British Columbia Updates Information for Real Property Contractors

British Columbia has communicated that subject to legislative and regulatory approval, effective February 19, 2020, real property contractors that supply and affix, or install, goods such that they become part of real property located outside British Columbia may apply for a refund of provincial sales tax (PST) incurred in the purchase of the goods. The refund is also applicable where goods are processed, fabricated, manufactured into, attached to, or incorporated into other goods, and these other goods are affixed or installed such that they become part of real property situated outside British Columbia. Hence, the province has removed the requirement that sales tax has to be paid on the goods in the jurisdiction where the real property is located to qualify for the refund.

The bulletins listed below have been updated to reflect this change:

• Provincial Sales Tax (PST) Bulletin PST 400, “PST Refunds”;
• Provincial Sales Tax (PST) Bulletin PST 501, “Real Property Contractors”; and
• Provincial Sales Tax (PST) Bulletin PST 506, “Real Property Situated Outside BC”.