Exemption for containers and packaging materials

You are not required to pay PST on containers and packaging materials (except reusable containers) you obtain solely for the purpose of packaging goods for sale or lease, or if you provide the packaging to your customers with their retail purchases of goods.

You are required to pay PST on containers and packaging materials if you use them for any other purpose, such as storing, handling or shipping goods, or if you use them to provide a service (such as using the containers to fulfil a contract to package items for moving or storage.)

Generally, you are not required to charge your customers PST on the containers and packaging you provide with goods and services. If you charge your customer for goods or services, and then charge them separately for the cost of containers and packaging, you are required to charge PST separately on the containers and packaging.

There are other limited circumstances when you may be required to charge PST on the fair market value of containers and packaging materials. For more information, see Bulletin PST 305, Containers and Packaging Materials (PDF, 340KB).