British Columbia (“BC”) has updated several Provincial Sales Tax (“PST”) bulletins, in most cases, as a result of Budget 2014 changes to the Provincial Sales Tax Regulation and the Provincial Sales Tax Exemption and Refund Regulation.
Bulletin PST 001, “Registering to Collect PST”
A new section regarding Voluntary Registration has been added to clarify that a business not required to register for PST, e.g., a business outside the province intending to do business in BC, may do so voluntarily.
Effective April 1, 2013, natural gas heating systems obtained for use in providing heat for a greenhouse or nursery have been added to the list of exempt items for farmers. The revision also clarifies how PST applies in a change-in-use scenario, e.g., if items are purchased exempt from PST and later used for a taxable purpose.
Bulletin PST 110, “Production Machinery and Equipment Exemption”
The following clarifications are provided:
- the application of PST to goods consumed during use; and
- the calculation of the depreciated value of vehicles and equipment.
The revisions also include additional information on tax payment agreements, goods brought into BC, and real property contracts and affixed machinery.
Bulletin PST 111, “Mining Industry”
A new section regarding production machinery and equipment (“PM&E”) used in road construction and maintenance was added. Mine operators that pay PST on PM&E equipment may now be eligible for a refund of the tax.
The revisions also clarified information on:
- the application of PST to goods consumed during use; and
- the calculation of the depreciated value of vehicles and equipment.
The sections on goods brought into BC, real property contracts, and affixed machinery have also been revised.
Bulletin PST 112, “Logging Industry"
The revisions include information on how to calculate the depreciated value of various equipment, as well as more examples of taxable goods.
Bulletin PST 127, “Veterinarians and Pet Stores”
In addition to previously listed items, the following goods are now tax exempt:
- drugs and medicines to treat animals in specific situations; and
- vitamins and dietary supplements that are orally ingestible and for animals, in specific situations.
Bulletin PST 200, “PST Exemptions and Documentation Requirements”
This bulletin was revised to include the exemption for natural gas purchased for use in an internal combustion engine, as well as the exemption for certain animal-related drugs and medicines.
Bulletin PST 203, “Energy, Energy Conservation and the ICE Fund Tax”
Information on how to claim the exemption for natural gas purchased for use in an internal combustion engine has been added.
Bulletin PST 315, “Rentals and Leases of Goods”
The section, Incidental Goods, has been added, clarifying the circumstances in which the provision of goods is incidental and not subject to PST as a lease.
Also clarified:
- that agreements that include mandatory buyouts are conditional sales agreements; and
- how to calculate the depreciation rate on lease inventory when used for a taxable purpose.
Bulletin PST 317, “Tax Payment Agreements”
A refund is now available for PST that is self-assessed on goods held in inventory, that are later used for an exempt purpose. This change is also reflected in several other bulletins.
Bulletin PST 400, “PST Refunds”
Added details on refunds of PST for:
- gifts, prizes, draws or awards of vehicles, boats or aircraft, if the donor later pays the tax;
- goods used under a real property contract with exempt persons; and
- goods purchased under a tax payment agreement.
Bulletin PST 501, “Real Property Contractors”
Contractors that pay PST on goods to be used in contracts are now eligible for a refund, if the goods are used for a customer who is exempt from PST.
- Topics
- Sales Tax
- British Columbia