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Effective April 1, 2021, soda beverages will no longer qualify for the exemption for food products for human consumption. PST will apply to all retail sales of soda beverages at a rate of 7%. For more information, see Notice 2021-002, Notice to Sellers of Soda Beverages (PDF).
In some cases provincial sales tax (PST) doesn't need to be paid on purchases or leases. The following exemptions are available to everyone and don't require any documentation:
- Food for human consumption (e.g. basic groceries and prepared food such as restaurant meals)
- Books, newspapers and magazines
- Children-sized clothing
- Prescription medications and household medical aids such as cough syrup and pain medications
Other exemptions are available in certain circumstances and may require documentation. These include exemptions for:
- health and medical products, and equipment for persons with disabilities (PDF)
- adult-sized clothing and footwear for kids under 15 years of age (PDF)
- school supplies for students (PDF)
- safety equipment and protective clothing (PDF)
- farming, fertilizers, fishing and aquaculture (PDF)
- purchases by First Nations individuals and bands on reserve land (PDF)
- goods purchased for resale or lease (PDF)
For a more complete list of exemptions refer to the PST Exemptions and Documentation Requirements bulletin (PST 200) (PDF).
How to provide an exemption
As a business, when you provide an exemption to a customer you may need to request information or documentation. For information about what exemptions require information or documentation, refer to the PST Exemptions and Documentation Requirements bulletin (PST 200) (PDF).
It's the customer's responsibility to ensure they qualify for an exemption. If the customer claims an exemption that they don't qualify for, they are liable for any tax, interest and penalties associated with the purchase or lease. However, if you had reason to believe your customer wasn't entitled to the exemption and provided the exemption, you may also be subject to an assessment.
If your customer isn't able to provide the required information or documentation at or before the time of the sale or lease, you must charge and collect, and your customer must pay, PST on that sale or lease. However, if your customer is able to provide the required information or documentation within 180 days of the purchase or lease, your business may refund or credit the PST charged.
When you provide an exemption to a customer you must keep specific information in your records to show why you didn't charge PST. If you don't do this, you can be assessed for the tax that should have been collected, plus penalties and interest.