British Columbia Bulletin PST 001, “Registering to Collect PST” has been updated to clarify registration criteria for real property contractors, businesses outside British Columbia, voluntary registration and determining the location of your business. The bulletin specifies that if you regularly sell taxable goods in British Columbia in the ordinary course of your business, you must register to collect and remit PST. The bulletin also lists criteria used to determine location of business for PST purposes.
The registration criteria has been broadened to include PST registration for real property contractors where they enter into contracts to supply and affix or install goods that become part of real property and the agreement with the customer specifies that the customer will pay PST. In addition, a direct seller to an independent sales contractor must register for PST.
The bulletin notes that mandatory registration is required for businesses that provide, in British Columbia, legal services, services to taxable goods, software or telecommunication services. Also, businesses that provide four or more units of accommodation in British Columbia must register to collect PST.
Businesses outside British Columbia, but within Canada, that sell taxable goods and taxable software or telecommunication services to customers in British Columbia must register to collect and remit PST. In addition, effective September 1, 2015, businesses outside British Columbia, including those located outside Canada, that hold inventory in Canada will be required to register for PST. Businesses may still voluntarily register, even if they are not required to register.