Saskatchewan Extends Date PST Applies to Insurance Premiums to August 1, 2017

The Government of Saskatchewan has changed the date Provincial Sales Tax (PST) will apply to insurance premiums from July 1, 2017 to August 1, 2017.  The additional time was required to address the implementation of how PST will apply to insurance which includes the following updates:

• Self-insured group benefit arrangements, commonly known as Administrative Services Only (ASO) arrangements, will be subject to PST;
• Individual permanent life insurance policies that were in effect prior to August 1, 2017 will be exempt of PST; and
• Endorsements added to insurance contracts are not subject to PST where the effective date is prior to August 1, 2017.

Additional information can be found in Saskatchewan’s revised Information Notice IN 2017-07, “Provincial Sales Tax on Insurance Premiums”.  The Ministry of Finance plans to release an information bulletin on the application of PST on insurance premiums by May 31, 2017.