Saskatchewan Updates Bulletin for Motor Dealers and Leasing Companies

Saskatchewan Bulletin PST 18, “Information for Motor Dealers and Leasing Companies”, has been revised to include the following:

• A free online database is available to search for a vehicle’s current PST status and its damage claims history: http://www.sgi.sk.ca/online_services/vin/index.html;
• The section on warranties now also includes insurance contracts – these are generally not taxable as the tax is usually paid when the customer (or insurance provider) is billed for the repair;
• Tax applies on purchases by a commercial Indian corporation and on joint purchases between a status Indian and non-status individual.  As well, used vehicles sold exempt to a status Indian before, becomes taxable when resold to a non-status individual, unless the PST was paid by a previous owner;
• Where segregated on an invoice, shop supplies are taxable to a customer, allowing the repair shop to purchase these supplies tax-exempt;
• Environmental handling fees are not subject to PST when shown separately on an invoice, including charges for disposal of oil, oil filters, antifreeze, diesel exhaust fluid containers, diesel fuel filters and tires;
• On the sale of used business assets not for commercial use, a deduction of $300 per item applies (or the greater of the trade-in value and this limit); and
• As always, tax must be paid on the “laid-down cost” of goods and services acquired for a business’ own use – whether to the licensed supplier, or directly to the Ministry by self-assessment.