British Columbia (“BC”) Finance has published Bulletin PST-307, “Goods Brought Into BC for Temporary Use” that explains the application of the provincial sales tax (“PST”) to goods that are either brought/sent into or received in the province for use on a temporary basis. While there are many situations in which goods enter BC, this bulletin deals only with those entering the province for a specific period of time, where the intention is for the goods to exit the province at the end of that period.
The rates that apply to goods temporarily used in BC vary depending on the type of goods in question. For example, most goods will be taxed at a rate of 7% of the purchase price, which includes charges for service, customs, excise and transportation. Other goods may be taxed based on the Temporary Use Formula, which takes into account the depreciated purchase price of a good.
The bulletin includes handy charts listing various rates that apply to specific goods, information on the Temporary Use Formulas for different types of goods, and examples to help understand how the formulas apply. In addition, there is information on how to remit the tax that has been calculated as due, what to do in a situation where the good will remain in the province indefinitely, and refunds or exemptions that may be available.