Saskatchewan has recently updated Information Bulletin PST-38, “Information for Non-Resident Real Property and Service Contractors”.
The province has clarified the following:
- all non-resident contractors (i.e., who do not have a permanent place of business in Saskatchewan) are required to register for PST;
- contractors must pay PST on the cost of all supplies (e.g., materials and equipment repair parts) brought into the province to be used in real property or service contracts;
- supply and install contractors may not opt to collect PST from their customers rather than paying the tax themselves – they are liable for the tax on all supplies used to complete the contract;
- contractors are required to note that the contract price includes PST on the quote and invoice and PST should not be shown as a separate line item; and
- services acquired by non-resident contractors on equipment and components sent out of Saskatchewan for repair are also subject to the self-assessment of PST.
