Provincial Sales Tax (PST)

Also known as the social service tax, the PST is B.C.'s retail sales tax. The tax rate is 7%, except on sales of alcohol, which are taxed at 10%. Some luxury vehicles are also taxed at a higher rate.

PST applies to: retail merchandise purchased or leased in the province; certain labour services such as automobile repairs, engine tune-ups and camera repairs; short-term passenger vehicle rentals; motor vehicle parking charges in most parking sites in the Vancouver region; and telecommunications services.

However, there are tax exemptions for such items as food (including restaurant meals), medication, children's clothing and footwear, books, magazines, newspapers and bicycles.
 
Businesses offering taxable goods or services for sale are required to register with the ministry as vendors to collect and remit PST on all taxable sales. All tools, equipment and machinery used in the business are subject to PST, which must be paid by the service provider.

General PST Information:
Useful PST Brochure:
Useful PST Bulletins:
PST FAQs


Are all purchases and leases taxed?

No.  You do not pay PST on clothing and footwear for children under 15, all food products for human consumption, restaurant meals, books, magazines, newspapers, medications and bicycles.
 
You also do not pay PST on labour services, automobile towing and emergency battery boosting, clothing alterations and services to exempt items (such as bicycles repairs, dry cleaning, laundry and personal services, like hairdressing).

For more information, please see the bulletin Taxable Services [PDF].


Do I need to register as a vendor?

Yes, if you:

  • regularly sell taxable goods;
  • lease taxable goods as a lessor;
  • sell parking rights within the Greater Vancouver Transportation Service Region;
  • provide taxable services;
  • provide telecommunication services; or
  • sell propane.

If you’re located outside B.C. and make sales in the province, you may be required to register as a vendor in B.C. Please see the bulletin Out-of-Province Sellers  [PDF] to determine if you must register.

If you’re not required to register, you still must collect the PST if you occasionally make taxable sales or leases. For more information, please see the bulletin Registering to Collect Provincial Sales Tax (PST) [PDF].


What about contractors and subcontractors?

If you construct buildings, or supply and install goods that become improvements to real property, you’re a real property contractor. This includes contractors and trade subcontractors in the construction industry, as well as other businesses that make improvements to real property.

The labour component of real property improvement is specifically exempt. Tax is payable on the goods used in the contract to improve the real property. The contract structure determines who pays the tax.

For more information, please see the bulletin Real Property Contractors [PDF].


How do I charge and collect PST?

You charge PST on the purchase price at the time of sale, including sales on credit, unless the item or service is exempt from tax. You must show PST separately on all invoices except on alcohol sales, which may be sold at tax-included prices.

For more information, please see the bulletin Provincial Taxes and You: DOs and DON’Ts  [PDF].


How often do I receive tax return forms?

Your reporting frequency is set at the time of registration, based on your estimate of the amount of PST you’ll collect per month. Reporting periods may be monthly, quarterly, semi-annual, annual or seasonal.

The letter sent to you, attached to your Certificate of Registration, tells you about your reporting periods and when you’ll receive your first Social Service Tax Return form.


How does PST affect my short-term equipment needs?

Any equipment or vehicles brought into B.C. for use on a specific job and removed after completion of the task are subject to a 7% tax on one-third of their value for every 12-month period during which the equipment is in the province for more than five days.

The tax is due within 15 days of the date of entry. For more information, please see the bulletin Equipment Brought into the Province for Temporary Use (1/3 Formula).   [PDF]


Are there PST refunds for visitors?

No.  If you purchase and take delivery of the merchandise in British Columbia, you do not qualify for a refund of the tax paid, even if you later take the merchandise out of province.  PST is payable at the time of purchase.
 
However, purchases by out-of-province visitors are exempt from PST if the item is shipped directly out-of-province by the seller.


Questions from Official Sponsors?

For information on how provincial sales tax applies to official sponsors of the games, please contact Daryl.Nelson@gov.bc.ca.