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Frequently Asked Questions
Questions:
Answers:
Can I purchase shop supplies, such as rags and cleaning supplies, without paying PST? |
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No. You pay PST on shop supplies. You pay PST on most tools, supplies and equipment that you use in your business.
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Do I charge PST on the provincial battery levy? |
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No. You do not charge PST on the provincial battery levy. However, you charge PST on all other environmental levies or fees the customer pays. |
Can I sell auto parts to farmers without charging PST if the parts will be used on the farmer's farm truck or farm equipment? |
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It depends. You charge PST on all auto parts for farm trucks, as farm trucks are taxable.
However, you do not charge PST on replacements parts if they are specifically designed for exempt farm equipment (see Bulletin SST 023, Bona Fide Farmers for the list of exempt items). |
Do I pay PST on parts for our delivery trucks? |
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Yes. You pay PST on parts for your delivery trucks. If you take parts out of your resale inventory to use in your delivery trucks, you self-assess and record the PST due at Step 3 of your next tax return. |
What documentation do I need to sell to motor vehicle dealers without charging PST? |
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To sell to motor dealers, or other registered vendors, without charging PST, you record their PST registration number on the sales invoice and keep it in your records to show why you did not charge PST. |
I run an auto repair shop. Why do I have to pay PST on my shop supplies when I charge my customer PST on them? |
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You pay PST on shop supplies, such as rags, paper towels and detergents because you use these items to provide your services.
You do not pay PST on parts or materials that remain with the vehicle you are repairing, such as tires, transmissions, engines, brake fluids etc. You pay PST on items that do not remain part of the vehicle, such as shop supplies. |
I offer a free oil and filter change with the purchase of a new vehicle. How does PST apply to this free service? |
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You do not pay PST or charge your customer PST on the free oil and filter change.
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