Tax Interpretation Manual: Consular Tax Exemption Regulation

Section 1 - Exemptions

CTER - SEC.1/Int.

References:

CTER: Section 2 “foreign affairs department”; Section 3

Interpretation (Issued: 2014/03; Revised: 2023/10)

Effective March 11, 2021, B.C. Reg. 65/2021 amends CTER section 1 to update a section reference, consequential to the addition of the definition of “foreign affairs department” in CTER section 2 [persons who are exempt].

Effective April 1, 2013, B.C. Reg. 127/2008 as amended by OIC 125/2013 provides under CTER section 1 that, subject to CTER section 3 [persons who are not exempt], the persons described in CTER section 2 [persons who are exempt], in their capacity as persons liable to pay tax under the Act, are exempt from the Provincial Sales Tax Act.

Section 2 - Persons Who Are Exempt

CTER - SEC.2/Int.-R.1

References:

CTER: Section 1

Interpretation (Issued: 2014/03; Revised: 2015/02; 2023/10)

Effective March 11, 2021, B.C. Reg. 65/2021 amends CTER section 2 by replacing “the Department of Foreign Affairs and International Trade of the government of Canada” with “the foreign affairs department,” which is defined as the federal department responsible for recognizing diplomatic privileges and immunities and accrediting consular posts.

Effective April 1, 2013, B.C. Reg. 127/2008 as amended by OIC 196/2013 sets out the persons who are eligible for the exemption under section 1 [exemptions].

R.1 Spouses (Issued: 2015/02)

Section 2(e) extends the consular exemption to spouses of persons listed in subsection (a) through (d). For the purposes of subsection (e), the Ministry interprets "spouse" to mean a person who is married to another person or a person who is living with another person in a marriage-like relationship, and has been living in that relationship for a continuous period of at least 2 years.

Section 3 - Persons Who Are Not Exempt

CTER - SEC.3/Int.

References:

CTER: Section 1

Interpretation (Issued: 2014/03)

Effective April 1, 2013, OIC 196/2013 repealed and replaced CTER section 3.

CTER section 3 provides that CTER section 1 [exemptions] does not apply to the following persons:

(a) Canadian citizens;

(b) permanent residents as defined in the Immigration and Refugee Protection Act (Canada);

(c) honorary consular officers.