Saskatchewan Releases Information Notice Relating to Contractors and PST on Insurance

The Government of Saskatchewan has issued Information Notice 2018-08 “Contractors/Builders and Provincial Sales Tax on Insurance” to clarify the rules concerning the purchase of insurance in relation to services to real property.

Generally, a contractor or builder is not a vendor of insurance, and, as a result, any contract of taxable insurance purchased in relation to risks in Saskatchewan may not be exempted when sold to a contractor.  This information notice reaffirms that any insurance purchases, including surety bonds and new home warranty insurance, by a contractor or builder, are subject to Saskatchewan PST. Where contractors or builders list and identify insurance separately on an invoice to a customer, they would not be required to collect PST.