British Columbia Updates Vehicle Bulletins for Luxury Surtax PST

British Columbia has updated the following bulletins to reflect the application of the luxury vehicle surtax to passenger vehicles leased or purchased in the province:

• Bulletin PST 116, “Motor Vehicle Dealers and Leasing Companies”;
• Bulletin PST 307, “Goods Brought into BC for Temporary Use”;
• Bulletin PST 308, “PST on Vehicles”;
• Bulletin PST 312, “Gifts”;
• Bulletin 315, “Rentals and Leases of Goods”; and
• Bulletin 318, “Trusts”.

As announced in the British Columbia 2018 budget, the PST rates for vehicles worth $125,000.00 or more increased effective April 1, 2018.  The PST rate on passenger vehicles with a purchase price between $125,000.00 and $149,999.99 increased from 10 to 15 percent, while the PST rate for passenger vehicles with a purchase price of $150,000.00 or more rose from 10 to 20 percent.  Similarly, the PST rate on private sales of passenger vehicles with a purchase price from $125,000.00 to $149,999.99 increased from 12 to 15 percent, and the PST rate for passenger vehicles with a purchase price of $150,000.00 or more increased from 12 to 20 percent.

In addition, for passenger vehicle sales subject to the 15% or 20% tax rates, the PST will be included in the consideration subject to GST.  Additional information is available in Provincial Sales Tax Notice 2018-003, “PST Rate Change for Passenger Vehicles Worth $125,000 or More”.