The Government of Saskatchewan has updated Information Bulletin PST-73, “Information for Vendors of Insurance Contracts” to clarify the rules regarding the exemption for agriculture insurance.
The revised bulletin identifies specific policies for crop, livestock and agricultural product insurance which, when sold to a farmer or primary producer, are exempt from PST. The bulletin provides a list of examples of insurance policies that are not exempt from PST, including: general liability; business interruption; farm machinery; and farm buildings and structures. Clarifications have also been made to the definition of a farmer, primary producer and agricultural product for the purposes of the exemption. In addition, a couple of examples have been added to the lists of taxable and exempt insurance contracts.