British Columbia Bulletin PST 117, “Motor Vehicle Dealer-Use and Manufacturer-Use Formulas” discusses the requirement for motor vehicle dealers and manufacturers in British Columbia to self-assess Provincial Sales Tax (PST), using prescribed formulas, where exempt inventory is used for purposes other than resale.
Specifically, the requirements state that the dealer-use formula is to be used when a motor vehicle is used in relation to the dealer’s business as a dealer. The vehicle must be used by the dealer or an officer, salesperson, or other employee of the dealer.
The bulletin has been updated to add that where any of the aforementioned individuals removes a motor vehicle from inventory for personal use, the dealer-use formula must be used to determine their PST liability. This change is retroactive to April 1, 2013.