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Provincial Sales Tax Act, Part 14 - Regulations

Last updated on August 14, 2024

Section 236 – General Regulation-Making Authority

PST - SEC.236/Int.

References:

Act: Section 1 "software", "tangible personal property", "taxable service"

Interpretation (Issued: 2013/12)

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 236 authority for the Lieutenant Governor in Council to make regulations as specified.

Subsection 236(1) provides that the Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

Subsection 236(2) provides that without limiting subsection 236(1), the Lieutenant Governor in Council may make regulations respecting any matter for which regulations are contemplated by the Act.

Subsection 236(3) provides that the authority to make regulations under another provision of the Act does not limit subsection 236(1) or subsection 236(2).

Subsection 236(4) provides that in making a regulation under the Act, the Lieutenant Governor in Council may do one or more of the following:

(a) delegate a matter to a person;

(b) confer a discretion on a person;

(c) make different regulations for different persons, tangible personal property, software, taxable services, places, things, circumstances, uses or transactions, or for different classes of persons, tangible personal property, software, taxable services, places, things, circumstances, uses or transactions;

(d) establish or define classes of persons, tangible personal property, software, taxable services, places, things, circumstances, uses or transactions.

Subsection 236(5) provides that a regulation made on or before March 31, 2016 under the Act may be made retroactive to April 1, 2013 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Section 237 – Regulations in Relation to Tax Payment Agreements

PST - SEC.237/Int.

References:

Act: Section 1 "collector", "eligible taxable service", "lease", "software"; Section 32

Interpretation (Issued: 2013/12; Revised: 2014/09; Revised: 2022/12)

Effective February 2018, Bill 2, Budget Measures Implementation Act, 2018 amended subsection 237(a)(ii) and 237(c) to include eligible taxable service for which the Lieutenant Governor in Council may make regulations in relation to tax payment agreements under section 32.

Effective April 1, 2013, Bill 8 - Budget Measures Implementation Act, 2014 amended paragraph 237(a) by including a reference to "delivery in British Columbia."

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 237 that the Lieutenant Governor in Council may make regulations in relation to tax payment agreements under section 32 [tax payment agreements in relation to tangible personal property and software].

Section 238 – Regulations In Relation To Tangible Personal Property

PST - SEC.238/Int.

References:

Act: Section 1 "tangible personal property"; Section 25; Section 51; Part 3 – Division 6; Section 68 "travel ratio"; Section 69; Section 84.1; Section 97

Interpretation (Issued: 2013/12; Revised: 2016/01)

Effective January 1, 2015, Bill 10, Budget Measures Implementation Act, 2015, amends section 238 by adding paragraph 238(d.1). The regulation-making powers contemplated by the new paragraph are related to the implementation of the full reciprocity plan under the International Registration Plan for multijurisdictional vehicles.

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 as amended by Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 provides under section 238 that the Lieutenant Governor in Council may make regulations in relation to tangible personal property as described in paragraph 238(a) through paragraph 238(f).

Section 239 – Regulations In Relation To Software

PST - SEC.239/Int.

References:

Act: Section 107

Interpretation (Issued: 2013/12)

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 as amended by Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 provides under section 239 that the Lieutenant Governor in Council may make regulations prescribing a period for the purposes of the descriptions of "BC usage" and "total usage" in subsection 107(2) [tax on business use of software on devices in and outside British Columbia], which period may be different for BC usage and total usage.

Section 240 – Regulations In Relation To Accommodation

PST - SEC.240/Int.

References:

Act: Section 1 "accommodation", "designated accommodation area", "designated major event accommodation area", "designated recipient", "eligible entity", "online marketplace facilitator", "purchase price"; Section 19; Section 26; Section 123; Section 123.02; Section 123.2; Section 123.3; Section 125; Section 240.01

Interpretation (Issued: 2013/12; Revised: 2016/01; 2023/08)

Effective November 22, 2022, Bill 42, Provincial Sales Tax Amendment Act, 2022, amended paragraph 240(1)(e) to reference the updated subsection 125(1)(a). The change is consequential to amendments introducing a tax on accommodation in a designated major event accommodation area.

Effective July 1, 2022, Bill 6, Budget Measures Implementation Act, 2022 repealed paragraph 240(1)(f), which authorized the Lieutenant Governor in Council to make regulations to exclude certain classes of online platforms from the definition of "online accommodation platform." Online accommodation platforms now fall under the definition of online marketplace facilitators. Paragraph 240(1)(g)(ii) was amended to refer to online marketplace facilitators instead of online accommodation platforms.

Effective October 1, 2018, Bill 2, Budget Measures Implementation Act, 2018, added two new regulation making authorities. Paragraph 240(1)(f) authorizes regulations to exclude certain classes of online platforms from the definition of "online accommodation platform." Paragraph 240(1)(g) authorizes regulations to exempt purchasers from paying the municipal and regional district tax (MRDT) in prescribed areas on accommodation sold through an online accommodation platform.

Effective March 25, 2015, Bill 10, Budget Measures Implementation Act, 2015 amended section 240 as follows:

  • Section 240(1)(a) was amended to refer only to "other services" rather than "other prescribed services." The amendment makes section 240 consistent with section 19(3), which was amended in 2014.

  • Subsection 240(4) was amended and subsection 240(4.1) was added to provide authority for regulations that require that the rate of municipal and regional district tax (MRDT) on accommodation that is prescribed in the Designated Accommodation Area Tax Regulation may only be changed if requested by the designated recipient.

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 as amended by Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 provides under section 240 authority for the Lieutenant Governor in Council to make regulations in relation to accommodation as specified.

Section 240.1 – Regulations In Relation To Online Marketplace Facilitators And Online Marketplace Sellers

PST - SEC.240.1/Int.

References:

Act: Section "lease", "online marketplace facilitator", "online marketplace seller", "sale"

Bulletin PST 142

Interpretation (Issued: 2023/08)

Effective July 1, 2023, Bill 10, Budget Measures Implementation Act, 2023, amended Section 240.1 to add regulatory powers to allow the Lieutenant Governor in Council to:

  • Specify that certain persons are not online marketplace sellers

  • Specify that certain persons are not online marketplace facilitators in relation to prescribed sales, leases or provisions.

This provides the Lieutenant Governor in Council the ability to modify who collects and remits tax (i.e., either the online marketplace facilitator or the online marketplace seller) on purchases made through an online marketplace.

Effective July 1, 2022, Bill 6, Budget Measures Implementation Act, 2022 added Section 240.1, which allows the Lieutenant Governor in Council to make regulations specifying that certain persons are not online marketplace facilitators.

Section 241 – Regulations In Relation To Exemptions

PST - SEC.241/Int.

References:

Act: Section 1 "software", "tangible personal property", "tax", "taxable service"; Section 137

Interpretation (Issued: 2013/12)

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 as amended by Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 provides under section 241 authority for the Lieutenant Governor in Council to make regulations in relation to exemptions as specified.

Subsection 241(1) provides that despite any other provision of the Act, the Lieutenant Governor in Council may make regulations providing for exemptions from one or more provisions of the Act or a regulation made under it, including, without limitation, regulations doing one or more of the following:

(a) exempting a person from a requirement to levy, collect, remit or pay all or a portion of tax imposed under the Act;

(b) exempting, in whole or in part, any tangible personal property, software or taxable service from taxation under the Act;

(c) establishing circumstances in which an exemption applies;

(d) setting conditions of, or limitations on, the application of an exemption.

Subsection 241(2) provides that for the purposes of section 137 [taxable component sold with a non-taxable component for single price], the Lieutenant Governor in Council may make regulations setting conditions of, or limitations on, the application of an exemption under section 137.

Section 242 – Regulations In Relation To Refunds

PST - SEC.242/Int.

References:

Act: Section 1 "eligible charity"; Section 162; Section 165

Interpretation (Issued: 2013/12; Revised: 2014/09, 2024/08)

Effective March 25, 2021, Bill 12, Miscellaneous Statutes (Minor Corrections) Amendment Act, 2021 amends subsection 242(4) to correct references to “Division 6” of Part 3 [Conveyances used interjurisdictionally] to “Division 7” [Multijurisdictional vehicles].

Effective March 24, 2014, Bill 8 - Budget Measures Implementation Act, 2014 amended section 242 by adding a new subsection (4). The new subsection adds a regulation making authority in relation to the new refund added in section 75.2 [refund from Insurance Corporation of British Columbia authorized under regulations].

Effective April 1, 2013, Bill 8 - Budget Measures Implementation Act, 2014 amended section 242. Paragraph 242(1)(a.1) was amended by adding a reference to "parents' advisory council." The amendment is part of a series of amendments that expand the authority of the director to pay a refund to a PAC where the PST was paid by a school or school board on purchases using PAC raised funds.

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 as amended by Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 provides under section 242 authority for the Lieutenant Governor in Council to make regulations in relation to refunds as specified.

Section 243 – Regulations In Relation To Refunds And Credits In Relation To Exclusive Products

PST - SEC.243/Int.

References:

Act: Section 1 "director", "direct seller", "exclusive product"; Section 160

Interpretation (Issued: 2013/12)

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 243 that the Lieutenant Governor in Council may make regulations providing for a refund or credit in relation to tax collected, remitted or paid on the sale of exclusive products, including, without limitation, regulations doing one or more of the following:

(a) permitting or requiring the payment of a refund or credit by the director or by a direct seller;

(b) establishing circumstances in which a refund or credit may or must be paid;

(c) setting conditions of, or limitations on, the payment of a refund or credit.

Section 244 – Regulations In Relation To Claims Of Solicitor-Client Privilege

PST - SEC.244/Int.

References:

PSTR: Section 97

Interpretation (Issued: 2013/12)

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 as amended by Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 provides under section 244 authority for the Lieutenant Governor in Council to make regulations in relation to claims of solicitor-client privilege as specified.

Subsection 244(0.1) provides that in section 244, "client" means a particular client or a particular former client.

Subsection 244(1) provides that section 244 applies in relation to a record or a part of a record

(a) that is in the possession of a lawyer and that is about to be inspected, audited or examined under the Act or about to be seized under a warrant in relation to an offence under the Act, and

(b) for which the lawyer at that time makes a claim of solicitor-client privilege for a client of the lawyer in relation to the record or part of the record.

Subsection 244(2) provides that the Lieutenant Governor in Council may make regulations in relation to a record or a part of a record referred to in subsection 244(1) as follows:

(a) establishing procedures for allowing a record or part of a record to be retained or seized and to be held in a secure manner until

(i) the claim of solicitor-client privilege is waived by the client, or

(ii) the claim is determined, or the record or part of the record is otherwise dealt with, on application to the Supreme Court in accordance with the regulations;

(b) establishing a right to apply to the Supreme Court to resolve a claim of solicitor-client privilege regarding a record or part of a record retained or seized under paragraph 244(2)(a) and establishing how the court is to deal with such an application.

Section 245 – Regulations Specifying Tax For Coin-Operated Purchases

PST - SEC.245/Int.

References:

Act: Section 1 "purchase price", "software", "taxable service"

Interpretation (Issued: 2013/12)

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 245 authority for the Lieutenant Governor in Council to make regulations specifying the amount of tax payable on coin-operated purchases.

Subsection 245(1) provides that the Lieutenant Governor in Council may make regulations specifying the amount of tax payable on a purchase referred to in subsection 245(2).

Subsection 245(2) provides that despite any other section of the Act, if the purchase price for tangible personal property, software or a taxable service that is taxable under the Act is to be paid by coin or other legal tender because of the equipment by or through which the purchase is made, the Lieutenant Governor in Council may, by regulation, specify the amount of tax payable on the purchase in an amount that is equal to or less than the amount that would otherwise be payable under the Act.

Section 246 – Other Regulations

PST - SEC.246/Int.

References:

Act: Section 1 "collector", "legal services", "lease", "software", "taxable service", "use"; Section 127; Section 181; Section 185; Section 187; Section 222; Section 230

Interpretation (Issued: 2013/12; Revised: 2016/01)

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 amends section 246(f) by adding a new paragraph (iv). The new provision allows the Ministry of Finance to require records from a broader category of persons.

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides a series of regulation making authorities for the Lieutenant Governor in Council.