News and Insights

Saskatchewan Clarifies Information on Real Property Contracts

Tax Development Nov 15, 2019

Information Notice IN 2019-02, “Notification Regarding Real Property Service Transition Rules” was issued by Saskatchewan to clarify information with respect to real property contracts that straddle the April 1, 2017 effective date where PST started applying services to real property in Saskatchewan.

The clarification was required since the transition rules provided under The Provincial Sales Tax Act do not cover contracts or parts of contracts that relate to the operation, maintenance, and rehabilitation of any improvement that began or continue after the substantial completion of an improvement.  Contractors are reminded that when they enter into these contracts, they are required to follow the PST legislation in effect as of April 1, 2017 when applying the PST to services provided under the contract.

It also reminds real property contractors, working on an “Old PST Rules” contract, of their PST collection and remittance obligations under the rules.

The province also updated Information Notices IN 2017-2, “Provincial Sales Tax – Services to Real Property” and IN 2017-17, “Land Development and Residential and Commercial Construction Application of PST and Transition Rules” with similar information.