Exemptions where the customer agrees to pay PST

Last updated on April 1, 2025

You are not required to pay PST on goods you acquire to fulfil a contract if all three of the following conditions are met:

  • The goods will become part of real property situated in B.C.
  • You and the customer have agreed that the customer is liable for paying PST, and
  • There is qualifying evidence of your agreement

Depending on when you entered into the contract, different types of qualifying evidence may apply.

If you entered into a contract after February 22, 2022 your evidence can include:

  • A signed agreement between you and the customer that:
    • Sets out the purchase price of the goods
    • Expressly states that the customer is liable for paying PST
    • Expressly states that the customer’s PST is payable under section 80, 80.3 or 80.6 of the Provincial Sales Tax Act
  • An invoice signed by you and the customer that:
    • Lists the goods
    • Expressly states that the customer is liable for paying PST
    • Expressly states that the customer’s PST is payable under section 80, 80.3 or 80.6 of the Provincial Sales Tax Act
  • A Declaration of Agreement to Pay PST (FIN 488) (PDF, 180KB) form completed by you and the customer

Any document that is not mentioned above does not qualify as evidence. If you cannot provide evidence as described above, you must pay PST on the goods unless another exemption applies. You cannot make the customer liable for paying you the PST. If the customer does pay you the PST, they can apply to us for a refund.

Documenting an exemption

You must provide your supplier with your PST number at or before the time of sale of the goods. If you do not have a PST number, you must provide your supplier with a fully completed Certificate of Exemption – Contractor (FIN 491) (PDF, 200KB) form.

Claiming an exemption

To claim an exemption because the customer agrees to pay PST, you must:

  • Be registered as a PST collector before you supply the goods
  • Charge your customer PST on either your purchase price of the goods or the purchase price in the agreement you made, whichever is greater
  • Remit the PST you charged your customer, whether or not it has actually been collected yet (for example, if you make sales on credit.) The PST is payable by your customer when the purchase price of the goods is paid or becomes due, whichever is earlier

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