News and Insights

Saskatchewan Retroactively Exempts Permanently Mounted Equipment from PST

Tax Development Jan 05, 2019

Saskatchewan has updated Information Bulletin PST-13, “Petroleum Drilling & Well Servicing Contractors”, and has also issued Information Notice IN 2018-10, “Provincial Sales Tax Exemption Oil and Gas Industry Equipment”, to outline how PST applies to equipment acquired by petroleum drilling and well servicing equipment contractors.

The bulletin specifically identifies drilling rigs, service rigs, and specific well servicing equipment which qualify to be acquired exempt of Saskatchewan provincial sales tax (SK PST).  The exemption available to this equipment is retroactive to April 1, 2017, the date when the previous PST remission available to this equipment was eliminated.  Only capitalized equipment used in the oil and gas industry and specifically listed in the bulletin are exempt of SK PST.  Various tools, consumables and multiple purpose equipment remain subject to SK PST.