Provincial Sales Tax Frequently Asked Questions
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- Am I required to pay PST on goods I purchase for business use, such as office equipment, furniture, supplies and tools?
- I am a contractor involved in the construction industry. Do I charge PST on my services?
- Am I required to charge PST to tourists and other customers that live outside B.C.?
- Are leases of real property (e.g. bare land, retail space, storage space, or long-term accommodation) subject to PST?
- A seller refused to provide me with an exemption on exempt goods. What can I do?
- Does the PST apply to memberships or event admission?
- Are consulting, management or financial services subject to PST?
- Are ‘eco’ fees and environmental surcharges subject to PST?
- Do liquefied natural gas (LNG) producers qualify as manufacturers eligible to obtain production machinery and equipment (PM&E) exempt from PST?
- Are liquefied natural gas (LNG) producers eligible to purchase natural gas exempt from PST if they convert it into LNG for sale?
Am I required to pay PST on goods I purchase for business use, such as office equipment, furniture, supplies and tools?
Yes, you must pay PST on all goods you acquire for business or personal use, unless a specific exemption applies (e.g. goods purchased for resale). Generally, you pay PST when you purchase or lease taxable goods from your supplier. If your supplier does not charge you PST, you must self-assess the PST due.
Unlike the GST/HST, there are no PST input tax credits provided for goods purchased by a business.
It depends if you are a real property contractor. You are a real property contractor if you supply and affix, or install, goods so that they become part of real property. Generally, if you are a real property contractor, you must pay PST on taxable goods you obtain to fulfil a contract, unless a specific exemption applies. You do not charge your customers PST.
If you are not a real property contractor, you charge your customer PST on all taxable goods and services. You do not pay PST on those goods you purchase solely for resale.
For detailed contractor information, see our series of bulletins.
Yes, you must charge PST on all taxable goods and services you sell in B.C., unless a specific exemption applies. There are no general exemptions that apply if you sell goods or services in B.C. to customers that live outside B.C. (e.g. tourists). However, you generally do not charge PST if you arrange for the goods to be shipped or delivered to a location outside B.C.
For more information, see Delivery Charges (Bulletin PST 302) (PDF).
Are leases of real property (e.g. bare land, retail space, storage space, or long-term accommodation) subject to PST?
No, leases of real property are not subject to PST. This includes leases of bare land, farmland, retail and commercial space, storage space, and long-term accommodation (over one month).
However, if the lease of real property includes taxable goods together for a single price, generally, PST is charged on the fair market value of the lease for the taxable goods. For more information, see Rentals and Leases of Goods (Bulletin PST 315) (PDF).
If you paid PST on exempt goods or services, or if you were required to pay PST because you didn’t provide the required information or document to obtain an exemption at the time of the sale, you can get a refund or credit from the seller of the PST you paid within 180 days of the date PST was paid. However, if the exemption is dependent on you providing required information or documentation (e.g. your PST registration number), you must provide this information to the seller before they can provide a refund or credit.
Alternatively, you may apply to us for a refund.
No, PST does not apply to memberships, event admissions, or tickets and passes for sporting or music events, as long as no taxable goods (e.g. a t-shirt) are provided with the membership or admission. More information will be available soon in Bulletin PST 122.
No, stand-alone consulting, management and financial services that do not include the sale or lease of any taxable goods, services or software are not subject to PST.
If you provide taxable goods, services or software with these services and are unsure of how PST applies, please contact us.
Yes, ‘eco’ fees and environmental levies such as those applied by various industry stewardship programs to items such as tires, batteries and electronics form part of the total purchase price for these goods and are subject to PST if the goods themselves are subject to PST.
Do liquefied natural gas (LNG) producers qualify as manufacturers eligible to obtain production machinery and equipment (PM&E) exempt from PST?
No, the PM&E exemption for manufacturing does not apply to LNG production.
However, while liquefied natural gas processing does not qualify as manufacturing, there is a PM&E exemption for qualifying oil and gas producers. LNG producers may be eligible for the PST exemption for PM&E obtained for use in the extraction or processing of natural gas. For more information, see Oil and Gas Industry ‑ Producers and Processors (Bulletin PST 113) (PDF).
Are liquefied natural gas (LNG) producers eligible to purchase natural gas exempt from PST if they convert it into LNG for sale?
Yes, if the LNG is being produced for the purpose of sale, including exported for sale, the natural gas purchased by the producer of the LNG would be exempt from PST.
Natural gas used by the LNG producer as part of the production process will be subject to carbon tax and may be subject to either PST or motor fuel tax depending on how the natural gas is used. For more information, see Energy, Energy Conservation and the ICE Fund Tax (Bulletin PST 203) (PDF).