Sales tax credit
The B.C. sales tax credit has been re-introduced to complement the re-introduction of the provincial sales tax (PST) effective for 2013 and later years.
You're eligible to claim the sales tax credit for a tax year if you were a resident of B.C. on December 31 of the tax year and you:
- Were 19 years of age or older, or
- Had a spouse or common-law partner, or
- Were a parent.
For 2013 and later years, you can claim up to $75 for yourself and $75 for your cohabiting spouse or common-law partner.
If you're single, the credit is reduced by 2% of your net income over $15,000. If you have a cohabiting spouse or common-law partner, the credit is reduced by 2% of your family net income over $18,000.
You can't claim this credit if you were confined to a prison or similar institution as of December 31 and were there for more than six months of the tax year.
For the period July 2010 to January 2013, the B.C. HST credit was available instead of the B.C. sales tax credit. The HST credit was a non-taxable payment that was combined with the goods and services credit and the B.C. climate action tax credit into one quarterly payment. If you were married or had a common-law partner, only one of you can receive the HST credit on behalf of the family.
The maximum HST credit amount per family member was $230. Individuals with incomes up to $20,000 and families with incomes up to $25,000 were entitled to receive the maximum credit. The HST credit was reduced by 4% of net family income over the income threshold. For questions about the B.C. HST credit, call the Canada Revenue Agency at 1-800-387-1193.
Claiming the credit
You claim the sales tax credit when you file your T1 Income Tax Return, by using the British Columbia Credits form (BC479). The credit is refundable to the extent it exceeds your income tax payable. You must claim the credit within 3 years after the end of the tax year.
The following legislation applies to the sales tax credit.
- Income Tax Act (B.C.) Section 8