British Columbia has updated Bulletin PST 400, “PST Refunds”, to amend the time within which a supplier may adjust PST by issuing a refund or credit to a customer who is eligible for an exemption – the period is “within 180 days of the date the PST was paid”. Any adjustments made after the 180 day period may not be adjusted by the supplier on its PST return. Once this period has expired, the customer may claim a refund directly from the Ministry.
In addition, the province has clarified that restocking fees must be deducted before a PST refund is granted, and tax adjustment would apply to the net amount, even if the restocking fee is shown as a separate line item or on a separate invoice.