Contractors and PST
PST applies to taxable goods used to fulfil a contract in B.C. Contractors include builders, carpenters, electricians, plumbers, painters, landscapers and anyone else who installs goods that become part of buildings or land.
You’re also considered a contractor if you make retail sales of goods and then install those goods into buildings or land.
Who Pays the PST
When you’re a contractor, you pay the PST on any taxable goods you use to fulfil a contract and you generally don’t charge your customer the PST.
You charge your customer PST only in the following circumstances:
- You sell them goods but you don’t install the goods
- You sell them goods and install the goods, but the goods don’t become part of a building or land
- Your customer agrees in writing that you can transfer the tax liability to them. Learn more about this special agreement in Real Property Contractors (PDF).
If your customer is exempt from paying PST, you can also claim the PST exemption on taxable goods you use to fulfil a contract with them. Learn more about who is exempt and how to claim a PST exemption in Real Property Contractors (PDF).
When to Register to Collect PST
Contractors don’t usually need to register to collect PST. You only need to register if you are required to charge your customers PST. Learn the details of when to register in Real Property Contractors (PDF).
If you’re registered and you don’t need to be, complete and send in a Request to Close a Provincial Sales Tax Account (PDF) form.