Accounting Services, Vancouver
February 21, 2013

The PST has returned!

Written by Jordan Cahill

The much loved (and hated) Provincial Sales Tax is coming back to British Columbia on April 1st, 2013. We have been receiving many questions from our clients regarding whether the same rules for the PST will be in effect. Although the regulations have not been released yet – It has been advised that basically the same goods and services will be subject to tax. However, the Provincial Government still has the ability to change the legislation as they see fit – for the better or the worse!

I recently attended a seminar hosted by The British Columbia Sheet Metal Association for the re-implementation of the PST in BC. Here are some of the basic highlights:

Rates:

  • General rate: 7%
  • Liquor: 10%
  • Accommodations: 8%
  • Vehicles & Boats: 7 – 12%

What will be taxable under PST?

  • Purchase or lease of new and used goods in BC
  • Goods brought, sent or delivered into BC (for use in BC)
  • Purchases of: Software, accomodations, legal services, telecommunication services.

Exemptions

All of the exemptions under the previous PST will be re-implemented

  • All food for human consumption
  • Bicycles
  • Dry cleaning & tailoring
  • Newspapers & magazine
  • Purchases of goods for resale

PST will not apply to most services including transportation services, personal services and most professional services.

There are special considerations for certain industries such as construction and manufacturing that should be looked into before the implementation date of April 1st, 2013. This is important if your company manufactures goods for resale, or deals with construction contracts.

Feel free to contact us anytime to discuss what options your company has, and how you can make this transition as easy and cost efficient as possible.

Jordan Cahill

Jordan Cahill is a Chartered Accountant (CA) and Chartered Professional Accountant (CPA) with a bachelor degree in business from Simon Fraser University. He articled at a national CA firm in Vancouver,BC and previously held a position at the Canada Revenue Agency as a business auditor.

Jordan Cahill on LinkedIn

Website: www.cahillpro.com

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