News and Insights

Saskatchewan Revises Provincial Sales Tax Bulletins

Tax Development Feb 23, 2015

Service Stations and Auto Repair Shops

Saskatchewan’s Ministry of Finance has revised Bulletin PST-15, “Information for Service Stations and Automotive Repair Shops”.  Generally, PST does not apply to the sale of used goods.  However, this bulletin has been revised to clarify that PST applies to the selling price of used parts sold or itemized in repairs for the personal use of individuals, less a deduction of $300 per item. 

In addition to the above, the definitions of taxable and exempt goods have been expanded, and sections have been added on the applicability of PST to repair parts, labour, reconditioned or remanufactured parts, warranty repairs, and shop supplies.

Extended Warranty and Maintenance Contracts

Bulletin PST-6, “Information for Vendors of Extended Warranty Contracts and Maintenance Contracts” has been updated to include definitions of real property and tangible personal property (“TPP”) and the applicability of PST to contracts involving real property and TPP. Specific topics include manufacturer’s warranties, exempt sales, insurance contracts, the sale of used business assets, and goods and services purchased for use in business operations.

Tourist Accommodations

Bulletin PST-31, “Information for Tourist Outfitters, Vacation Farms and Bed & Breakfast Facilities” has been revised to include details about registration requirements and the application of PST to extended lodging services, guide services, equipment rentals, and bundled sales.  The bulletin’s lists of examples of taxable and exempt sales have also been expanded.

Dealers of Recreational Vehicles

Saskatchewan has revised Bulletin PST-48, “Information for Dealers of Recreational Vehicles” to include specific information on:

  • joint purchases between a status Indian and non-status individual (taxable);
  • the sale of shop supplies (taxable to the customer if invoiced separately, otherwise the repair shop is required to pay the tax on purchase); and
  • goods and services purchased for own use (taxable, purchase must self-assess);
  • sales of used business assets (for goods, other than vehicles, tax applies on selling price less greater of $300 deduction or trade-in value, unless goods are for commercial use).