About Provincial Sales Tax – Depreciation Rates

Under the Social Service Tax Act, Provincial Sales Tax (PST) is sometimes charged on a depreciated value rather than the original purchase price of tangible personal property.

In the following three situations, you pay PST on the greater of the depreciated value or 50% of the original purchase price:

1. If you bring used taxable equipment into the province from another place in Canada for permanent or temporary use, you pay PST on the depreciated value on the day the equipment first entered B.C.
2. If you purchase an item tax-exempt, and later use it for a taxable purpose, you pay PST on the depreciated value as of when the use changes.
3. If you transfer a vehicle from a multi-jurisdictional use to in-province use only, you pay PST on the depreciated value of the vehicle. Also, you may be eligible for a credit or refund based on the tax previously paid on the vehicle. Please see Bulletin SST 073, Multi-Jurisdictional Vehicles.

You calculate the depreciated value on a straight-line basis using the table below:

If you have any questions, please contact us. We will be pleased to assist you.