British Columbia Issues Information Bulletin for Caterers, Event Planners and Party Supply Stores 

A new bulletin has been issued by British Columbia (“BC”).  Bulletin PST 122, “Caterers, Event Planners and Party Supply Stores”, explains how the Provincial Sales Tax (“PST”) applies to sales and purchases made by caterers and event planners.  It also addresses the tax status of party supplies sold and services that may accompany those sales.

The province has tried to address each scenario that a supplier of catering or event planning services might face and explained how the PST applies on either side of the transaction.  For instance, the bulletin explains that catering services, event planning services and food are not subject to PST, however, the sale or lease of taxable goods, whether or not associated with the non-taxable services, are subject to PST.  It also contains information on taxable business assets purchased by such businesses and which purchases would qualify for exemption from PST. 

Having been prepared in a straightforward fashion, guidance on the application of PST has been illustrated for the following circumstances: 

• When Are Goods Sold or Leased; 
• Charging PST on Goods; 
• When Not to Charge PST on Goods; 
• Goods Supplied with an Operator; 
• Related Services; 
• Accommodation; 
• Photography and Videography Services; 
• Other Arrangements; and 
• Exempt Sales and Leases