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Frequently Asked Questions
Questions:
Answers:
Do I pay PST on replacement conveyor belting material? |
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No. You do not pay PST on conveyor belting material when used to repair, maintain, modify or assemble conveyor systems at a mine site or manufacturing site.
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Do I need to fill out a separate exemption certificate for each purchase of production machinery and equipment? |
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No. If you purchase or lease frequently from the same supplier, you may provide one completed certificate along with a list of items you are claiming an exemption for. You can make future exempt purchases/leases of the same items from that supplier based on this same certificate.
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I operate a gravel pit. Do I charge PST on gravel? |
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Yes. You charge PST on your gravel sales. If you deliver gravel, you charge PST on the delivery charge if the customer does not receive title to the gravel prior to the delivery.
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Do I pay PST on ore trucks I use primarily at a mine site? |
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It depends. You pay PST on vehicles that are designed for regular use on a public highway, even if they never leave the mine site.
If you qualify for the production machinery and equipment exemption, you do not pay PST on vehicles you use primarily at a mine site, such as a 190-ton ore truck, that are not designed for regular use on a public highway. |
Do I pay PST on replacement filters for production machinery and equipment? |
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No. You do not pay PST on filters that are replacement parts for exempt machinery and equipment. |
Is the machinery I use for loading ore into transport equipment at the mine site PST exempt as production machinery and equipment? |
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Yes. The machinery and equipment you use at the mine site is exempt from the extraction of the ore from the ground to the point where the ore is placed on transport equipment for removal from the mine site.
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Do I pay PST on explosive supplies I use to construct mining access roads? |
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Yes. You pay PST on explosive supplies you use to construct mining access roads. This applies even if you reuse the minerals blasted out of the pathway of the road to fill in the road bed. |
Do I pay PST on service vehicles and tools to repair exempt production machinery and equipment at the mine site? |
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Yes. You pay PST on service vehicles and tools you use to repair exempt machinery at the mine site. To qualify for the production machinery and equipment exemption, you must use machinery and equipment directly in the processing or extraction of raw materials. Machinery and equipment purchased by eligible mining companies to repair exempt production machinery and equipment is not used directly in the extraction or processing of minerals.
If you use the same equipment during the extraction or processing of minerals for your repairs, the equipment is exempt if it is used over 50% of the time for the extraction or processing of minerals. |
Last Revised: February 2009
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