The province of Saskatchewan (“SK”) has issued Information Bulletin PST-72, “Information for Rental Businesses” with details concerning the application of provincial sales tax (“PST”) to rentals of tangible personal property and real property, as well as associated sales and services. At the same time, Information Bulletin PST-46, “Information for Service Enterprises” has been significantly updated.
Information Bulletin PST-72 begins with general information and proceeds to provide details related to specific scenarios a rental business may encounter. Each scenario lays out the application of PST on invoices being issued by the rental business as well as the application of PST on purchases made by the rental business. In addition, the province outlines what documentation is required to support a PST exemption when one is available.
The following scenarios are included:
The update to Information Bulletin PST-46, provides additional information to service enterprises, with more examples and new sections added to the bulletin. Interestingly, the list of taxable services has been pushed to the end; however, the province has added a reference to the relevant bulletin for each taxable service identified. A few additional examples of non-taxable services have been included such as disposal services, limousine services and towing services. Furthermore, the bulletin now has sections addressing consulting services, training services and transportation services. Due to the fact that these services are typically non-taxable in nature, it is therefore important to note the factors that can cause PST to apply when they are supplied.