British Columbia has recently published three new PST bulletins (Bulletin PST 140, “Funerals”,Bulletin PST 209, “Exemption for Prototypes” and Bulletin 401, “PST Refunds on PAC-funded Purchases”) and revised two previously issued bulletins (Bulletin PST 112, “Logging” and Bulletin PST 302, “Delivery Charges”) to assist businesses deal with the provincial sales tax (“PST”).
Bulletin PST 112, “Logging” was revised to clarify how to calculate the depreciated value for purposes of self-assessing PST on a change in use. Where the depreciation rates were previously based on a month, the updated bulletin now refers to a 30-day period. Also, the section on equipment brought into BC has been reworded to include all goods brought into the province.
Businesses in the funeral industry (e.g. funeral homes, memorial parks, memorial dealers, crematoriums, undertakers and morticians) may refer to the recently issued Bulletin PST 140, “Funerals” to better understand how PST applies to their operations. Only businesses which supply taxable goods or services in the province must register for PST. This bulletin notes that many services provided by these businesses are exempt from PST. In addition, the sale of real property, including burial plots and cemetery plot transfers, are not subject to PST.
A new bulletin regarding prototypes has been issued. Bulletin PST 209, “Exemption for Prototypes” explains that exemption from PST applies to the first full-scale functional form of a new type or new construction of tangible personal property, not including software (unless attached to or incorporated into the prototype) or real property improvements. The document also discusses how and when PST must be calculated and self-assessed when there is a change in use of the prototype.
Bulletin PST 302, “Delivery Charges” was updated to highlight that:
- PST does not apply to delivery/transportation charges for PST-exempt goods; and
- delivery/transportation charges on taxable goods purchased from a BC supplier where title passes to the purchaser at the seller’s premises are exempt from PST (the supplier must show any delivery charges separately on the sales invoice for this exemption to apply, otherwise PST will apply to the full amount charged to the customer).
Bulletin PST 401, “PST Refunds on PAC-Funded Purchases” will be of interest to parents’ advisory councils (PACs), which may be eligible for a PST refund on purchases of certain goods and software.