Paying PST on the purchase of goods used in contracts

As a contractor, you need to pay PST on taxable goods you acquire to fulfil a real property contract, unless a specific exemption applies.

On this page:

• Do I need to register for a PST number before I purchase goods?
• Paying PST on goods purchased in B.C.
• Paying PST on goods purchased outside B.C.

Do I need to register for a PST number before I purchase goods?

You only need to register for a PST number if you charge your customers PST. This would be the case if you were to sell any taxable goods directly to your customers without installation, or if your contract is to supply or install goods that do not become part of real property. For more information on charging your customers PST, see Charging and collecting PST for contractors.

If you’re registered for a PST number but do not make any taxable sales to your customers, you can complete and send in a Request to Close a Provincial Sales Tax Account (PDF, 300KB) form.

For more information about how PST applies to goods you acquire for direct sale to customers, and how you can manage your inventory if you plan to acquire goods for both contract use and direct sales, see Managing mixed inventories.

Paying PST on goods purchased in B.C.

You must pay PST on the purchase or lease of:

• Any goods you purchase in B.C. to fulfil a contract, even if you will affix or install the goods onto real property that is situated outside B.C.
• Any parts and materials you use to service or install goods that become part of real property upon installation
• Any other new or used goods you use in the day-to-day operation of your business, including (but not limited to):
  • Advertising materials (flyers, brochures)
  • Energy for heat and light (except electricity)
  • Equipment you use to perform your services including tools, computers, vehicles and cleaning supplies
  • Items you purchase to give away or sell as promotions
  • Shelving and display equipment
  • Office equipment, stationery and furniture
  • Uniforms

You must pay PST regardless of whether your contract is a time and materials contract or a lump sum contract.

Paying PST on goods purchased outside B.C.

As a contractor, if you purchase taxable goods outside B.C. for use outside B.C., you do not pay PST on the purchase. 

However, generally, you must self-assess PST if you purchase or lease taxable goods outside B.C. and bring or send them into B.C., or receive them in B.C. You must self-assess PST on the total amount paid to bring the goods into B.C., including transportation costs, customs, excise and any other costs, except the Goods and Services Tax (GST).

You must self-assess the PST due on your next PST return. If you do not have a PST number, you must self-assess the PST due using the Casual Remittance Return (FIN 405) (PDF, 250KB) form on or before the last day of the month following the month you sent, received or brought the goods into B.C. 

For more information, see  Bulletin PST 310, Goods Brought into B.C. (PDF, 410KB)