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Frequently Asked Questions
Questions:
Answers:
Do I charge PST on medicated skin care products? |
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It depends. You do not charge PST on medicated creams and lotions that are advertised, marketed, or sold as preventing or treating a particular skin condition (disease or ailment), and contain ingredients that are helpful in preventing or treating the skin condition. For example, medicated acne treatment products are non-taxable. However, medicated skin care products that are used for cosmetic purposes, such as dry skin or wrinkles, are taxable. |
I am starting a business, where I will be providing aesthetic services, such as manicures and spa treatments. I will also be selling related products. How does PST apply to my business? |
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You charge PST on the sale of beauty products, such as cosmetics, skin care products and other beauty aids. However, you do not pay PST when you purchase these products because they are for resale to your customers. To purchase products for resale without paying PST, give the supplier your PST registration number.
You do not charge PST on aesthetic services, but you pay PST on the purchase or lease of supplies and equipment used in providing the services. This includes supplies and equipment purchased or leased from out-of-province suppliers.
For more information, please refer to Bulletin SST 124, Beauty Industry. |
I am a physician at a skin care clinic. Do I pay PST on products, such as Artecoll, Botox and Collagen, used in skin injections to reduce the appearance of facial lines? |
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It depends. Effective February 18, 2009, you do not pay PST on drugs, such as Botox, that are listed under Schedules I or IA of the Drug Schedules Regulation.
However, drugs that are not listed on these schedules are taxable when used for cosmetic purposes rather than treating a disease or ailment.
For more information on medications and health related equipment and supplies, please refer to Bulletin SST 006, Medical Supplies and Equipment. |
At my salon, I provide hair extensions where I weave natural hair permanently into my clients' hair. Do I charge PST on these services? |
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No, you do not charge PST on services to attach hair extensions; however, pieces of hair that are attached to your clients' hair are taxable. If you charge a single price for the hair extensions and the service to attach them (a bundled sale), generally you charge PST only on the fair market value of the hair extension. For more information, please refer to Bulletin SST 119, Bundled Sales: Taxable and Non-Taxable Goods or Services Sold Together for a Single Price. |
I often give away bonus gifts with a minimum purchase of other products. For example, I give my customers a bonus gift bag when they purchase $35 worth of cosmetics. Do I pay PST on my purchases of these bonus gifts? |
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It depends. If the give away item meets one of the following conditions, you can purchase it without paying PST:
- it is physically included with the purchased item (e.g. a hair brush packaged with shampoo),
- your customer receives the give-away item or bonus gift as a condition of purchasing other product(s), or
- you advertise that you only give it away with the purchase of other product
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I bought hair care products for resale without paying PST by quoting my PST registration number. If I later use some of these same products to provide hairstyling services, do I need to pay PST? |
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Yes. If you take items from your resale inventory and use them for your business, you self-assess PST on your cost of the items. When you self-assess, record the PST due at Step 3 of your next return. If you are not registered, you self-assess the PST due using a Casual Remittance Return For Provincial Sales Tax (PST) Due on Taxable Tangible Personal Property by a Purchaser Not Registered Under the Social Service Tax Act (FIN 428). |
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