May 24, 2012
On May 14, 2012, the BC government released draft legislation to return to the Provincial Sales Tax (PST) on April 1, 2013. As promised, the government introduced draft legislation that will reinstate all permanent exemptions; consumers will pay PST only on those goods and services that were subject to PST prior to July 1, 2010. The new PST Act will also be easier to follow and comply with compared to its antiquated predecessor.
Regulations to the PST Act and transitional rules are expected over the coming months.
Key changes to note:
- Online access for business, including registration, account updates and payments.
- Tax remittances and returns will be due on the last day of the month.
- Hotel Room Tax of 8% (as it was prior to July 1, 2010) will be incorporated into the PST, eliminating the need for separate registration and remittance/returns.
- Business registration with federal business number.
- Retailer refunds to customers in a broader range of circumstances.
- Continuation of the 12% tax on private sales of vehicles, boats and aircraft.
- Reinstatement of the 10% PST on liquor.
- Elimination of the BC HST credit and reinstatement of the BC Sales Tax Credit.
- Commission of up to $198 per reporting period (typically monthly) to be paid to businesses that collect and remit tax.
For more information on the new PST legislation click here.