British Columbia Updates Bulletin on Vehicle Services and Parts

British Columbia has updated Bulletin PST 118, “Vehicle Services and Parts”, to add a section on how PST applies to core charges on automobile parts.  Core charges are typically fees for parts that can be recycled or refurbished, and can be refundable to the purchaser when the used part is returned to the supplier.

PST applies to the initial core charge of the auto part, and tax may have to be paid by the original supplier when the used part is returned and the core charge is refunded, based on the amount refunded, unless the part is acquired for resale purposes or purchased from a small seller.  If a used part is accepted in exchange for a new part, and the core charge refund is used to reduce the purchase price for the new part, then PST is generally calculated on the amount of the new part less the core charge refund (subject to certain conditions).