemption and Refund Regulation (“PSTERR”) retroactive to April 1, 2013.
BC has taken this opportunity to update the following bulletins for these amendments, along with some clarifications:
Bulletin PST 106 “Legal Services”
- changes to the regulation include exemptions on the acquisition of legal services by providers of legal services; and ·
- clarifications on the application of PST to disbursements, fees and charges.
Bulletin PST 107 “Telecommunication Services”
- changes to the regulations caused minor amendments to the exemption for
- toll-free numbers (still exempt for businesses, but not for family or domestic use); and
- educational exemptions (exempt when provided to participants in exempt programs/activities).
Bulletin PST 128, “Nurseries and Garden Stores”
- changes to the regulation affected certain garden related substances – these are now exempt when purchased by an individual or for an agricultural purpose; and
- minor changes to the list of taxable items.
Bulletin PST 200, “PST Exemptions and Documentation Requirements”
- regulation amendments incorporated:
- yarn, fibres and threads “commonly used in making or repairing clothing” as exempt;
- related services on service contracts and maintenance agreements were added as exempt but related services to software was removed from the table;
- changes to First Nation exemptions (see Bulletin PST 314 below);
- addition of an exemption for goods bought at a duty free shop by a person who is about to exit Canada; and
- other changes include the addition of tables for gifts/prizes, accommodation, legal services and telecommunication services as well as a table for goods provided on a continuous basis (by wire, pipeline, etc.) in conjunction with the use of real property or moorage facilities.
Bulletin PST 203, “Energy and Energy Conservation”
- additions to residential energy products: butane, naphtha and methanol as a result of changes to the regulations.
Bulletin PST 206, “Grocery and Drug Stores”
- as mentioned in PST Bulletin PST 128 above, certain substances are now exempt when acquired by an individual or for an agricultural purpose; and
- along with other minor changes to the lists for taxable and exempt items, perlite and vermiculite have been removed from the list of taxable items (they are now exempt when acquired by an individual or for agricultural purpose).
Bulletin PST 314, “Exemptions for First Nations”
- the regulation now includes exemptions for software and telecommunication services “purchased for use on or with an electronic device that is owned or leased by the First Nation individual or band and is ordinarily situated on First Nation land”.