British Columbia Provides Clarifications on the Application of PST

British Columbia Finance has recently made some minor updates to a few bulletins in order to clarify the application of provincial sales taxes (“PST”) on certain specific products and services.

Bulletin MFT-CT 005, “Tax Rates on Fuels” was updated with an additional note stating that the applicable tax rates for motor fuel tax and carbon tax on ethanol are the same rates applicable to gasoline, and biodiesel is taxed at the same rates as diesel. 

Bulletin PST 315, “Rentals and Leases of Goods” was revised to explain that charges billed to a customer for the maintenance or service of leased goods are considered to form part of the lease price subject to PST.  For example, charges for the weekly cleaning of rented uniforms are taxable, just as the rental of the uniforms is taxable.  In addition, BC took the opportunity to add a couple other examples to the list of taxable items, including reference to coveralls and various examples of goods leased by party supply stores.

Bulletin PST 304, “Thrift Stores, Service Clubs, Charitable Organizations and Societies” now stipulates that admission tickets sold for events by these organizations, such as fundraising galas or dinners, are not subject to PST.  An additional notation alerts registrants and consumers to the fact that certain school supplies are exempt, pointing to a separate bulletin on the matter.  The bulletin also makes references to several other new bulletins that may be of interest to such organizations.