British Columbia issued a new bulletin, PST 005, “Buying a Business” to explain the application of Provincial Sales Tax (“PST”) to the purchase and sale of a business.
Generally, PST applies to the sale of new and used goods and software, unless a specific exemption applies. PST will also apply to the purchase of the taxable assets of a business. However, the purchase of shares of a corporation is not subject to PST.
The bulletin discusses the difference between taxable and non-taxable assets, how to pay and/or remit PST, and provides details about clearance certificate requirements.