bc-pst

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# BC PST

## British Columbia — Provincial Sales Tax (PST) — Skill v1.0

British Columbia did NOT harmonize with the federal Goods and Services Tax (GST). Instead, BC operates a stand-alone retail sales tax called the **Provincial Sales Tax (PST)** under the **Provincial Sales Tax Act, SBC 2012, c. 35**. Sellers with BC nexus must collect **both** 5% federal GST and 7% BC PST on most taxable sales — they are administered by two different governments on two different bases. This skill covers PST only; for the 5% GST overlay see `canada-gst-hst`.

## 1. Quick reference

- **Standard PST rate** — 7%
- **Registration threshold (BC sales)** — CAD 10,000 in a 12-month period
- **Foreign seller / marketplace economic nexus** — CAD 10,000 (in force since 1 April 2021)
- **Filing form** — FIN 400 — Provincial Sales Tax Return
- **Filing portal** — eTaxBC (https://etax.gov.bc.ca)
- **Filing frequency** — Monthly / quarterly / semi-annual / annual (set by Ministry based on tax collected)
- **Due date** — Last day of the month following the reporting period
- **Statutory basis** — Provincial Sales Tax Act, SBC 2012, c. 35
- **Administrator** — BC Ministry of Finance — Consumer Taxation Programs Branch
- **Companion federal tax** — GST 5% (charged separately, remitted to CRA)

**Quick reference table**

| Item | Value |
| --- | --- |
| Standard PST rate | **7%** |
| Registration threshold (BC sales) | **CAD 10,000** in a 12-month period |
| Foreign seller / marketplace economic nexus | **CAD 10,000** (in force since 1 April 2021) |
| Filing form | **FIN 400** — Provincial Sales Tax Return |
| Filing portal | **eTaxBC** (https://etax.gov.bc.ca) |
| Filing frequency | Monthly / quarterly / semi-annual / annual (set by Ministry based on tax collected) |
| Due date | Last day of the month following the reporting period |
| Statutory basis | Provincial Sales Tax Act, SBC 2012, c. 35 |
| Administrator | BC Ministry of Finance — Consumer Taxation Programs Branch |
| Companion federal tax | **GST 5%** (charged separately, remitted to CRA) |

> **Critical distinction from GST/HST.** PST is a **retail sales tax**, not a value-added tax. There are **no input tax credits**. A registered PST collector cannot recover PST paid on its own purchases — that PST becomes a cost of doing business unless a specific exemption certificate applies (e.g., goods purchased for resale).

## 2. Required inputs + refusal catalogue

### Required inputs before producing any return

- **Required inputs list** — 1. **Legal name + BC PST number** (format `PST-NNNN-NNNN`). 2. **Reporting period** start and end dates. 3. **Total BC sales** (taxable + exempt, broken out). 4. **PST collected** on sales. 5. **PST self-assessed** on taxable purchases brought into BC where no PST was charged at source (use tax / "self-assessment of PST"). 6. **MRDT amounts** (separate line) if collected on accommodation. 7. **Refunds/credits** issued to customers in the period. 8. **Exemption certificates on file** for any zero-rated B2B sales claimed. 9. **Indication whether seller is** (a) BC-located, (b) Canadian outside BC, or (c) foreign seller — affects the registration / collection rules.

### Refusal catalogue — STOP and refer to a BC-registered tax practitioner if:

- **Refusal catalogue** — - Real-property contractors (real-property contracts vs. retail sale of materials — special PST 168 rules). - Liquor licensees / cannabis retailers (separate liquor mark-up + cannabis-specific PST rules). - Motor vehicle dealers — passenger-vehicle luxury surtax bands require dealer-specific guidance. - Energy / natural gas / electricity producers (sector-specific PST treatment under PSTERR and the Carbon Tax Act). - Insurance / financial services (Insurance Premium Tax, not PST). - First Nations sales on reserve (s. 87 Indian Act interaction). - Bankruptcy / receivership returns. - Audit defence, voluntary disclosure submissions, appeals to the Minister. - Any return where the entity is also registered in Saskatchewan, Manitoba, or Quebec — multi-province PST/RST/QST coordination is out of scope here.

## 3. Rate schedule

- **Standard PST rate definition** — 7% on the purchase price of taxable goods, taxable software, and taxable services

**Rate schedule table**

| Category | Rate | Notes |
| --- | --- | --- |
| General tangible personal property | **7%** | Default rate |
| Liquor (sold by liquor retailer to consumer) | **10%** | Applied in addition to federal GST; replaces the former 10% Liquor Consumption Tax |
| Vapour products (e-cigarettes, vapour liquids) | **20%** | In force since 1 Jan 2020 |
| Accommodation (short-term) | **8%** | Separate accommodation rate; MRDT (Section 7) may add 2–3% on top |
| Passenger vehicles — < $55,000 | **7%** | Private sale of used vehicle also 7% (formerly 12% — equalised April 2022) |
| Passenger vehicles — $55,000 – $55,999.99 | **8%** |  |
| Passenger vehicles — $56,000 – $56,999.99 | **9%** |  |
| Passenger vehicles — $57,000 – $124,999.99 | **10%** |  |
| Passenger vehicles — $125,000 – $149,999.99 | **15%** |  |
| Passenger vehicles — ≥ $150,000 | **20%** |  |
| Boats, non-turbine aircraft | 7% / 8% / 10% / 12% banded similarly | Confirm latest bulletin |

- **Rate-determination rule** — > **Rate-determination rule.** The rate is set by the **purchase price including the federal GST** for accommodation and certain other categories, but for passenger vehicles the rate is determined on the price **before GST**. Always read the specific bulletin for the category.

## 4. Registration

### Who must register

- **Registration criteria** — A person must register to collect PST if they **make taxable sales, leases, or provide taxable services in BC** and either: 1. **Resident-in-BC seller** — sells, leases, or provides taxable goods/services in BC in the ordinary course of business (no de minimis — even a single taxable retail sale can trigger registration), OR 2. **Out-of-province Canadian seller or foreign seller** with **more than CAD 10,000 in gross revenue from BC retail sales in the previous 12 months** (or reasonable expectation of exceeding $10,000 in the next 12 months) — this is the economic nexus rule under s. 168.2 PSTA, in force since **1 April 2021**.  _(s. 168.2 PSTA)_

### Marketplace facilitators

- **Marketplace facilitator obligations** — Under amendments effective **1 July 2022**, an **online marketplace facilitator** (Amazon, Etsy, eBay, Shopify Markets, etc.) that facilitates **CAD 10,000+ of BC sales by marketplace sellers** in a 12-month period must: - Register for PST, - Collect and remit PST on facilitated sales on behalf of the underlying seller, - Issue compliant invoices showing PST collected, - Report on FIN 400 as a marketplace facilitator. The marketplace seller does **not** also collect PST on the same transaction — this is statutory single-point collection. The marketplace seller still must register if their **non-facilitated** BC sales (their own website, in-person, etc.) exceed $10,000.  _(Effective 1 July 2022)_

### How to register

- **Registration methods** — - Online via **eTaxBC** — preferred. - Form **FIN 418** (Application for Registration for PST) — paper alternative. - Foreign sellers do not need a BC business number or a Canadian bank account to register; remittance can be made by wire.

## 5. Taxable goods / services / software

- **Closed list rule** — PST applies to a **closed list** of taxable categories. If something is not in the list, it is exempt. This is the **opposite** of GST/HST, where everything is taxable unless specifically exempted or zero-rated.

### Taxable

- **Taxable categories** — - All **tangible personal property** (goods) unless specifically exempt. - **Software** — taxable when (a) delivered on tangible media, (b) downloaded to a BC device, OR (c) used on or with a BC device via a cloud / SaaS arrangement. The 2021 amendments confirmed cloud-based software is taxable under s. 105 PSTA. This is the broadest single PST/GST divergence for tech companies. - **Telecommunication services** — phone, internet, dedicated lines, paging, etc. (s. 130). - **Legal services** (s. 119). - **Related services** — services applied to or with respect to tangible personal property (repair, installation, maintenance, restoration). Note: services to **real property** (construction, painting a building, plumbing in a wall) are **not** PST-taxable as a service — the contractor pays PST on materials acquired and embeds it as cost. - **Short-term accommodation** under 27 days (s. 123). - **Liquor** (sold to consumer by a liquor retailer). - **Vapour products.**  _(s. 105 PSTA; s. 130; s. 119; s. 123)_

### Not taxable (NOT a complete list — see exemptions in Section 6)

- **Not taxable categories** — - Most personal services (haircuts, accounting, consulting, marketing, design). - Services to real property (other than the contractor's input PST). - Professional services other than legal services. - Online digital services other than software (e.g., a digital newspaper subscription is exempt; Netflix is generally subject only to GST, not PST — though always check current Ministry bulletins).

> **Software trap for SaaS sellers.** A US-based SaaS provider with > $10,000 BC subscribers must register, charge **7% BC PST + 5% GST**, and remit each to the respective tax authority. The BC PST registration is independent of GST/HST registration. Many foreign SaaS providers miss this and face retrospective assessment.

## 6. Exemptions

- **Exemption categories** — Statutory exemptions live in the PSTA, the **PST Exemption and Refund Regulation (BC Reg 97/2013)**, and Ministry bulletins. Headline categories: - **Basic groceries** (food for human consumption — same definition as GST Schedule VI). - **Prescription drugs** dispensed under a Health Professions Act prescription. - **Children's clothing and footwear** (specific size and price thresholds — see Bulletin PST 201). - **School supplies** purchased by a qualifying student (note: stricter than the federal GST exemption — confirm against Bulletin PST 202). - **Residential rent** (long-term, 27+ days) and most residential energy. - **Used goods sold in a private (non-business) sale** — except passenger vehicles, boats, and aircraft, where private-sale PST applies. - **Production machinery and equipment (PM&E)** used by qualifying manufacturers (Bulletin PST 110). - **Goods purchased for resale** — buyer provides a PST exemption certificate quoting their PST number; seller does not charge PST and keeps the certificate for audit. - **Sales to certain First Nations purchasers** on reserve (s. 87 Indian Act + Ministry policy). - **Sales to the federal government** (federal Crown immunity — but NOT provincial Crown or BC municipalities, which DO pay PST). A **bona-fide exemption certificate** must be obtained and retained for 5 years. Without one, audit will reassess PST plus penalties.  _(PST Exemption and Refund Regulation, BC Reg 97/2013; Bulletin PST 201; Bulletin PST 202; Bulletin PST 110; s. 87 Indian Act)_

## 7. MRDT — Municipal and Regional District Tax

- **MRDT rule** — The **Municipal and Regional District Tax** is an **additional 2% or 3%** levied on top of the 8% PST on short-term accommodation in designated areas. It is collected by the accommodation provider and remitted via the same FIN 400 return on a separate line.

### Designated areas (illustrative — confirm current Ministry list)

**Designated areas table**

| Area | MRDT rate |
| --- | --- |
| Vancouver | 3% |
| Victoria | 3% |
| Whistler | 3% |
| Tofino | 3% |
| Kelowna | 3% |
| Most other participating municipalities | 2% |

### Online accommodation platforms (Airbnb, Vrbo, Expedia)

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