News and Insights

Saskatchewan Updates PST Information for Restaurants, Caterers, and Other Businesses Selling Prepared Food and Beverages

Tax Development Oct 23, 2019

Saskatchewan has released an updated version of Information Bulletin PST-33, “Information for Restaurants, Caterers, and Other Businesses Selling Food and Beverages.” In the latest version of the document, the province reminds businesses and individuals that sell food and beverages about their obligation to collect PST at craft and trade shows.

The bulletin also refers to Information Notice IN 2017-09, “Requirement to Collect Tax at Craft and Trade Shows in Saskatchewan,” which has been updated with the same reminder and provides examples showing how to calculate tax where tickets or tokens that may be redeemed for prepared food items, non-alcoholic beverages, and/or alcoholic beverages are sold to customers.

Other notable changes to the bulletin include:

  • An update on the basis for self-assessing and remitting PST on complimentary food or non-alcoholic beverages. The former version stated that the regular selling price should be used as the tax base, but the updated version indicates that the total cost of the complimentary items should be used.
  • Clarification that, although businesses in the food industry are not required to pay PST on meals prepared by them and provided free of charge to employees as a term of employment, any food or non-alcoholic beverages sold to employees at a discounted rate are subject to PST on the reduced selling price.
  • The addition of examples to illustrate the calculation of PST on prepared food and beverages sold under promotional offers, such as discounts and coupons.