PST for real property contractors

Last updated on April 1, 2025

Contractors and the financial professionals who work with them should know how PST applies to goods and services that are provided as part of real property contracts. 

You can start by watching the five-minute video below for a general overview of how PST applies to the types of work done by most contractors. The three most important topics covered in the video are:

  • When contractors should pay PST on the purchase of goods
  • When contractors should charge PST to their customers
  • When contractors may be eligible for PST refunds or exemptions from paying PST

The index of links on this page offers detailed information on topics related to PST as it applies to contractors, including how to manage PST on your inventory if you also make direct sales of goods to your customers, how to claim and document an exemption from PST, how to assess PST on goods that are shipped into and/or out of B.C. for use in contracts, and whether or not certain goods become part of real property when they are supplied or installed.

Real property contractor webinar

To find out more about how PST applies to contractors, register for our webinar. This 1 hour webinar is designed for real property contractors and the financial professionals that work with them, and will give you an opportunity to ask a tax expert if you have any specific questions about how PST applies to real property contracts. It covers:

  • Defining who is considered a contractor
  • Examples of applying PST
  • Exemptions specific to contractors
  • Resources for further information

For registration information, you can watch the video next to this notice, or visit our PST webinars and seminars page. 

 

Provincial sales tax for real property contractors

 Topic library

Glossary of terms

  • A list of common terms and definitions related to PST as it relates to real property contractors

Defining real property

  • A detailed explanation of the definition of real property
  • Lists of goods that generally do and do not become real property

Paying PST on the purchase of goods used in contracts

  • Rules for paying PST on goods that you purchase to fulfil a real property contract or provide a service
  • Self-assessing PST
  • Sending, receiving or bringing goods into B.C.

 

Charging and collecting PST for contractors

  • Acquiring goods for resale
  • Charging your customers PST
  • Charging PST on services you provide
  • Registering to collect PST

PST exemptions for contractors

  • Agreements where the customer is liable for PST
  • Contracts with exempt persons
  • Contracts with First Nations individuals or bands
  • Exemptions for goods shipped out of B.C.
  • Exemptions for goods purchased solely for resale or lease
  • Exemption for subcontractors

PST refunds for contractors

  • Claiming PST refunds on goods used to fulfil contracts with exempt persons and First Nations
  • Claiming PST refunds on resale of goods that were for fulfilling your contracts
  • Claiming PST refunds when you ship goods outside of B.C.

Managing mixed inventories

  • Managing PST on different parts of your inventory for mixed contract work and resale

How PST applies to security systems 

  • Information specifically for contractors involved in sales, installation and service of security systems

 

 

Contact information

Our hours of operation are Monday through Friday, 8:30 am to 4:30 pm.

Within Canada and the U.S.A. Toll Free
 1-877-388-4440
Phone
1-250-410-0373
Email
CTBTaxQuestions@gov.bc.ca