Provincial Sales Tax Act, Part 8 - Registration and Tax Collection

Division 1 — Registration

Section 168 – Registration

PST - SEC.168/Int.-R.1

References:

Act: Section 1 "collector", "director", "direct seller", "exclusive product", "independent sales contractor", "lessor", "online marketplace facilitator", "online marketplace service", "registrant", "registration number", "small seller", "software", "taxable service", "vendor"; Section 169; Section 170; Section 171; Section 172; Section 172.1; Section 172.2; Section 172.3; Section 172.4; Section 173; Section 174; Section 175; Section 177; Section 179.1; Section 202; Section 211; Section 216; Section 232; Section 240; Section 240.01

Bulletin PST 001

Interpretation (Issued: 2013/12; Revised: 2017/05, 2023/08, 2024/05)

Effective April 25, 2024, Bill 3, Budget Measures Implementation Act, 2024 amended subsection 168(2) to clarify that the director specifies how the application form and any information required by the director can be provided to the ministry (e.g. by mail, online, etc.).

Effective July 1, 2022, Bill 6, Budget Measures Implementation Act, 2022, added two new categories of applicants for registration purposes. The first category is online marketplace facilitators required to be registered under section 172.3, and the second category is persons who provide online marketplace services who are required to be registered under section 172.4.

Paragraph 168(1)(i) was repealed, removing persons located outside of B.C. who operate an online accommodation platform as an applicant category. They now fall under the definition of online marketplace facilitators.

Effective October 1, 2018, Bill 2, Budget Measures Implementation Act, 2018 added paragraph 168(1)(i) to authorize a person located outside of B.C. who operates an online accommodation platform to register to collect tax.

Effective May 19, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended subparagraph 168(1)(h)(iii) to expand the definition of "applicant" to include businesses located outside Canada that purchase TPP in Canada for the purpose of fulfilling an agreement to sell the goods to persons in BC, and businesses that hold goods in inventory in Canada but outside BC at the time the goods are sold or provided to a person in BC.

This amendment expands the types of businesses that can voluntarily register under the Act to collect and remit PST. Without this amendment, the province is unable to approve the registration applications from these businesses.

Effective September 1, 2015, Bill 10, Budget Measures Implementation Act, 2015 amended paragraph 168(1)(d) by adding a reference to section 172.1 [person located outside British Columbia must be registered]. This amendment is consequential to the addition of section 172.1 and ensures that persons required to be registered under that section are considered "applicants" for the purposes of section 168.

Effective April 1, 2013, Bill 13, Finance Statutes Amendment Act, 2015 amended section 168. The amendment provides two new categories of persons who may apply to become registrants under the Act:

1. persons located outside Canada who sell commercial goods that are brought, sent or caused to be delivered into British Columbia from a place outside Canada.

2. persons located outside Canada who purchase tangible personal property in British Columbia for the purpose of fulfilling an agreement to sell or provide the tangible personal property to a person in British Columbia. These people are often referred to as drop shippers.

Under the previous provision, purchasers of goods for commercial use from out-of-country sellers and purchasers of goods from out-of-country drop shippers were required to self-assess the tax payable. Allowing these out-of-country sellers to register and collect tax removes the need for the purchaser to self-assess.

Section 168 (9.1) is also amended to make reference to the new section 168(1)(h). The provision protects the government from the risk that the seller will not remit tax collected to the government by making them subject to court proceedings for a breach of contract.

Effective March 24, 2014, Bill 8 - Budget Measures Implementation Act, 2014 amended subsection 168(1). The amendments introduce two new types of "applicant" (see paragraphs 168(1)(f) and (g)) The first new category is persons located in Canada, but outside BC and who sell to a person in BC TPP, software or a taxable service. The second new type of applicant is a person located outside Canada and who sells to a person in BC software or taxable services.

Registration for these two new types of applicants are entirely optional (i.e., there is no corresponding amendment to require these applicants to register under section 169). These new provisions provide authority for the director to register out of province businesses that wish to register for PST as a convenience to their customers. These amendments do not impact any obligation an out of province person may have under section 172.

Note: Paragraph 168(1)(g) (i.e., those outside Canada) does not include persons who sell TPP. These persons are not able to register (voluntary or otherwise) because the Canada Border Services Agency (CBSA) is already collecting PST on personal goods imported at international borders.

Under subsection 168(7), in relation to persons that are inside Canada but outside BC (i.e., the applicants under paragraph 168(1)(f)) the director may require the applicant enter into an agreement setting out the duties of the applicant and any other matters the director considers necessary or advisable. In the case of applicants that are outside Canada (i.e., applicants under paragraph 168(1)(g)), the director must consider the applicant suitable and the applicant must enter into an agreement setting out the duties of the applicant and any other matters the director considers necessary or advisable.

Effective December 1, 2012 and April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 168 the rules regarding registration under the Act.

Note: paragraph 168(1)(e) and subsections 168(2) – (10) were brought into force on December 1, 2012 to provide authority for the Ministry to register businesses on and after January 2, 2013 as part of the re-implementation of the PST on April 1, 2013. Paragraphs 168(1)(a) to 168(1)(d) were brought into force on April 1, 2013.

Subsection 168(1) sets out a definition for "applicant." Under subsection 168(2), an "applicant" may apply to register. Section 168 also contains specific provisions on situations when the director may refuse registration (see subsection 168(7)) and when the director must refuse to register an applicant (see subsection 168(8)).

Section 168 works with section 169 to determine who is required to register and who is not able to register. The two provisions must be read together.

R.1 Motor Vehicle Lessors That Are Not Motor Dealers (Issued: 2016/06)

Under subsection 168(8), the director must refuse to register an applicant if the applicant is or proposes to be a motor dealer, as defined in the Motor Dealer Act and is not registered under that Act.

However, some businesses that sell and/or lease vehicles are not required to be registered as motor dealers. For example, the Motor Dealer Sales Authority does not require leasing companies that are assigned lease agreements to be registered as motor dealers. However, if a leasing company leases vehicles in the ordinary course of business and enters into leases in BC, they are a lessor under the Act and are required to be registered under the Act even if they are not captured by the definition of "motor dealer".

Section 169 – Vendors And Lessors Must Be Registered

PST - SEC.169/Int.

References:

Act: Section 1 "collector", "lessee", "lessor", "online marketplace facilitator", "online marketplace seller", "retail sale", "small seller", "software", "taxable service", "vendor"; Section 168; Section 174; Section 179.1; Section 179.3; Section 202

Bulletin PST 001

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

Effective July 1, 2022, Bill 6, Budget Measures Implementation Act, 2022, repealed subsection 169(6) due to the elimination of the definition of "online accommodation platform." They are now considered online marketplace facilitators. Subsection 169(6) is effectively replaced by section 179.3, which provides that for facilitated transactions, the online marketplace facilitator, and not the online marketplace seller, is the collector in respect of sales, leases, and provisions made through their platform.

Effective October 1, 2018, Bill 2, Budget Measures Implementation Act, 2018 added subsection 169(6), which prohibits a vendor from selling or providing accommodation through an online accommodation platform unless the vendor or the online accommodation platform is registered.

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 169 that a vendor or lessor must not sell or lease tangible personal property or sell or provide software or a taxable service in British Columbia at a retail sale unless they are registered at the time of the sale or lease, or only make exempt sales or leases.

Subsection 169(1) provides that a vendor must not sell or provide tangible personal property in British Columbia at a retail sale unless the vendor

(a) is registered under section 168 [registration] at the time of sale, or

(b) sells or provides only tangible personal property that is exempt from tax imposed under the Act.

Subsection 169(1.1) provides that subsection 169(2) applies to a lessor who does one or more of the following:

(a) enters into leases in British Columbia with a lessee;

(b) leases, to a lessee or any other person referred to in the definition of "lessee", tangible personal property that is in British Columbia at the time the lease is entered into;

(c) transfers possession of or delivers the tangible personal property to a lessee, or any other person referred to in the definition of "lessee", in British Columbia.

Subsection 169(2) provides that a lessor to whom subsection 169(2) applies must not do one or more of the activities referred to in paragraphs 169(1.1)(a) to 169(1.1)(c) unless the lessor

(a) is registered under section 168 at the time the lessor does the activity, or

(b) leases only tangible personal property that is exempt from tax imposed under the Act.

Subsection 169(3) provides that a vendor must not sell or provide software in British Columbia at a retail sale unless the vendor

(a) is registered under section 168 at the time of sale, or

(b) sells or provides only software that is exempt from tax imposed under the Act.

Subsection 169(4) provides that a vendor must not sell or provide a taxable service in British Columbia at a retail sale unless the vendor

(a) is registered under section 168 at the time of sale, or

(b) sells or provides only a taxable service that is exempt from tax imposed under this Act.

Subsection 169(5) provides that despite paragraphs 169(1)(a), 169(3)(a) and 169(4)(a), a person who is a vendor on ceasing to be a small seller must be registered under section 168 on or before the last day of the first month in which the person is a vendor.

Section 170 – Contractor Must Be Registered

PST - SEC.170/Int.

References:

Act: Section 1 "collector", "small seller"; Section 79; Section 80; Section 80.5; Section 80.6; Section 168; Section 202

Bulletin PST 001; Bulletin PST 104

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 170 that a contractor must be registered at the time they supply tangible personal property if under an agreement referred to in section 79 [contractor exempt from tax under section 37 or 49] or section 80.5 [transitional tax on tangible personal property used by contractor to improve real property] with their customer that transfers the liability for the tax to the customer.

Subsection 170(1) provides that section 170 applies to a contractor who

(a) has entered into an agreement referred to in paragraph 79(1)(c) or paragraph 79(2)(c) in respect of liability for tax imposed under section 80 [tax on tangible personal property used to improve real property if contractor exempt] in relation to a supply of tangible personal property, or

(b) has entered into an agreement referred to in paragraph 80.5(6)(a) in respect of liability for tax imposed under section 80.6 [transitional tax on tangible personal property used to improve real property] in relation to a supply of tangible personal property.

Subsection 170(2) provides that a contractor to whom section 170 applies must not supply the tangible personal property referred to in subsection 170(1) unless the contractor is registered under section 168 [registration] at the time the contractor supplies the tangible personal property.

Section 171 – Direct Seller Must Be Registered

PST - SEC.171/Int.

References:

Act: Section 1 "collector", "direct seller", "exclusive product", "independent sales contractor", "small seller"; Section 168; Section 202

Bulletin PST 001; Bulletin PST 004

Interpretation (Issued: 2013/12; Revised: 2017/05)

Effective July 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended the wording in subsection 171(2) from "to be delivered into British Columbia" to "to be delivered in British Columbia." This change requires a direct seller who causes TPP to be delivered into or within BC to be registered under section 168 of the Act.

Effective April 1, 2013, Bill 8 - Budget Measures Implementation Act, 2014 repealed and replaced section 171. The section prohibits a direct seller from selling an exclusive product to an independent sales contractor in BC unless the direct seller is registered (or sells only exempt exclusive products).

The section also imposes an obligation on direct sellers who are located in Canada but outside BC. Such persons must be registered at the time they cause an exclusive product sold to an independent sales contractor to be delivered in BC. This rule does not apply if the direct seller only sells exempt exclusive products.

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 171 that a direct seller must not sell an exclusive product to an independent sales contractor in British Columbia unless the direct seller is registered under section 168 [registration] at the time of sale.

Section 172 – Person Located in Canada but Outside British Columbia Must be Registered

PST - SEC.172/Int.-R.3

References:

Act: Section 1 "collector", "electronic device", "small seller", "software", “tangible personal property”, "telecommunication service"; Section 168; Section 172.1; Section 172.2; Section 174; Section 179.1; Section 202

Bulletin PST 001

Interpretation (Issued: 2013/12; Revised: 2016/01; 2021/10; 2023/10; 2024/11)

Effective April 1, 2013, Bill 3, Budget Measures Implementation Act, 2024 amended section 172 (2.1) of the Provincial Sales Tax Act by striking out "on or with" wherever it appears and substituting "on, through or with". This ensures consistency with an amendment to definition of “use”, which provides software may be used “on, through or with other software or electronic devices”.

The amendment was part of a series of amendments made to clarify the application of tax to software. For more information, see PST – SEC.1/Software/Int.

The amendment was retroactive to April 1, 2013, to clarify that it applies since the reimplementation of the PSTA.

Effective April 1, 2021, Bill 4, Budget Measures Implementation Act, 2020, added subsection 172(1.1) by providing a registration requirement for certain Canadian sellers of goods. These amendments leave the existing registration requirements for Canadian sellers of goods while adding a new rule for Canadian goods sellers. The new rule creates a $10,000 BC revenue sales threshold before a person is required to register as a PST collector.

An exception to the $10,000 revenue threshold applies to sellers of vapour products whereby a person who sells vapour products and otherwise meets the conditions of section 172(1.1) is required to register regardless of their revenue.

Effective July 1, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amends the wording in subsection 172(1) from "to be delivered into British Columbia" to "to be delivered in British Columbia." This change requires a person who is located within Canada but outside BC, who causes tangible personal property to be delivered into or within BC, to be registered under section 168 of the Act. This change ensures businesses that source all their goods in BC to fulfil orders to customers in BC are still covered by the out-of-province registration requirement.

Effective March 25, 2015, Bill 10, Budget Measures Implementation Act, 2015 amended section 172 by adding references to "provides" or "provided" after the words "sells" or "sold" in paragraph (1)(c), subparagraphs (1)(c)(ii) and (1)(c)(iv) and subsections (2) and (2.2). This ensures consistency with similar provisions in the Act that apply to the sale or provision of TPP, including the new section 172.1 [person located outside British Columbia must be registered].

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 172 that businesses that are located in Canada but outside British Canada that, in the ordinary course of business, undertake specified activities, must be registered to collect and remit PST.

R.1 Out-Of-Country Telecommunication Providers (Issued: 2014/07)

Telecommunication service providers that have no location in Canada (e.g., certain Internet TV providers) are not required to register or collect PST even if they solicit and accept orders from locations in British Columbia. Such businesses do not meet the conditions under subsection 172(2.1) because they are not "located in Canada."

Although these businesses are not required to register, they may voluntarily register under paragraph 168(1)(g).

R.2 Guidelines For Determining Who Must Be Registered (Issued: 2014/08)

The following guidelines are intended to assist in determining whether a seller is required to register in accordance with section 172.

Solicitation

To meet the criterion under subparagraphs 172(1)(a) and 172(2.1)(a), a seller must take some action that clearly indicates intent to solicit orders to purchase TPP /software /telecommunication services from persons located in BC.Solicitation can occur by any means including mail, Internet, fax, or newspaper advertisement so long as there is a conscious decision to enter the BC market. The following are some examples of what is/is not solicitation.

• Any seller who sends mail order information or catalogues into BC, or makes that information generally available to customers in the province is engaged in the act of soliciting. For example, flyers or advertising left out on a table at a home show in BC regarding mail order or catalogue goods would be considered solicitation, as the seller is consciously targeting the BC market.

• Solicitation via a website that is accessible from anywhere in the world would not meet the solicitation criteria as there is no decision to enter the BC market. However, a seller who operates such a website and also actively solicits in the province (e.g., sends promotional material into the province or advertises on broadcasts aired in the province), would meet the requirement.

• Telemarketers who make phone calls to BC numbers are actively soliciting sales in BC and meet the criterion.

• Placing an advertisement in a BC or a Western edition of a national publication that is distributed in the province generally represents a conscious decision to solicit in the BC market and would meet the criterion. However, there may be situations where placing an ad in a Western edition may not meet the criteria. For example, if BC is an insignificant part of the seller's market (i.e., their primary market is the prairie provinces), advertising in a Western edition of a publication may not represent a conscious decision to enter the BC market. BC may have been included only because of how the publisher distributes its product.

• If a seller contracts with a third party or agent to solicit orders in BC, the seller has fulfilled the criterion for solicitation.

Accepting Orders

To meet the criterion under subparagraphs 172(1)(b) and 172(2.1)(b), a seller must accept orders to purchase TPP /software /telecommunication services from a location in BC. Accepting orders of TPP /software /telecommunication services by any means, including by mail, telephone, fax, e-mail, or over the Internet from a location in the province would fulfill this criterion.

Delivering into BC

To meet the criterion under subparagraph 172(1)(d), the seller must "cause" (i.e., facilitate) delivery of the TPP into BC. For example, if a seller uses a third party or agent (e.g., a courier company) to deliver the TPP into BC, the seller has fulfilled this criterion. However, if the purchaser arranges for a courier company to pick up the TPP from the seller's place of business, the seller has not "caused" the TPP to be delivered into BC.

R.3 Determining Business Location (Issued: 2015/04)

For Ministry policy on determining whether a business is located in Canada but outside British Columbia, see SEC.1/VENDOR/R.2.

Section 172.1 - Person Outside British Columbia Must be Registered

PST - SEC.172.1/Int.-R.1

References:

Act: Section 1 "retail sale", "sale"; Section 168; Section 172; Section 172.2; Section 174; Section 179.1; Section 202

Bulletin PST 001

Interpretation (Issued: 2016/01; Revised: 2021/10; 2024/11)

Effective April 1, 2013, Bill 3, Budget Measures Implementation Act, 2024 amended section 172.1 (1.1) of the Provincial Sales Tax Act (PSTA) by striking out "on or with" wherever it appears and substituting "on, through or with". This ensures consistency with an amendment to definition of “use”, which provides software may be used “on, through or with other software or electronic devices”.

The amendment was part of a series of amendments made to clarify the application of tax to software. For more information, see PST – SEC.1/Software/Int.

The amendment was retroactive to April 1, 2013, to clarify that it applies since the reimplementation of the PSTA.

Effective April 1, 2021, Bill 4, Budget Measures Implementation Act, 2020, added subsection 172.1(1.1) by providing a registration requirement for certain Canadian and foreign sellers of software and telecommunication services. These amendments leave the existing registration requirements for Canadian sellers of software and telecommunication services intact while adding a new rule for Canadian and foreign sellers of software and telecommunication services. The rule creates a $10,000 BC revenue sales threshold before a person is required to register as a PST collector.

Subsection 172.1(1.1) provides that a person must be registered at the time the person provides software for use on, through or with an electronic device ordinarily situated in BC or provides a telecommunication service if they, in the ordinary course of their business, do all of the following three things.

First, accept orders to purchase software for use on, through or with an electronic device ordinarily situated in BC or to purchase a telecommunication service if the orders originate from BC.

Second, sell or provide software for use on, through or with an electronic device ordinarily situated in BC or a telecommunication service, in response to the orders mentioned above, and in an amount that meets the BC minimum revenue threshold set out in section 172.2.  The minimum threshold under section 172.2 is $10,000.

Third, sell or provide software for use on, through or with an electronic device ordinarily situated in BC or sells or provides a telecommunication service to a person in BC for use or benefit,

(i) by the person,

(ii) by a third person at the expense of the person to whom the software or telecommunication service is sold or provided,

(iii) by a principal for whom the person acts as agent, or

(iv) by a third person at the expense of the principal for whom the person to whom the software or telecommunication service is sold or provided acts as agent.

Subsections (1) and (1.1) do not apply to a person if the person sells or provides only tangible personal property, software or a telecommunication service that is exempt from tax. 

Subsection (3) clarifies that sections 83 and 85 of the Financial Administration Act do not apply to a person who is required under subsection (1) or (1.1) to be registered.

Effective September 1, 2015, Bill 10, Budget Measures Implementation Act, 2015 added section 172.1 as a mandatory registration provision. Businesses that are located outside BC and, in the ordinary course of business, undertake specified activities, must be registered to collect and remit PST.

The specific activities include the requirement that the business holds, in inventory, the TPP that it is selling or providing to persons in BC at the time the TPP is sold or provided. This provision is intended to ensure that businesses that use third-party warehouses or fulfillment houses to store inventory and fulfill orders to BC customers must be registered, even if they are located outside BC.

R.1 Determining Business Location (Issued: 2015/04)

For Ministry policy on determining whether a business is located outside British Columbia, see SEC.1/VENDOR/R.2.

Section 172.2 – British Columbia Minimum Revenue Threshold

PST - SEC.172.2/Int.

References:

Act: Section 1 "retail sale”, “sale”, “software”, “telecommunication service”; Section 168; Section 172; Section 172.1; Section 174; Section 202

Bulletin PST 001

Interpretation (Issued: 2021/10)

Effective April 1, 2021, Bill 4, Budget Measures Implementation Act, 2020, added section 172(1.1) and section 172.1(1.1) as mandatory registration provisions. These provisions require that certain Canadian sellers of goods and certain Canadian and foreign sellers of software and telecommunication services must be registered to collect and remit PST if a specified BC revenue threshold is met.  Bill 4 also added section 172.2. The section provides the revenue threshold for the purposes of sections 172(1.1) and 172.1(1.1).

Subsection 172.2(1) provides that a person located in Canada but outside BC meets the minimum BC revenue threshold if, in respect of BC,

(a) the person's gross revenue in the preceding 12 months from all retail sales and leases of tangible personal property and all sales and provisions of software and telecommunication services is greater than $10,000, or

(b) the person's reasonable estimate of the person’s gross revenue in the 12 months after the 12 months referred to in paragraph (a) from all sales and provisions of software and telecommunication services is greater than $10,000.

Subsection 172.2(2) provides that a person located outside Canada meets the minimum BC revenue threshold if, in respect of BC,

(a) the person's gross revenue in the preceding 12 months from all sales and provisions of software and telecommunication services is greater than $10 000, or

(b) the person's reasonable estimate of the person's gross revenue in the 12 months after the 12 months referred to in paragraph (a) from all sales and provisions of software and telecommunication services is greater than $10 000.

Section 172.3 – Online Marketplace Facilitator Must be Registered

PST - SEC.172.3/Int.

References:

Act: Section 1 "accommodation", "collector", "facilitate", "lease", "legal services", "online marketplace facilitator", "online marketplace seller", "registrant", "retail sale", "sale", "software", "tangible personal property", "taxable service", "use"; Section 168; Section 174; Section 179; Section 179.3; Section 202

Bulletin PST 142

Interpretation (Issued: 2023/08; Revised: 2024/11)

Effective April 1, 2013, Bill 3, Budget Measures Implementation Act, 2024 amended section 172.3 (1) (b) of the Provincial Sales Tax Act (PSTA) by striking out "on or with" wherever it appears and substituting "on, through or with". This ensures consistency with an amendment to definition of “use”, which provides software may be used “on, through or with other software or electronic devices”.

The amendment was part of a series of amendments made to clarify the application of tax to software. For more information, see PST – SEC.1/Software/Int.

The amendment was retroactive to April 1, 2013, to clarify that it applies since the reimplementation of the PSTA.

Effective July 1, 2022, Bill 6, Budget Measures Implementation Act, 2022, added section 172.3. Subsection 172.3(1) requires that an online marketplace facilitator must be registered for PST under section 168 [registration] at the time they facilitate an online marketplace seller’s:

• Retail sale, provision or lease of tangible personal property located in Canada at the time of the sale, provision or lease (or in prescribed circumstances, outside Canada) to a person in B.C. for use in consumption in B.C.
• Retail sale or provision of software for use on or with an electronic device ordinarily situated in B.C.
• Retail sale or provision of accommodation in B.C.
• Retail sale or provision of other taxable services (other than legal services) to a person in B.C.

Subsection 172.3(2) relieves an online marketplace facilitator from the registration requirement if the gross value of the sales, leases, and provisions they make directly or facilitate for online marketplace sellers for the preceding 12 months, or estimated sales for the next 12 months, is $10,000 or less.

Subsection 172.3(3) relieves an online marketplace facilitator from registration if they are one of two or more joint operators, and at least one of the other online marketplace facilitators is a registrant, who levies and collects all tax payable.

Subsection 172.3(4) relieves an online marketplace facilitator from registration if they facilitate only exempt sales, provisions and leases of tangible personal property, or exempt sales and provisions of software or taxable services (other than legal services).

Section 172.4 – Person Who Provides Online Marketplace Services Must Be Registered

PST - SEC.172.4/Int.

References:

Act: Section 1 "collector", "lease", "online marketplace service", "sale", "tangible personal property", "taxable service", "vendor"; Section 134.3; Section 168; Section 174; Section 202

Bulletin PST 142

Interpretation (Issued: 2023/08)

Effective July 1, 2023, Bill 10, Budget Measures Implementation Act, 2023, removed the reference to section 134.3(2). See SEC.134.3/Int. for more detail.

Effective July 1, 2022, Bill 6, Budget Measures Implementation Act, 2022, added section 172.4. Subsection 172.4(1) requires that a person located outside B.C. who sells or provides an online marketplace service must be registered for PST under section 168 [registration] if the service is taxable under subsections 134.3(1) or (2).

Subsection 172.4(2) relieves a person who sells or provides online marketplace services from the registration requirement if in respect of B.C. the gross revenue from all sales, leases, and provisions they make for the preceding 12 months, or estimated sales for the next 12 months, is $10,000 or less.

Note that section 172.4(1) only refers to persons located outside British Columbia. The reason for this is that the normal vendor rules apply to any person located in British Columbia who sells online marketplace services because an online marketplace service is a “taxable service” and therefore covered by paragraph (c) of the definition of “vendor.”

Section 173 – Suspension Or Cancellation Of Registration

PST - SEC.173/Int.

References:

Act: Section 1 "director", "online marketplace facilitator", "registrant"; Section 168 "applicant"; Section 174; Section 175; Section 177; Section 179.1; Section 211; Section 216

Bulletin PST 001

Interpretation (Issued: 2013/12; Revised 2021/07; 2023/08)

Effective July 1, 2023, Bill 10, Budget Measures Implementation Act, 2023, removed a reference to section 168(1)(i) from paragraph 173(3)(g). Paragraph 168(1)(i) was repealed effective July 1, 2022.

Effective July 1, 2022, Bill 6, Budget Measures Implementation Act, 2022, removed a reference to section 168(1)(i) from paragraph 173(1)(g). Paragraph 168(1)(i) was repealed to remove persons located outside of B.C. who operate an online accommodation platform as an applicant category. They now fall under the definition of online marketplace facilitators.

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, provides under section 173 consistent terminology for the purposes of clarifying that the general rules for giving documents apply. For example, by replacing "deliver" with "given". 

Effective April 11, 2019, Bill 5, Budget Measures Implementation Act, 2019 amends PSTA section 173 (1) and 173(3) to expand the director’s authority to suspend or cancel a person’s registration in essentially the same circumstances that the director has authority under section 168 [registration] to refuse an applicant’s registration. Previously, only some of the grounds for refusal to register, such as if the person knowingly gave false information on a registration application, were explicitly enumerated grounds for suspension or cancellation under section 173. Sections 173(1)(e) and 173(3)(e) also expand the previous authority to be consistent with section 168(7)(c) by including persons who have refused or neglected to comply with any act (or its regulation) that imposes tax.

Subsection 173(1.1) and 173(3.1) are added to provide authority to the director to suspend or cancel PST registration of the motor dealers who no longer qualify to register under section 168 due to suspension or cancellation of registration under the Motor Dealer Act. The notice requirements when cancelling the PST registration under section 173(3.1) are the same as for section 173(3).

Effective February 28, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 amended subsection 173(3) by clarifying a cross reference by adding "under section 168" after "the person’s registration".

Effective December 1, 2012, Bill 54, Provincial Sales Tax Act, 2012 provides under section 173 the power of the director to suspend or cancel a registration in certain circumstances.

Subsection 173(1) provides that the director may, without advance notice to a person, suspend the person's registration under section 168 [registration] for a period of up to 60 days

(a) if the director is satisfied that the person knowingly gave false information on an application for registration, or

(b) if the person refuses or neglects to comply with

(i) a provision of the Act or the regulations,

(ii) a condition imposed by the director under subsection 168(4), or

(iii) a requirement of the director to deposit a bond under section 216 [collection bond].

Subsection 173(2) provides that if the director suspends the registration of a person under subsection 173(1), the director must, as soon as reasonably possible,

(a) give the person written reasons for the suspension, and

(b) provide the person with an opportunity to show the director why the suspension should be lifted.

Subsection 173(3) provides that subject to subsection 173(4), the director may, by notice delivered to a person, cancel the person's registration under section 168

(a) if the director is satisfied that the person knowingly gave false information on an application for registration, or

(b) if the person refuses or neglects to comply with

(i) a provision of the Act or the regulations,

(ii) a condition imposed by the director under subsection 168(4), or

(iii) a requirement of the director to deposit a bond under section 216.

Subsection 173(4) provides that before cancelling a person's registration under subsection 173(3), the director must

(a) give the person notice of the reasons for the proposed cancellation, and

(b) provide the person with an opportunity to show the director why the registration should not be cancelled.

Subsection 173(5) provides that cancellation of a person's registration under subsection 173(3) takes effect on the later of

(a) the date the notice of cancellation under subsection 173(3) is delivered to the person, and

(b) the date stated in the notice.

Subsection 173(6) provides that a suspension or cancellation of a person's registration under section 173 does not relieve the person from any obligation under the Act.

Section 174 – When Registrant Must Notify Director

PST - SEC.174/Int.

References:

Act: Section 1 "director", "facilitate", "online marketplace facilitator", "online marketplace service", "registrant"; Section 134.3; Section 168; Section 172; Section 172.1; Section 172.3; Section 172.4

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

Effective July 1, 2023, Bill 10, Budget Measures Implementation Act, 2023, removed references to subsection 134.3(2) from subsection 174(4.5). Subsection 134.3(2) no longer refers to when a service is taxable and is no longer relevant to the registration conditions under section 174.

Effective July 1, 2022, Bill 6, Budget Measures Implementation Act, 2022, amended section 174. Subsection 174(4.4) provides that a registrant required to be registered under section 172.3 [online marketplace facilitator must be registered] must notify the director if they cease to facilitate sales in an amount that exceeds the threshold set in subsection 172.3(2).

Subsection 174(4.5) provides that a registrant required to be registered under section 172.4 [person who provides online marketplace services must be registered] must notify the director if they cease to make sales in an amount that exceeds the threshold set in subsection 172.4(2).

Subsection 174(7) was amended to note that the registration of an online marketplace facilitator or a person who provides online marketplace services is not deemed to be canceled under subsections 174(4.4) or 174(4.5) if they are otherwise required under sections 172.3 and 172.4 to be registered.

Effective August 14, 2020, Bill 4, Budget Measures Implementation Act, 2020, added subsections 174(4.01) and 174(4.3) to reference sections 172(1.1) and 172.1(1.1). Persons required to register under the PST registration rules must inform the director of name or address changes or of circumstances that should cause their registrations to be cancelled.

Subsection 174(7) was amended to note that a registrant’s registration is not deemed to be cancelled under paragraph 174(4.01)(b) if they are otherwise required under section 172 to be registered.

Effective September 1, 2015, Bill 10, Budget Measures Implementation Act, 2015 added subsections 174(4.2) and 174(7).

Effective March 25, 2015, Bill 10, Budget Measures Implementation Act, 2015 added subsection 174(4.1).

Subsections 174(4.1) and (4.2) are intended to mirror subsection 174(4) and provide that a business that ceases to do the activities that required them to register under subsection 172(2.1) and subsection 172.1(1) must notify the director and their registration is deemed cancelled.

Subsection 174(7) ensures that despite the deemed cancellation provisions, a registration is not cancelled if a business is required to be registered under a different provision.

Effective March 25, 2015, Bill 10, Budget Measures Implementation Act, 2015 amended section 174 to correct a reference in subsection (4) from section 172 [person located in Canada but outside British Columbia must be registered] to subsection 172(1).

Effective December 1, 2012 and April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 174 that a registrant must notify the director in a form and manner specified by the director, if the registrant

• changes their name, address, business (DBA) name or the nature of their business,

• ceases to carry on business in British Columbia or no longer intends to carry on business in British Columbia, or,

• is located in Canada but outside British Columbia, ceases to do all of the activities described in paragraphs 172(1)(a) – 172(1)(d) [person located in Canada but outside British Columbia must be registered] in the ordinary course of business.

Section 174 also provides that the registrant’s registration is deemed to be cancelled in specified situations.

Note: subsections 174(1) – 174(3), 174(5) and 174(6) were brought into force on December 1, 2012 as part of the registration process that began on January 2, 2013 as part of the re-implementation of the PST on April 1, 2013. Subsection 174(4) was later brought into force on April 1, 2013.

Section 175 – Cancellation Of Registration If Small Seller

PST - SEC.175/Int.

References:

Act: Section 1 "director", "registrant", "small seller"; Section 168

Bulletin PST 001; Bulletin PST 003

Interpretation (Issued: 2013/12; Revised: 2020/10, 2023/08, 2024/05)

Effective April 25, 2024, Bill 3, Budget Measures Implementation Act, 2024 amended subsection 175(1) to clarify that the director specifies how the application form and any information required by the director can be provided to the ministry (e.g. by mail, online, etc.).

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, provides under section 175 consistent terminology for the purposes of clarifying that the general rules for giving documents apply by replacing “delivered” with “given”.

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 175 that a registrant who has been registered for at least one year may apply to the director to have their registration cancelled if they would meet the eligibility criteria for a small seller.

Section 176 – Registrant Who Is Independent Sales Contractor

PST - SEC.176/Int.

References:

Act: Section 1 "exclusive product", "independent sales contractor", "registrant"

Bulletin PST 001; Bulletin PST 004

Interpretation (Issued: 2013/12)

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 176 that if a person is a registrant and an independent sales contractor, the person is deemed not to be a registrant in relation to a sale of an exclusive product that is sold by the person as an independent sales contractor.

Section 177 – Prohibitions Relating to Use of Registration Number

PST - SEC.177/Int.

References:

Act: Section 1 "registration number", "software", "taxable service"; Section 168; Section 173; Section 230

Interpretation (Issued: 2013/12; Revised: 2021/12)

Effective April 21, 2021, Bill 4, Budget Measures Implementation Act 2021, amended section 177 by adding subsection 177(4) to provide an exception from the prohibition on using another person’s registration number for an agent when acting for a principal. This exception works in conjunction with section 8.1.

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 177 general prohibitions on the use of a registration number.

Division 2 — Collection and Remittance of Tax

Section 178 – Collector Is Agent

PST - SEC.178/Int.

References:

Act: Section 1 "accommodation", "collector", "eligible entity", "related service", "retail sale", "telecommunication service"; Section 123

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 178 that unless subsection 178(4) applies, a collector is an agent of the government (and of the municipality, regional district or eligible entity for the purposes of the municipal and regional district tax (MRDT) in a designated accommodation area) for the purposes of the Act and must collect tax as required under the Act.

Subsection 178(1) provides that subject to subsection 178(2), a collector is an agent of the government for the purposes of the Act.

Subsection 178(2) provides that a collector who provides accommodation is an agent of the municipality, regional district or eligible entity for the purposes of levying and collecting the tax imposed under section 123 [tax on accommodation in designated accommodation area].

Subsection 178(3) provides that as agent under subsection 178(1) or subsection 178(2), the collector must levy and collect tax as required under the Act.

Subsection 178(4) provides that the director may, in writing, exempt from the requirements of subsection 178(1) a collector who sells tangible personal property or provides a telecommunication service or related service at a retail sale in British Columbia on a passenger-carrying commercial vessel that makes scheduled sailings

(a) from a port in British Columbia to a port outside British Columbia, or

(b) from a port outside British Columbia to a port in British Columbia.

Section 179 – Collection And Remittance Of Tax By Collector

PST - SEC.179/Int.

References:

Act: Section 1 "boat", "collector", "direct seller", "lessor", "software", "taxable service", "vehicle"; Section 28; Section 29; Section 30; Section 31; Section 49; Section 52; Section 80.6; Section 93; Section 99; Section 100; Section 101; Section 180; Section 181; Section 182; Section 182.1; Section 198

PSTR: Section 15; Section 72; Section 73

Bulletin PST 002

Interpretation (Issued: 2013/12; Revised 2018/11)

Effective May 19, 2016, Bill 14, Finance Statutes Amendment Act, 2016 amended the Wording in subsection 179(1.1) from "to be delivered into British Columbia" to "to be delivered in British Columbia". This change requires a collector who causes TPP to be delivered into or within BC to collect and remit tax. The amendment was consequential to the amendments to subsection 171(2) and 172(1) to ensure consistency throughout the Act.

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 179 the general obligation for persons, except for a specified collector, to levy and collect tax imposed under the Act, and remit the tax to government as prescribed.

Section 179.1 – Designation Of Collector If Agent And Principal

PST - SEC.179.1/Int.

References:

Act: Section 1 "assessment", "collector", "collector’s return", "director", "online marketplace facilitator", "online marketplace seller", "registrant", "tangible personal property", "software", "taxable service"; Section 159; Section 168; Section 169; Section 171; Section 172; Section 172.1; Section 179; Section 179.2; Section 186; Section 198; Section 199; Section 199.1; Section 203; Section 205; Section 206; Section 206.1

PSTR: Section 73.01

Interpretation (Issued: 2023/08; Revised: 2024/05)

Effective April 25, 2024, Bill 3, Budget Measures Implementation Act, 2024 amended subsections 179.1(4) and (11) to replace “the manner specified by the director” with “a manner specified by the director,” for consistency with other sections of the Act.

Effective July 1, 2022, Bill 6, Budget Measures Implementation Act, 2022, amended subsection 179.1(3) to note section 179.1 does not apply to sales, provisions, or leases through an online marketplace. This amendment prevents an agent and a principal from jointly designating an online marketplace seller as responsible for an online marketplace facilitator’s obligations to levy, collect, remit and report tax.

Effective July 1, 2020, Bill 4, Budget Measures Implementation Act, 2020, amended subsection 179.1(15) to ensure that in circumstances where principals and agents are subject to PST registration requirements under the rules in subsections 172(1.1) and 172.1(1), they may designate a single party to satisfy PST obligations.

Effective April 11, 2019, Bill 5, Budget Measures Implementation Act, 2019, created section 179.1. Section 179.1 allows principals and agents who have dual and overlapping obligations (e.g. to register as a PST collector, to levy and collect PST, to remit PST, and to file a PST return) to designate a single party to satisfy those obligations. The non-designated party is relieved of those obligations but remains jointly and severally liable with the designated party.

Section 179.2 – Collection Of Tax If Sale By Auction

PST - SEC.179.2/Int.

References:

Act: Section 1 "collector", "online marketplace facilitator", "online marketplace seller", "sale", "small seller", "software", "tangible personal property", "taxable service"

Bulletin PST 001

Interpretation (Issued: 2021/05; Revised: 2023/08, 2024/05)

Effective April 25, 2024, Bill 3, Budget Measures Implementation Act, 2024 amended subsection 179.2(2) to replace “the manner specified by the director” with “a manner specified by the director,” for consistency with other sections of the Act.

Effective July 1, 2022, Bill 6, Budget Measures Implementation Act, 2022, added subsection 179.2(3), noting that subsection 179.2(2) does not apply if the collector is an online marketplace facilitator. Online marketplace facilitators and online marketplace sellers cannot jointly designate the online marketplace seller to collect and remit tax on sales made at auction through an online marketplace facilitator. The online marketplace facilitator is required to levy, collect, remit and report tax.

Effective April 11, 2019, Bill 5, Budget Measures Implementation Act, 2019 added section 179.2. Section 179.2 provides tax obligation rules in respect of sales made by auction when a collector is acting as an auctioneer and agent for another person (the principal) in relation to a sale by auction of tangible personal property, software or a taxable service.

Prior to Budget 2019 the Provincial Sales Tax Act did not contain rules that assigned the levying, collection, remittance and reporting obligations of tax to a single party where an agent/principal relationship existed.

Subsection 179.2(1) provides that an auctioneer (who is a collector) is required to levy, collect, remit, and report tax. For PST purposes, the sale is deemed to be the sale of the auctioneer. The principal who consigned tangible personal property, software, or a taxable service to the auctioneer to sell by auction as their agent is not required to levy, collect, remit, or report tax.

Subsection 179.2(2) allows the two parties to jointly elect to override the rule in s. 179.2(1). The sale then is deemed to be the sale of the principal (the other person), not the collector (auctioneer). The form specified by the director for this joint election is a letter.

If a joint election is made and the principal is a small seller under the Act, then the rule in s. 179.2(1) holds as if an election was never made. The letter should include the following information listed below:

Principal’s information:

• legal name of corporation, partnership members or individual
• business number, if applicable
• PST number, if registered

Agent’s information:

• legal name of corporation, partnership members or individual
• business number, if applicable
• PST number, if registered

If the agent is an individual who is not registered to collect PST and does not have a business number, the agent must provide a BC Driver’s Licence number (BCDL) or, if the agent doesn’t have a BCDL, a photocopy of a government-issued photo ID

Other required information:

• This letter must contain the following statement of acknowledgement “Despite section 179.2(1) of the PSTA, the principal (owner) will be responsible for charging, collecting, reporting and remitting PST on the goods, software, services or accommodation sold or leased by the agent on behalf of the principal during the period:
  • starting on [effective date] and until cancelled in writing by way of a separate letter signed by one or both parties and sent to the ministry, or
  • starting on [effective date] and ending on [end date].”
• Description of the nature of the goods, software, services or accommodation that are covered by this agreement.
• Full names, titles, telephone numbers, signatures of signing authorities for the principal and agent and dates signed.

The letter is to be submitted to the Ministry of Finance via regular mail, courier, email or fax to the following address:

By email: REVREGCL@Victoria1.gov.bc.ca

By fax: 250-356-2195

By mail:
Ministry of Finance
Consumer Taxation Programs Branch
PO Box 9435 Stn Prov Govt
Victoria BC  V8W 9V4

By courier:
Ministry of Finance
Consumer Taxation Programs Branch
Registration and Closure Section
1802 Douglas St
Victoria BC  V8T 4K6

Section 179.3 – Collection Of Tax If Sale Or Lease Is Facilitated By Online Marketplace Facilitator

PST - SEC.179.3/Int.

References:

Act: Section 1 "facilitate", "lease", "online marketplace facilitator", "online marketplace seller", "sale", "tangible personal property"; Part 3 – Division 5; Part 8; Section 172.3; Section 198; Section 199; Section 199.2; Section 203; Section 205; Section 206; Section 206.1

PSTR: Section 88

Bulletin PST 142

Interpretation (Issued: 2023/08)

Effective July 1, 2023, Bill 10, Budget Measures Implementation Act, 2023, amended tax obligations regarding the sale, provision or lease of tangible personal property facilitated by an online marketplace facilitator, removing the online marketplace facilitator’s obligation to collect PST on sales of tangible personal property located outside of Canada and sent to a person in British Columbia. Canada Border Services Agency will collect tax on all non-commercial imports from outside Canada as outlined in Part 3 – Division 5. The change includes both commercial and non-commercial goods because online marketplace facilitators generally do not have the ability to distinguish between these types of goods.

Effective July 1, 2022, Bill 6, Budget Measures Implementation Act, 2022, created section 179.3. Subsection 179.3(1) establishes that for facilitated transactions, the online marketplace facilitator, and not the online marketplace seller, is the collector in respect of sales, leases, and provisions made through their platform.

For the purposes of Part 8 of the Act, which governs registration requirements, the sale, provision or lease is deemed to be made by the online marketplace facilitator, other than for the purposes of sections 172.3 [online marketplace facilitator must be registered] and 179.3.

Subsection 179.3(2) provides that the online marketplace facilitator and the online marketplace seller are jointly and severally liable for any assessment, penalty, and interest in respect of the online marketplace seller’s sale, provision or lease.

Section 180 – Collection Of Tax By Independent Sales Contractor

PST - SEC.180/Int.

References:

Act: Section 1 "direct seller", "Excise Tax Act", "exclusive product", "independent sales contractor"; Section 28; Section 37; Section 99; Section 179; Section 184

PSTERR: Section 141; Section 145

Bulletin PST 004

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 180 the obligation for an independent sales contractor to levy and collect tax if they sell or provide an exclusive product to a purchaser. Section 180 also provides that an independent sales contractor may retain the tax collected on those sales if they have paid tax under section 99 or the provincial portion of the HST under the Excise Tax Act if they have not obtained and are not entitled to obtain a refund, credit or rebate under that Act.

Subsection 180(1) provides that an independent sales contractor who sells or provides an exclusive product to a purchaser must levy and collect the tax imposed under section 37 [tax on purchase] at the time the tax is payable in accordance with section 28 [when tax is payable in respect of a purchase or lease].

Subsection 180(2) provides that an independent sales contractor of a direct seller who sells or provides an exclusive product to another independent sales contractor of the direct seller in British Columbia must levy and collect the tax under subsection 99(2) [tax on acquisition of exclusive product by independent sales contractor] at the time the tax is payable in accordance with section 28.

Subsection 180(3) provides that despite subsection 179(3) [collection and remittance of tax by collector] and section 184 [tax collected deemed to be held in trust for government], if an independent sales contractor has paid tax imposed under section 99 in respect of an exclusive product, the independent sales contractor may retain the amount collected under subsection 180(1) or subsection 180(2).

Subsection 180(4) provides that despite subsection 179(3) and section 184, if an independent sales contractor has paid tax imposed under subsection 165(2), section 212.1 or section 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, in relation to an exclusive product and for which the independent sales contractor has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act, the independent sales contractor may retain the amount collected under subsection 180(1) or subsection 180(2).

Section 181 – Collection Of Tax Under Section 127

PST - SEC.181/Int.

References:

Act: Section 1 "legal services", "purchase price"; Section 127; Section 179; Section 246

Bulletin PST 106

Interpretation (Issued: 2013/12)

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 181 that if a person referred to in subsection 127(1) [tax if legal services provided to British Columbia resident] alleges that the person is exempt under subsection 127(3) from tax imposed under section 127 in relation to a portion of the purchase price, a collector's obligation under subsection 179(1) [collection and remittance of tax by collector] to levy and collect the tax is considered to be met,

(a) if the collector has reason to believe that an estimate made under subsection 127(4) in relation to the legal services is reasonable, by levying and collecting the amount of tax payable under section 127 in accordance with the estimate, or

(b) if the collector has reason to believe that an estimate made under subsection 127(4) in relation to the legal services is not reasonable, by

(i) making a reasonable estimate, subject to the regulations (currently, nothing is provided in the regulations), of that portion of the purchase price that relates to legal services referred to in paragraph 127(3)(b), and

(ii) levying and collecting the tax payable under section 127 in accordance with the reasonable estimate made under subparagraph 181(b)(i).

Section 182 – Collection Of Tax On Liquor Sold Under Liquor Permit

PST - SEC.182/Int.

References:

Act: Section 1 "liquor", "liquor permit"; Section 28; Section 37; Section 98; Section 179; Section 182.1; Section 183; Section 184

Bulletin PST 300

Interpretation (Issued: 2013/12; Revised 2017/09)

Effective January 23, 2017, Bill 27, Liquor Control and Licensing Act, 2015, brought into force by B.C. Reg. 241/2016, amended section 182 to replace the term "special occasion licence" with the term "liquor permit".

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 182 the obligation on the holder of a "liquor permit" to levy and collect tax on sales of liquor under the permit and allows the holder of the permit to retain the tax collected on those sales if they have paid or remitted all amounts payable as required. Note: prior to January 23, 2017, this provision applied to the holder of a "special occasion licence".

Section 182.1 – Transition – Remittance Of Tax On Liquor Sold Under Special Occasion Licence

PST - SEC.182.1/Int.

References:

Act: Section 1 "liquor", "reporting period"; Section 28; Section 37; Section 98; Section 179; Section 182.1; Section 183; Section 184

Bulletin PST 300

Interpretation (Issued: 2013/12; Revised: 2024/05)

Effective April 25, 2024, Bill 3, Budget Measures Implementation Act, 2024 amended subsection 182.1(4) to clarify that the director specifies how the return form can be filed with the ministry (e.g. by mail, online, etc.).

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 added section 182.1.

Section 182.1 imposes the obligation on the holder of a special occasion licence issued before April 1, 2013 to levy and collect tax on sales of liquor on or after April 1, 2013. The amount the holder of the licence must remit is reduced by the PST they paid or the provincial portion of the HST under the Excise Tax Act for which they have not obtained and are not entitled to obtain a refund, credit or rebate under that Act.

Collectors who file monthly returns may remit the tax collected on their PST return for the reporting period that includes the month in which the special occasion licence expires. Persons who are not collectors and collectors who do not file monthly returns must self-assess the tax due using a Casual Remittance Return (form FIN 405) on or before the last day of the month following the month in which the licence expires.

Section 182.2 - Collection of Tax on Liquor Sold By Auction

PST - SEC.182.2/Int

References:

Act: Section 179(3)

Bulletin PST 304

Interpretation (Issued: 2014/09)

Effective June 23, 2014, Bill 8 - Budget Measures Implementation Act, 2014 added section 182.2. The section was brought into force by B.C. Reg. 117/2014. The section provides a special collection rule for persons who are not collectors but who sell liquor at auction. In the fall of 2013, the Liquor Control and Licensing Branch introduced a new type of liquor permit for liquor sold at auction. In response, the Ministry of Finance introduced section 182.2 to ensure that PST was levied and collected on the sale of such liquor. In the absence of section 182.2, the liquor would still have been subject to PST, but collection would have been based on a self-assessment obligation.

Note: the section does not impact a collector's obligation to levy and collect tax on sales of liquor sold at auction. A collector always had (and continues to have) the obligation to levy and collect PST on any liquor sold by them (regardless of whether by auction or otherwise).

Although B.C. Reg. 117/2014 brought the section into force on June 23, 2014, B.C., Reg. 233/2013 added an identical rule (see section 9) to the Provincial Sales Tax Transitional Regulations. That amendment was effective November 22, 2013. B.C. Reg. 117/2014 repealed section 9 of the Provincial Sales Tax Transitional Regulations because the rule became a permanent part of the Provincial Sales Tax Act by Bill 8.

Section 183 – Duties Of Small Seller

PST - SEC.183/Int.

References:

Act: Section 1 "small seller"; Section 182

PSTR: Section 89

Bulletin PST 003

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 183 that a small seller must not levy or collect tax under the Act and must keep records as required by the regulations.

Subsection 183(1) provides that subject to subsection 182(1) [collection of tax under liquor sold under special occasion licence], a small seller must not levy or collect tax under the Act.

Subsection 183(2) provides that a small seller must keep records as required by the regulations (as provided by PSTR section 89 [small seller records]).

Section 184 – Tax Collected Deemed To Be Held In Trust For Government

PST - SEC.184/Int.

References:

Act: Section 180; Section 182

Interpretation (Issued: 2013/12)

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 184 that if a person collects an amount of tax imposed under the Act or collects an amount as if it were tax imposed under the Act,

(a) the person is deemed to hold the amount in trust for the government until the amount is remitted to the government at the time and in the manner required under the Act, and

(b) the amount collected is deemed to be held separate from and does not form a part of the person's money, assets or estate, whether or not the amount collected has in fact been kept separate and apart from either the person's own money or the assets of the estate of the person who collected the amount.

Section 185 – Allowance for Collection of Tax

PST - SEC.185/Int.-R.2

References:

Act: Section 1 "registrant", "reporting period"; Section 123; Section 246

PSTR: Section 74

Bulletin PST 002

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 185 that a registrant who remits tax to the government as required under the Act (i.e., on time and in the correct manner) may retain a prescribed allowance (i.e., a commission) for the reporting period. Section 185 also provides that commission does not apply in relation to a remittance of municipal and regional district tax (MRDT).

Subsection 185(1) provides that subject to subsection 185(1.1) and the regulations (as provided by PSTR subsection 74(2) [allowance for registrants]; see PSTR/Sec. 74/Int.), a registrant who remits tax to the government as required under the Act in relation to a reporting period may deduct from the remittance and retain a prescribed allowance for the reporting period (as provided by PSTR subsection 74(1)).

Subsection 185(1.1) provides that subsection 185(1) does not apply in relation to a remittance of tax imposed under section 123 [tax on accommodation in designated accommodation area].

Subsection 185(2) provides that despite any other Act, a person retaining an allowance under section 185 is not, by retaining the allowance, made ineligible as a member of the Legislative Assembly of British Columbia.

R.1 Change in Tax Status of Transaction After Commission Claimed (Issued: 2014/04)

A registrant sells TPP to its customer on credit, correctly charges tax and remits it on their next PST return, and claims the commission allowed on the tax remitted. The customer subsequently pays the account, but deducts the amount of tax and provides its registration number to the registrant. The registrant then applies to the ministry for a refund of the tax remitted.

As the registrant charged and remitted the tax as required under the Act, the registrant is entitled to the commission claimed on the PST return. The commission is not deducted from the amount refunded to the registrant. The fact that the customer's actions subsequently changed the taxability of the transaction does not alter the registrant's eligibility for the commission at the time the tax was charged and remitted with the PST return.

With respect to the refund, the claim should be treated as a type 2 claim for the purpose of calculating the interest payable. See PSTA/Sec. 165/R.1.

R.2 Commission Base (Issued: 2024/09)

The Provincial Sales Tax Act (PSTA) and the Provincial Sales Tax Regulation (PSTR) use the word “remit” very precisely to mean sending government an amount of tax that a person levied or collected. When the PSTA uses the word “remit,” the legislation is not contemplating tax a person must “pay” to government (e.g. self-assessed amounts).

The distinction between “remit” and “pay” shows up in multiple places in the legislation. Where the legislation refers to an obligation to send government money a person levied (but was not required to self-assess themselves), the PSTA and PSTR refers to “remit.”

For example, subsection 179(2) of the PSTA requires a collector “remit” to government tax they levy. Subsection 179(3) has the same approach and uses the word “remit” in the context of tax a person has collected. Conversely, subsection 49(5) and subsection 81(1) (change in use) require a person “pay” tax to government (these are two of the most common self-assessment provisions).

A similar distinction shows up in the assessment provisions. Subsection 199(1) covers an assessment for failure to “pay” tax while section subsection 199(2) covers failure to “remit” tax. If a collector failed to send government tax that was triggered on a change in use, the Ministry assesses them for failure to “pay” under subsection 199(1) and not failure to “remit.” Section 82 of the PSTR similarly contemplates the distinction between “remit” and “pay.” That section uses the phrases “payment of tax” and “remittance of tax” as two distinct methods of sending government amounts.

Given this context and how the word “remit” is used throughout the PSTA and PSTR, the word “remit” in the allowance provision in subsection 185(1) of the PSTA and the word “remitted” in subsection 74(1) of the PSTR means the amount of tax levied and sent to government does not include amounts self-assessed. The self-assessed amounts are “paid” to government, not “remitted” to government.

Therefore, the allowance under subsection 185(1) is for the amount of tax a collector remits during a reporting period. If the collector remits all the tax they levied, then the conditions for PSTA section 185 are met and they can claim the allowance even if they do not pay to the government the amount they are required to self-assess – though they could be assessed under PSTA section 199(1) for failure to self-assess.

Section 186 – Collector's Returns

PST - SEC.186/Int.

References:

Act: Section 1 "collector", "collector’s return", "director"; Section 182.2

PSTR: Section 77; Section 78

Bulletin PST 002

Interpretation (Issued: 2013/12; Revised: 2016/01, 2024/05)

Effective April 25, 2024, Bill 3, Budget Measures Implementation Act, 2024 amended subsection 186(2) to clarify that the director specifies how any information the director requires with the return can be submitted to the ministry (e.g. by mail, online, etc.).

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 amends section 186(1)(c) by excluding collectors from the operation of the section. The amendment prevents a duplication of duties imposed on collectors.

Effective June 23, 2014, Bill 8 - Budget Measures Implementation Act, 2014 amended section 186 by amending subsection (1) for the purposes of liquor sold at auction by a person who is not a collector. The amendment was consequential to the addition of section 182.2; see PST/Sec. 182.2/Int.

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 186 the obligation for a collector to file a tax return. Section 186 also requires other persons who collect tax, or an amount as if it were tax imposed under the Act, to file a tax return.

Section 187 – Certificate Required For Bulk Transaction

PST - SEC.187/Int.-R.1

References:

Act: Section 1 "collector", "director", "software", "substantially", "tax"; Section 199; Section 246

Small Business Guide to PST

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

Effective June 9, 2015, Bill 13, Finance Statutes Amendment Act, 2015 made several amendments to section 187.

Section 187(1) was repealed and replaced. The new subsection adds a definition for "collector's business" in addition to the definition for "bulk transactions."

The amendment clarifies that the liability of the purchaser is limited to the amount owing by the seller in respect of the seller's line of business in respect of which the sale in bulk took place.

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 187 the requirement for a purchaser of TPP, software or an interest in a business through a bulk transaction (commonly referred to as the sale of substantially all of a business’ assets) to either obtain from the seller a copy of the Application for Clearance form issued by the Ministry to the collector, or pay the specified amount of tax owing under the Act, at the time of purchase, by the collector.

If all amounts owing under the Act have been paid by a collector who is selling a business, the ministry may send, on request by the collector, two copies of the clearance certificate confirming that the collector has paid all amounts owing.

R.1 Share Purchase (Issued: 2016/06)

The definition of "bulk transaction" in this section includes the disposition of an interest in a collector's business carried on in British Columbia. An 'interest in a collector's business' does not include shares in a corporation. In other words, a corporate tax liability under the Act does not transfer to a purchaser of shares. It remains with the corporation.

Accordingly, a collector may include a sole proprietor, partnership, or a corporation; however, a collector does not include a shareholder in a corporation.

Therefore, if a person is purchasing shares in a corporation from a shareholder (i.e. share purchase), any tax liability on corporate assets is not transferred to the purchaser and the person is not required to obtain a duplicate copy of the clearance certificate obtained under subsection 187(3) to avoid liability. This is consistent with wording on clearance letters which state that tax liabilities identified through audits remain with the searched entity.

Nevertheless, a purchaser of shares who also becomes a director of that corporation may later be liable for unpaid tax under the Act by the corporation. This is the case if the director's liability provisions in the Act are later used in respect of a pre-existing tax liability under the Act. A prospective shareholder in a corporation may still seek to obtain a duplicate copy of a clearance certificate if they also plan to become a director of that corporation.

Section 188 – Prohibited Advertsing Or Other Representations

PST - SEC.188/Int.

References:

Act: Section 1 "collector", "independent sales contractor", "lessee", "purchaser"

Interpretation (Issued: 2013/12)

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 188 that a collector or an independent sales contractor must not, directly or indirectly, advertise or hold out or state to the public or to any purchaser or lessee that the tax or any part of it that must be levied and collected under the Act by the collector or independent sales contractor

(a) will be assumed or absorbed by the collector or independent sales contractor,

(b) will not be considered as part of the amount payable by the purchaser or lessee, or

(c) will be refunded.

Section 189 – Liability Satisfied If Tax Collected

PST - SEC.189/Int.

References:

Act: Section 1 "collector", "collection agent", "independent sales contractor", "liquor permit"; Section 70

Interpretation (Issued: 2013/12; Revised: 2017/09)

Effective January 23, 2017, Bill 27, Liquor Control and Licensing Act, 2015, brought into force by B.C. Reg. 241/2016, amended section 189 to replace the term "special occasion licence" with the term "liquor permit".

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 189 that if a collector is required to levy and collect tax imposed under the Act, or if a specified person collects tax imposed under the Act, the liability of a person who is required to pay the tax is satisfied.

Section 190 – Payment First Applied Against Tax Payable

PST - SEC.190/Int.

References:

Act: Section 1 "collector", "independent sales contractor", "liquor permit", "software", "taxable service"

Interpretation (Issued: 2013/12; Revised: 2017/09)

Effective January 23, 2017, Bill 27, Liquor Control and Licensing Act, 2015, brought into force by B.C. Reg. 241/2016, amended section 190 to replace the term "special occasion licence" with the term "liquor permit".

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 190 the general rule that any amount paid to a collector in respect of a purchase or lease is deemed to be first applied against the tax payable.

Section 191 – Agreement With Federal Government

PST - SEC.191/Int.

References:

Act: Section 1 "collection agent", "resident taxpayer"; Section 54; Section 57; Part 3 – Division 5

Interpretation (Issued: 2013/12)

Effective February 28, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 amended subsection 191(1) by adding "or an agent of a government of Canada" after "government of Canada", and subsections 191(3), 191(4) and 191(6) by adding "or the agent of a government of Canada" after "government of Canada".

Effective May 31, 2012, Bill 54, Provincial Sales Tax Act, 2012 provides under section 191 the authority for the government to enter into an agreement with the Government of Canada (and, effective February 28, 2013, with an agent of the government of Canada) respecting the administration and enforcement of the Act, including collection of PST on tangible personal property brought, sent or delivered into BC from outside Canada by or to a resident taxpayer.

Subsection 191(1) provides that the minister may, on behalf of the government, enter into an agreement with the government of Canada or an agent of the government of Canada respecting the administration and enforcement of the Act in respect of tangible personal property that is

(a) brought or sent into British Columbia from outside Canada by a resident taxpayer, or

(b) delivered in British Columbia from outside Canada to a resident taxpayer.

Subsection 191(2) provides that an agreement entered into under subsection 191(1) must specify the circumstances under which the collection agent may require that a resident taxpayer claiming an exemption from tax must nevertheless pay the tax to the collection agent.

Subsection 191(3) provides that an agreement entered into under subsection 191(1) may authorize payment to the government of Canada or the agent of the government of Canada in respect of services provided under the agreement.

Subsection 191(4) provides that payments in respect of the ongoing costs of services provided under the agreement entered into under subsection 191(1) may be retained by the government of Canada or the agent of the government of Canada out of the amounts collected on behalf of the government of British Columbia.

Subsection 191(5) provides that the minister may pay from the consolidated revenue fund any amount payable by the government under the agreement entered into under subsection 191(1).

Subsection 191(6) provides that the government of Canada or the agent of the government of Canada may, as agent of the government of British Columbia, act in accordance with the agreement entered into under subsection 191(1) to

(a) collect tax owing in respect of tangible personal property that is released by a collection agent without payment of all or part of the tax imposed under Division 5 [Property Brought into British Columbia from Outside Canada] of Part 3 [Taxes in Relation to Tangible Personal Property], and

(b) refund an amount charged or collected by a collection agent that is in excess of the amount of tax payable in respect of the tangible personal property.

Division 3 — Taxpayer Returns

Section 192 – When A Person Must File A Taxpayer Return

PST - SEC.192/Int.

References:

Act: Section 1 "director", "registrant", "taxpayer return"; Section 37; Section 41; Section 51; Section 51.1; Section 60; Section 61; Section 61.1; Section 62; Section 63; Section 64; Section 66; Section 69; Section 70; Section 71; Section 80.2; Section 80.3; Section 80.4; Section 80.5; Section 80.7; Section 80.8; Section 81; Section 82; Section 82.01; Section 82.1; Section 82.2; Section 82.3; Section 83; Section 84; Section 84.1; Section 85; Section 86; Section 87; Section 102; Section 106; Section 107; Section 108; Section 109; Section 109.1; Section 110; Section 111; Section 117.1; Section 120; Section 120.1; Section 123.2; Section 123.3; Section 130.1; Section 130.2; Section 130.3; Section 132.1; Section 133; Section 134.5; Section 187; Section 222

PSTR: Section 79; Section 91

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

Effective July 1, 2022, Bill 6, Budget Measures Implementation Act, 2022 amended section 192(1) by adding a reference to section 134.5. In result, the amendment requires a person file a return if they trigger the change in use provision for online marketplace services in section 134.5.

Effective March 25, 2015, Bill 13, Finance Statutes Amendment Act, 2015 amended section 192(1) by adding references to section 187 and section 222.

Effective April 1, 2013, Bill 8 - Budget Measures Implementation Act, 2014 amended subsection 192(1). The amendment adds a reference to section 37 in relation to tax imposed under section 37 in accordance with section 88. The amendment also adds a consequential reference to section 82.01 which was added by Bill 8.

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 when a person who is not a registrant must file a taxpayer return with the director for tax imposed under specified provisions. The taxpayer return must be filed by using a Casual Remittance Return (form FIN 405), except when a person must pay tax under section 51 [tax if tangible personal property brought into British Columbia for temporary use]. In such cases, the return must be filed by using a Temporary Use Remittance Return (form FIN 402).

Section 193 – Taxpayer Return

PST - SEC.193/Int.

References:

Act: Section 1 "director", "taxpayer return"

PSTR: Section 80; Section 81

Interpretation (Issued: 2013/12; Revised 2024/05)

Effective April 25, 2024, Bill 3, Budget Measures Implementation Act, 2024 amended subsection 193(3) to clarify that the director specifies how any information the director requires with a taxpayer return can be submitted to the ministry (e.g. by mail, online, etc.).

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 193 the required form, date and manner in which to file a taxpayer return.