The Province of Saskatchewan has released the following revised Provincial Sales Tax (“PST”) Information Bulletins which are aimed at assisting taxpayers in properly applying and collecting the PST. In addition, each of these bulletins now reinforces the requirement for taxpayers in the province to self-assess the tax, when it is payable, on the purchase of used goods, on goods purchased where the vendor does not collect the tax, and in situations where the taxpayer removes goods from tax exempt inventories.
Bulletin PST-48, “Information for Dealers of Recreational Vehicles”, notes that the $300 exemption from tax for used goods does not apply to recreational vehicles.
Bulletin PST-57, “Information for Businesses Providing Repair and Installation Services”, expands on the distinction between tangible personal property and real property. The bulletin also clarifies that tangible personal property that is so large and heavy that it cannot be moved may also be considered real property, even though it may not be fixed to land or a building. For example, production machinery and equipment may be considered real property after installation and once it becomes integral to the production process, regardless of whether it is attached to the building.
Bulletin PST-61, “Information for Businesses Providing Commercial Building Cleaning Services”, clarifies that the tax status of building cleaning services depends on the type of property being cleaned (i.e., residential or commercial). Only cleaning services performed on commercial properties are considered taxable. Also, the update clarifies that management or supervisor charges are taxable when invoiced as part of a contract for taxable commercial cleaning services.