The provincial sales tax (PST) will be re-implemented on April 1, 2013, following the results of the 2011 referendum. Because of the complexity of reverting back to PST, the government is planning the implementation in stages to ensure a smooth transition.
The Transition
During the transition period the government will implement a new registration, compliance and reporting system to help streamline the administration process and reduce costs. You, along with approximately 100,000 other businesses will be registered as tax collectors on this system. When registered, you will be provided with information and training on tax applications, collection, compliance and the reporting rules relating to PST.
Information will be provided through web based videos and seminars as well as on the PST in BC website. More details on these outreach programs will be published once they have been confirmed.
What it Means for Your Business
Prior to the reimplementation of PST you will need to prepare the electronic and manual systems and processes to assess, collect, report and pay PST and GST, for your business.
Once implemented, the rules will be much the same as before, applying to all the same goods and services. All PST exemptions will also be re-implemented, including:
- Basic groceries and prepared food e.g. restaurant meals
- Personal services such as haircuts, dry cleaning and funeral services
- Admissions and memberships
- Bicycles
- Print media including newspapers and magazines
PST will be payable when a taxable good or service is acquired for personal use or business use. This will include:
- Purchase or lease of new or used goods
- Goods brought into BC for use in BC
- Servicing of goods e.g. vehicle maintenance, furniture assembly and computer repair
- Telecommunication services including: internet access, non-basic cable, non-residential telephone services, cell phone use, satellite services and facsimile services
- Legal services
For More Information
The Province is still developing many of the transitional rules in consultation with the federal government. To keep up-to-date and find out more about the government’s plans, as well as to find dates for planned outreach and education opportunities, monitor the Moving Forward section of the PST in BC website or contact:
Toll free: 1 877 388-4440
E-mail: CTBTaxQuestions@gov.bc.ca