Provincial Sales Tax Exemption & Refund Regulation, Part 2 - Exemptions in Relation to Tangible Personal Property

Last updated on November 21, 2024

Division 1 — Health And Medical Products And Equipment For Individuals With Disabilities

Section 3 – Drugs And Health Products

PSTERR - SEC.3/Int.-R.1

References:

Act: Section 1 "promotional distribution", "substantially", "use"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "obtain", "practitioner", "prescription"; Section 57

PSTR: Section 24

Bulletin PST 207

Interpretation (Issued: 2014/02; Revised: 2023/10, 2024/08)

Effective June 28, 2024, B.C. Reg. 132/2024 amends PSTERR paragraph 3(1)(i) to remove references to the College of Opticians of British Columbia, and instead refer to persons authorized under the Health Professions Act to practise the designated health profession of opticianry. The amendments are required as the name of the college responsible for opticianry has changed.

Effective October 26, 2018, B.C. Reg. 227/2018 amends PSTERR paragraph 3(1)(b)(ii) to update a reference to the Veterinary Drugs Act. The definition of a veterinary drug is now found in section 1 of the Veterinary Drugs Act.

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 3 exemptions from tax for specified drugs, vaccines and other substances, and health products.

Subsection 3(1) provides that the following are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act:

(a) drugs specified in Schedule I or IA of the Drug Schedules Regulation, B.C. Reg. 9/98;

(b) a vaccine that is

(i) specified in Schedule II of the Drug Schedules Regulation, B.C. Reg. 9/98, or

(ii) a veterinary drug, as defined in section 65 of the Veterinary Drugs Act;

(c) drugs and other substances for the treatment, mitigation or prevention of a disease or disorder, if the drugs and other substances are

(i) sold on the prescription of a practitioner, or

(ii) provided as part of a promotional distribution by a pharmaceutical company to a practitioner;

(d) tangible personal property that is the result of a medical imaging procedure;

(e) drugs and other substances that alleviate pain and are in a form designed to be taken internally, whether orally or otherwise, or applied externally;

(f) artificial limbs and orthopaedic appliances;

(g) hearing aids;

(h) dentures, including adhesives, liners and repair kits for dentures;

(i) dental and optical appliances, if

(i) the appliances are sold on the prescription of a practitioner or a person registered as a member of the College of Opticians of British Columbia, or

(ii) the appliances are provided as part of a promotional distribution to a practitioner or a person registered as a member of the College of Opticians of British Columbia and are otherwise available to patients only by prescription;

(j) clip-on sunglasses, if the sunglasses are

(i) obtained together with eyeglasses that are exempt under PSTERR paragraph 3(1)(i), and

(ii) specifically designed to be attached to the eyeglasses;

(k) sanitary napkins, tampons, sanitary belts, menstrual cups or other similar products, advertised or marketed substantially for feminine hygiene purposes.

Subsection 3(2) provides that the following are exempt from tax imposed under Part 3 of the Act, other than Division 9 [Change in Use]:

(a) vitamins and dietary supplements or adjuncts, in a form designed to be ingested orally, if the vitamins, supplements or adjuncts are obtained for human consumption;

(b) nicotine gum, nicotine patches and similar items, advertised or marketed as products that assist an individual to stop smoking tobacco, if the gum, patches or other similar items are obtained by or on behalf of an individual for the individual's own use.

R.1 Applicability Of Exemptions To Animals (Issued: 2014/04)

The exemptions under PSTERR subsection 3(1) also apply where the item(s) is to be used for animals. The exemptions under PSTERR subsection 3(2) do not apply where the item(s) is to be used by animals.

PSTERR - SEC.3(1)(C)/R.1-R.3

(1)(c) Drugs Sold on Prescription or Provided as Promotional Distribution

R.1 Insulin (Issued: 2014/04)

Insulin is exempt from tax under PSTERR paragraph 3(1)(c) when sold on the prescription of a practitioner.

However, although insulin is listed in Schedule II of the Drug Schedules Regulation under the Pharmacy Operations and Drug Scheduling Act, it is not a vaccine, and does not qualify for the exemption under PSTERR subparagraph 3(1)(b)(i). Therefore, insulin is taxable when purchased by doctors, hospitals or health authorities for the purpose of treating patients.

R.2 Persons Eligible For Exemption - Sale On Prescription (Issued: 2014/04)

PSTERR subparagraph 3(1)(c)(i) exempts drugs and other substances for the treatment, mitigation or prevention of a disease or disorder, if they are sold on the prescription of a practitioner.

The person eligible for this exemption is the person who purchases the drugs or other substances after the prescription is issued. The purchaser of the drugs or other substances does not have to be the person to whom the prescription was issued (e.g., a diabetic's spouse may receive the exemption when they purchase prescription insulin from a pharmacy).

The exemption does not apply to the sale of drugs or other substances to a hospital or practitioner for use by the hospital or practitioner in the provision of medical services (e.g., insulin purchased by a hospital or practitioner to be administered in the provision of medical services is subject to PST, even if the patient has been prescribed insulin). This is because the sale of drugs or other substances from the supplier to a hospital or practitioner is not a sale on the prescription of a practitioner. Drugs or other substances that are administered to a patient are not sold to that patient; rather, they are utilized by a practitioner in the course of providing a service. (See PSTA subparagraph 1/"use"(a)(vii).)

R.3 Oral Contraceptives (Issued: 2017/05)

The ordinary meaning of "disorder" includes unwanted conditions, including unwanted pregnancy.

Therefore, the exemption for drugs and other substances for the treatment, mitigation or prevention of a disease or disorder includes oral contraceptives when sold on the prescription of a practitioner.

Additionally, pharmacists are included in the definition of practitioner when prescribing ethinyl estradiol, norgestrel or progestin for emergency contraception.

PSTERR - SEC.3(1)(D)/R.1

(1)(d) TPP that is the Result of a Medical Imaging Procedure

R.1 X-Rays And Ultrasound Photos (Issued: 2014/04)

The exemption under PSTERR paragraph 3(1)(d) for TPP that is the result of a medical imaging procedure includes x-rays and ultrasound photos.

PSTERR - SEC.3(1)(F)/R.1

(1)(f) Artificial Limbs or Orthopaedic Appliances

R.1 Orthopaedic Shoes (Issued: 2014/04)

In order to qualify for the exemption under PSTERR paragraph 3(1)(f), an orthopaedic shoe must be a specially constructed shoe and, in almost all cases, would involve a practitioner's prescription. The fact that there are some shoes sold to the general public that may have a special insole or some other special feature does not make them orthopaedic appliances, and such shoes are, therefore, taxable in the regular manner.

Foam metatarsal pads or bars that are generic in nature are not considered orthopaedic appliances and are therefore subject to tax when sold separately. However, where they are fitted into and become part of an exempt custom-made orthopaedic shoe, they qualify for exemption under PSTERR paragraph 3(1)(f).

Heel lifts only qualify for the exemption if they are part of a specially constructed orthopaedic shoe. Heel lifts do not qualify for exemption when they are sold on their own.

PSTERR - SEC.3(1)(I)/R.1-R.2

(1)(i) Dental and Optical Appliances

R.1 Dental Bonding Compounds (Issued: 2014/04)

Dental bonding compounds, such as Aelitebond and All-Bond 2 Universal Adhesive System, which fasten or bond dental devices, composite or amalgam to the existing tooth structure do not become part of the denture or dental appliance and are, therefore, not exempt as dental appliances.

R.2 Frames Sold Separately From Prescription Lenses (Issued: 2014/04)

Eyeglasses are composed of prescription lenses and frames. Typically, frames and lenses are purchased together because the lenses are custom-fitted to the frames, and the lenses cannot be used without the frames. Therefore, where the two are sold under the same prescription, both items are exempt as one optical appliance under PSTERR paragraph 3(1)(i). Where frames are purchased separately and there is no prescription, tax is due on the frames, unless the frames qualify for the exemption under PSTERR subsection 57(1) [parts] for parts that are designed and obtained for use to repair or recondition TPP that is exempt from tax.

PSTERR - SEC.3(2)(A)/R.1-R.2

(2)(a) Vitamins and Dietary Supplements

R.1 Dietary Supplements (Issued: 2014/04)

Dietary supplements are not defined by Health Canada. Instead they generally fall under a broader group of products defined as Natural Health Products.

However, a comprehensive definition of "dietary supplement" is provided by the United States Food and Drug Administration (FDA) in the Dietary Supplement Health and Education Act (DSHEA).

For the purposes of PSTERR paragraph 3(2)(a), a dietary supplement relies on the definition from the DSHEA which is a product taken orally that is intended to supplement the diet and contains one or more of the following "dietary ingredients":

vitamins,
minerals,
herbs or other botanicals,
amino acids,
a dietary substance for use by man to supplement the diet by increasing the total dietary intake (e.g., enzymes or tissues from organs or glands), or
a concentrate, metabolite, constituent or extract.

Dietary supplements may be found in many forms such as tablets, capsules, softgels, gelcaps, liquids, or powders. They can also be in other forms, such as a bar, but if they are, information on their label must not represent the product as a conventional food or a sole item of a meal or diet.

R.2 Essential Oils (Issued: 2014/04)

The exemption under PSTERR paragraph 3(2)(a) for "vitamins and dietary supplements or adjuncts…" does not apply to essential oils.

Section 4 – Household Medical Aids

PSTERR - SEC.4/Int.-R.1

References:

Act: Section 1 "use"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "obtain"

PSTR: Section 24

Bulletin PST 206; Bulletin PST 207

Interpretation (Issued: 2014/02; Revised: 2021/10)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 4 exemptions from tax for specified household medical aids.

Three conditions must be met in order for tangible personal property to be exempt under PSTERR subsection 4(1). Additionally, certain exclusions apply under subsection 4(2).

First, the tangible personal property must be a drug or a medicine. The words “drugs” and “medicines” should be given their plain meaning. Generally, a drug is a substance for use in the treatment, mitigation, or prevention of a disease or disorder; a medicine is a substance or preparation used in the treatment of an illness or disease. These words apply to a broad range of substances. Note that because of this breadth, subsection 4(2) is used to exclude a number of substances that might otherwise be automatically included if the words were to be given a more specific or technical meaning.

Second, paragraph 4(1)(a) requires the drug or medicine to be advertised or marketed as a product for the treatment, mitigation or prevention of a disease or disorder in humans.

Third, paragraph 4(1)(b) requires the drug or medicine to be commonly known as a household medical aid. In evaluating this requirement, the ministry considers whether the class of product to which a drug or medicine belongs is commonly used in households for a purpose described in paragraph 4(1)(a).

Subsection 4(2) provides that the exemption under PSTERR subsection 4(1) does not apply to the following:

(a) sunscreen;

(b) oral hygiene products, including toothpaste and mouthwash;

(d) soaps and moisturizers, unless the soap or moisturizer is medicated and is advertised or marketed as a product for the treatment, mitigation or prevention of a particular skin condition;

(e) hair products, unless the hair product is advertised or marketed as a product for the treatment of head lice;

(f) beauty products and cosmetics.

A separate exemption for bunion, callus and corn pads, and for first aid materials, is found at subsection 4(3). The requirements of subsection 4(1) and the exclusions in subsection 4(2) do not apply in relation to this exemption.

R.1 Hand Sanitizer (Issued: 2020/07)

Hand sanitizer is a product used to kill many forms of viruses and bacteria on human hands. It may be alcohol-based (sometimes with no active ingredients other than alcohols) or non-alcohol based. While products with similar purposes are excluded from the exemption by paragraph 4(2)(d), hand sanitizers are not excluded. A “soap” is for cleansing, not necessarily for killing bacteria and / or preventing transmission of diseases and is a mixture of fats and alkaline bases. Hand sanitizers are formulated differently and serve a different purpose.

The result is that hand sanitizers qualify for the exemption under subsection 4(1). They are drugs, they are advertised and marketed as a product for the prevention of disease in humans and – as a class of product – hand sanitizers are commonly used in households for the prevention of disease.

Section 4.1 – Exception - Cannabis

PSTERR - SEC.4.1/Int.

References:

PSTERR: Section 3; Section 4

Bulletin PST 141

Interpretation (Issued: 2021/07)

Effective October 17, 2018, B.C. Reg. 212/2018 adds PSTERR section 4.1, which provides that cannabis, as defined in the Cannabis Control and Licensing Act, is excluded from the exemptions provided under PSTERR section 3 [drugs and health products] and PSTERR section 4 [household medical aids], other than PSTERR section 3(1)(a). As a result, drugs, health products and household medical aids that are otherwise exempt from PST (such as section 3(1)(e) substances that alleviate pain) are not exempt from PST if they contain cannabis. This exclusion does not apply to drugs specified in Schedule I or IA of the Drug Schedules Regulation, B.C. Reg. 9/98, made under the Pharmacy Operations and Drug Scheduling Act.

Section 5 – Diabetic And Ostomy Supplies

PSTERR - SEC.5/Int.-R.2

References:

Act: Section 1 "use"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "obtain"

PSTR: Section 24

Bulletin PST 207

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 5 exemptions from tax for specified diabetic and ostomy supplies.

PSTERR section 5 provides that the following are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use]:

(a) syringes, needles, autolets, glucose monitoring units and diabetic testing materials obtained by a diabetic, or an individual on behalf of a diabetic, for the diabetic's own use;

(b) material, equipment and supplies

(i) designed for use by individuals who, as a result of surgery, are in the permanent condition of being able to dispose of their bodily wastes only through a surgically constructed bodily orifice, and

(ii) obtained by an individual with such a condition, or another individual on behalf of the individual, for that individual's own use,

but not including skin creams, deodorants, cleaning materials or any other products that by their general nature are generally used for other purposes or by other individuals.

R.1 Diabetic Supplies Purchased By Or On Behalf Of Hospitals, Doctors, Etc. (Issued: 2014/04)

Purchases of prescribed supplies by or on behalf of diabetics for their own use are exempt from PST. Purchases by hospitals or doctors (for hospital /office use) are subject to PST.

"Own use" in the context of PSTERR paragraph 5(a) means use with respect to one's own medical condition and not use for a patient. Hospitals and doctors do not purchase these items for their "own use"; rather, they purchase the supplies for the use of others.

R.2 Ostomy Supplies Purchased By Or On Behalf Of Hospitals, Doctors, Etc. (Issued: 2014/04)

The exemption for purchases of material, equipment and supplies under PSTERR paragraph 5(b) is limited to purchases:

by an individual with the condition described in PSTERR subparagraph 5(b)(i) for their own use, or
by another individual for the individual with the condition described in PSTERR subparagraph 5(b)(i) for their own use.

"Own use" in the context of PSTERR paragraph 5(b) means use with respect to one's own medical condition and not use for a patient. Hospitals and doctors do not purchase these items for their "own use"; rather, they purchase the supplies for the use of others.

Section 6 – Human Parts And Reproductive Products

PSTERR - SEC.6/Int.

References:

Act: Part 3

PSTR: Section 24

Bulletin PST 207

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 6 exemptions from tax for specified human parts and reproductive products.

PSTERR section 6 provides that that the following are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act:

(a) human organs;

(b) human tissue;

(d) human ova;

(e) human blood;

(f) human blood constituents.

Section 7 – Devices For Use In Transportation Of Individuals With Disabilities

PSTERR - SEC.7/Int.

References:

Act: Section 1 "motor vehicle", "multijurisdictional vehicle", "use", "vehicle"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "obtain"

PSTR: Section 24

Bulletin PST 207

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 7 exemptions from tax for specified devices for use in the transportation of individuals with disabilities.

Subsection 7(1) provides that the following are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use], if obtained for use in the transportation of individuals with disabilities:

(a) wheelchairs and carriages, whether or not power-operated, and parts and accessories designed for them;

(b) special controls to enable individuals with disabilities to operate electronic wheelchairs and carriages;

(d) specially designed household elevators, including wheelchair elevators, for individuals with disabilities, and materials obtained for use to build specially designed household elevators for individuals with disabilities, if the elevators become real property upon installation;

(e) power-operated and manually operated lifts designed to facilitate entry to otherwise inaccessible buildings, structures or vehicles, including automatic tailgates or side lifts for motor vehicles;

(f) specially designed ramps to move a wheelchair and the occupant into a motor vehicle or building;

(g) auxiliary driving controls that facilitate the operation of motor vehicles by individuals with disabilities;

(h) car-top lifts for lifting and storing wheelchairs on top of motor vehicles.

Subsection 7(2) provides that parts and materials are exempt from tax imposed under Part 3 of the Act, other than Division 9, if the parts or materials

(a) are obtained solely for the purpose of

(i) modifying a motor vehicle, other than a multijurisdictional vehicle, to facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equipping a motor vehicle, other than a multijurisdictional vehicle, with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability, and

(b) are subsequently attached to, or become part of, the motor vehicle.

PSTERR - SEC.7(D)/R.1

(1)(d) Specially Designed Household Elevators, and Materials

R.1 Materials Used To Build A Specially Designed Household Elevator (Issued: 2014/07)

Under PSTERR paragraph 7(1)(d), specially designed household elevators, including wheelchair elevators, for individuals with disabilities, and materials obtained for use to build specially designed household elevators for individuals with disabilities are exempt from PST, if the elevators become real property upon installation. This provision does not extend to materials used to modify the building housing the elevator (e.g., materials to change the slope of a roof or materials to construct a lift shaft).

Section 8 – Medical Supplies And Equipment For Individuals With Disabilities

PSTERR - SEC.8/Int.

References:

Act: Section 1 "use"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "obtain", "practitioner", "prescription"

PSTR: Section 24

Bulletin PST 207

Interpretation (Issued: 2014/02; Revised: 2016/01)

Effective February 18, 2015, B.C. Reg. 125/2015 amended PSTERR section 8 by adding a new item (paragraph 8(1)(l)) to the list of items exempt from tax imposed under Part 3 of the Act:

Lift chairs designed to facilitate standing to sitting or sitting to standing, or both.

Lift chairs do not need to be purchased from a medical supply store to qualify for exemption.

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 8 exemptions from tax for tangible personal property designed to be implanted in, or attached to, an individual’s body, and specified supplies and equipment for individuals with disabilities.

Subsection 8(1) provides that the following are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act:

(a) equipment designed solely for use by an individual with a permanent disability;

(b) tangible personal property designed to be implanted in an individual's body;

(c) tangible personal property designed to be attached to an individual's body for the purpose of maintaining the individual's bodily functions;

(d) hospital-style beds, if the beds are sold on the prescription of a practitioner;

(e) injection locators;

(f) commodes and hip belts for use with a commode;

(g) crutches;

(h) cannulae;

(i) syringe injectors;

(j) transfer boards and transfer chairs;

(k) hernia trusses.

Subsection 8(2) provides that equipment advertised or marketed for use solely by individuals with disabilities is exempt from tax imposed under Part 3 of the Act, other than Division 9 [Change in Use], if the equipment is obtained by or on behalf of an individual with a disability for the individual's own use.

PSTERR - SEC.8(1)(A)/R.1

(1)(a) Equipment Designed Solely for Use by Individual with Permanent Disability

R.1 Diabetic Socks (Issued: 2014/04)

The exemption under PSTERR paragraph 8(1)(a) for equipment designed solely for use by an individual with a permanent disability does not include diabetic socks, as diabetic socks are not designed solely for use by an individual with a permanent disability.

PSTERR - SEC.8(1)(B)/R.1-R.2

(1)(b) TPP Designed to be Implanted in Humans

R.1 "Implanted" (Issued: 2014/04; Revised 2016/10)

The exemption available under PSTERR paragraph 8(1)(b) applies to TPP that is designed to be inserted or fixed in a person's body, especially by surgery. It can apply to TPP that is not designed to be entirely implanted-for example, dental implants that are not placed entirely below tissue, such as a substitute tooth root that is screwed into and becomes fused with the jaw bone and which extends above the tooth socket to accommodate a replacement crown.

The exemption can apply also to TPP that is not designed to be permanently implanted, such as an intra-uterine device that is implanted by being inserted into and affixed to the walls of a uterus by a healthcare provider and may remain implanted for a number of years before it is removed by a healthcare provider.

Ear and body piercings are not implanted; therefore, they do not qualify for exemption under PSTERR paragraph 8(1)(b).

R.2 Implants Used For Cosmetic Or Recontructive Purposes (Issued: 2014/04)

The exemption under PSTERR paragraph 8(1)(b) is unconditional, and applies regardless of the reason why the TPP is being implanted. Therefore, cosmetic implants or prostheses such as breast implants, horn implants and hair implants that are designed to be implanted in the human body through elective cosmetic or reconstructive surgery qualify for an exemption.

Because the exemption is based on the design of the TPP and not its use, the exemption applies to both the individuals receiving the implanted TPP and the surgeons, professional corporations and private health care providers who acquire the implants for use in providing their services.

Note: Any TPP used in surgery that will not remain implanted in the body, such as sizers and tissue expanders that are for some implant procedures temporarily inserted in the body as part of the surgical process and then removed and discarded - along with equipment, instruments or supplies purchased by the surgeon or health care provider for use in providing surgical services - are taxable, unless a specific exemption applies.

PSTERR - SEC.8(1)(D)/R.1

(1)(d) Hospital-Style Beds

R.1 Hospital-Style Beds (Issued: 2014/04)

Hospital-style beds are exempt from PST under PSTERR paragraph 8(1)(d) when purchased on the prescription of a practitioner.

A hospital-style bed is a basic adjustable bed of the type that is routinely purchased by hospitals. It must include side railings and be able to move the head/torso and leg/foot areas up and down. Hospital style beds purchased by persons without a prescription from a practitioner are subject to tax.

Please note: Although hospital-style beds qualify for the exemption when purchased on a prescription for an individual, they do not qualify when purchased by a hospital or similar entity. This is because the exemption applies only when the hospital-style bed is sold on prescription.

Adjustable beds designed for use by any person for their personal comfort at home do not qualify for this exemption. While these beds move the head/torso and leg/foot areas up and down, they do not typically have side railings. These beds may also provide additional features such as massage systems and radiant heating. Examples include the Simmons and Ultramatic adjustable bed products. While frequently used by persons with a permanent disability or handicap, sales of these beds are subject to tax. This applies whether or not the purchaser has a prescription from a practitioner.

Division 2 — Clothing

Section 9 – Children’s Clothing And Footwear

PSTERR - SEC.9/Int.-R.2

References:

Act: Section 1 "collector", "director", "purchase price", "registered charity", "use"; Part 3; Section 145

PSTERR: Section 1 "obtain"

PSTR: Section 24

Bulletin PST 201

Interpretation (Issued: 2014/02; Revised: 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends PSTERR subsection 9(6) to replace “a form acceptable to the director” with “a form specified by the director.” The director has specified that the form that must be used to claim the exemption is a Certificate of Exemption – Children’s Clothing and Footwear (FIN 425).

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 9 exemptions from tax for specified clothing and footwear for children.

Subsection 9(1) provides that in PSTERR section 9:

"adult-sized clothing or footwear" means the following, in sizes designed for adults:

(a) garments;

(b) hosiery, hats, ties, belts, suspenders, mittens and gloves;

(d) footwear;

"children's clothing" means the following:

(a) garments designed for babies, including bibs, baby blankets, shawls, receiving blankets, bunting bags, cloth diapers, diaper liners, plastic pants and rubber pants;

(b) children's garments that are

(i) designed for girls and of a size not greater than the size that is girls' size 16 according to the national standard applicable to the garments,

(ii) designed for boys and of a size not greater than the size that is boys' size 20 according to the national standard applicable to the garments, or

(iii) if no national standard applies to the garments, advertised or marketed as being of a size designed for children;

(d) uniforms in sizes designed for children, including uniforms for school, sports or recreational activities;

"children's footwear" means footwear designed

(a) for babies, or

(b) for girls or boys and that has an insole length of 24.25 cm or less;

"national standard" means a standard of the National Standards of Canada, as they read on April 1, 2013, in the subject area CAN/CGSB-49, Garment Sizes, published by the Canadian General Standards Board;

"youth organization" means

(a) a society incorporated under the Society Act,

(b) a registered charity, or

that administers a team, activity or program that includes children under 15 years of age.

Subsection 9(2) provides that subject to PSTERR subsection 9(4), children's clothing and children's footwear are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act.

Subsection 9(3) provides that subject to PSTERR subsection 9(4), adult-sized clothing or footwear is exempt from tax imposed under Part 3 of the Act if the adult-sized clothing or footwear is obtained for a child under 15 years of age.

Subsection 9(4) provides that the exemptions under PSTERR subsections 9(2) and 9(3) do not apply to the following:

(a) aprons and smocks, if the apron or smock is designed to be worn over and to protect other clothing;

(b) athletic equipment, including supports and pads;

(d) disposable diapers;

(e) gloves advertised or marketed primarily for use in sports, other than skiing or snowboarding;

(f) handkerchiefs;

(g) ice skates, roller skates and inline skates;

(h) scarves, other than scarves sold as part of a uniform;

(i) shoe insoles and shoelaces;

(j) snowshoes;

(k) sport pinnies and scrimmage vests;

(l) swimfins.

Subsection 9(5) provides that PSTERR subsection 9(3) is prescribed for the purposes of paragraph 145(1)(a) [provisions providing exemptions in relation to tangible personal property] of the Act.

Subsection 9(6) provides that for the purposes of subsection 145(1.1) [evidence required to claim certain exemptions in relation to tangible personal property or software] of the Act, in relation to a person who alleges that adult-sized clothing or footwear is exempt under PSTERR subsection 9(3), the collector is required to obtain all of the following:

(a) the full name, address and telephone number of that person;

(b) the following information:

(i) if the adult-sized clothing or footwear is obtained by or on behalf of a youth organization, the name of the youth organization;

(ii) in any other case, the full name of the child for whom the adult-sized clothing or footwear is being obtained;

(d) a declaration in a form acceptable to the director (a Certificate of Exemption – Children’s Clothing and Footwear (FIN 425)).

R.1 Children's Clothing And Footwear (Issued: 2014/04)

Exempt items:

The following items are children's clothing and children's footwear and qualify for the PSTERR subsection 9(2) exemption for children's clothing and children's footwear (provided that the size requirements are met, where applicable):

cleated shoes (i.e., cleats), including soccer, rugby and football cleats
cloth training pants and plastic pants
costumes sold without masks, toys or accessories
dance clothing and shoes
gloves for skiing and snowboarding
golf shoes
motocross jackets, jerseys, pants, boots and vests (but not motocross gloves or chaps)
reusable swimming diapers ("swimmers")
security blankets and wearable blankets
ski boots and snowboard boots
swaddling and sleep sacs
swimsuits

Additional exempt items are listed in Bulletin PST 201.

Taxable items:

The following items are not children's clothing and children's footwear and do not qualify for the PSTERR subsection 9(2) exemption for children's clothing and children's footwear:

athletic equipment, including shin guards, hockey pads, elbow pads, wrist guards, hockey pants, shoulder pads, gloves for sports (except gloves for skiing and snowboarding), and hockey socks (designed to pull over hockey equipment)
costumes that are sold with masks, toys or accessories (e.g., headbands, scarves, parasols)
earmuffs
motocross gloves, goggles, chaps and sunglasses
sunglasses
swim goggles and bathing caps
wigs

Additional taxable items are listed in Bulletin PST 201.

R.2 T-Shirt Transfers (Issued: 2014/07)

If a transfer is applied to a T-shirt before the transaction is finalized, the purchase price of the T-shirt plus transfer is exempt if the T-shirt is in children's sizes or is obtained for a child under 15 years of age. If the transfer is sold separately from the T-shirt, it is taxable.

Section 10 – Used Clothing And Footwear

PSTERR - SEC.10/Int.-R.4

References:

Act: Section 1 "purchase price", "retail sale"; Part 3

PSTR: Section 24

Bulletin PST 304

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 10 an exemption from tax for used clothing and footwear.

PSTERR section 10 provides that an item of used clothing or used footwear is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act if

(a) the item was previously sold at a retail sale and previously used as clothing or footwear, and

(b) the purchase price of the item is less than $100.

The exemption does not apply to items of used clothing that are leased (e.g., formal wear).

R.1 Rentals And Leases (Issued: 2014/04)

The exemption under PSTERR section 10 only applies to sales of used clothing and footwear. Rentals and leases of costumes, uniforms, formal wear, and other used clothing and footwear do not qualify for the exemption.

R.2 Defining "Used Clothing" And "Used Footwear" (Issued: 2014/04)

The exemption for "used clothing" and "used footwear" under PSTERR section 10 refers to items of clothing and footwear that have been owned and are not merely unsold or tried on. The intention is that the clothes be "secondhand" - that they have been owned by a purchaser and then sold to someone else. This reflects the common understanding that used clothing or footwear was purchased new, worn by a purchaser, and subsequently provided for resale, usually to a secondhand store.

When a purchaser returns an item and the full purchase price and tax is refunded to them, the item is not considered "used", because such returns are only made where the merchandise has clearly not been used. Similarly, items that were on display, became faded or damaged, and are then sold are not "used".

Clothing made from pieces of cleaned and sterilized salvage clothing is subject to tax. The finished article does not retain the status of used clothing.

However, any used garment which is sold after simply being cleaned and repaired would be considered used clothing.

R.3 Items That Are Used Clothing Or Used Footwear (Issued: 2014/04)

The exemption under PSTERR section 10 for used clothing or used footwear includes the following items:

belts and suspenders
cleated shoes (i.e. cleats), including soccer, rugby and football cleats
costumes without masks, toys or accessories
dance clothing and shoes
gloves (not sports gloves), mittens, skiing and snowboarding gloves
hats
hosiery
ski boots and snowboard boots
ties
uniforms, including scarves sold with a uniform

R.4 Items That Are Not Used Clothing Or Used Footwear (Issued: 2014/04)

The exemption under PSTERR section 10 for used clothing or used footwear does not apply to the following items:

aprons and smocks
athletic equipment
costumes with masks, toys or accessories
earmuffs
hair accessories
handbags and purses
handkerchiefs
jewelry
scarves (except with a uniform)
sports gloves (other than skiing and snowboarding gloves)
sunglasses
swim goggles and bathing caps
wigs

Section 11 – Clothing Patterns And Related Materials

PSTERR - SEC.11/Int.

References:

Act: Part 3; Part 3 – Division 9

PSTERR: Schedule 5

PSTR: Section 24

Bulletin PST 130

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 as amended by OIC 441/2013 provides under PSTERR section 11 exemptions from tax for clothing patterns and for yarn, natural fibres, synthetic thread and fabric that are commonly used in making or repairing clothing.

Subsection 11(1) provides that clothing patterns are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act.

Subsection 11(2) provides that subject to PSTERR subsection 11(3), yarn, natural fibres, synthetic thread and fabric that are commonly used in making or repairing clothing are exempt from tax imposed under Part 3 of the Act, other than Division 9 [Change in Use].

Subsection 11(3) provides that the exemption under PSTERR subsection 11(2) does not apply to tangible personal property described in PSTERR Schedule 5 [Tangible Personal Property Not Exempt Under Section 11].

PSTERR - SEC.11(2)/R.1-R.2

(2) Yarn, Natural Fibres, Synthetic Thread and Fabric

R.1 Saris And Pre-Cut Suits (Issued: 2014/04)

The intent of PSTERR section 11 is to exempt certain items used to make clothing. In applying this exemption to such items as saris, sarongs, and pre-cut suits, the issue is whether or not the item purchased by the customer is clothing (to be worn as-is) or material to make clothing. Particularly with such items as saris and sarongs, it may be necessary to base the determination on the manner in which the item is sold.

The following are exempt as sales of fabric:

Material cut by the retailer from a bolt of cloth at the customer's request, even if the bolt of cloth has a pre-printed cutting line to facilitate cutting lengths.
Material lengths for making saris that are pre-cut from a bolt of cloth by the retailer to meet the expected needs of his customers for sari length materials. While a customer may choose to wear such pre-cut lengths without further sewing, such pre-cut lengths are no different than sales of roll ends of the bolts of cloth. They are sold as material to make clothing, not as clothing.
Pre-cut suits consisting of two or three pieces of material that have to be sewn together to make the pants/skirt, dress/shirt and a scarf, whether the material is pre-embroidered, beaded or has other types of patterns embedded into it.

The following are subject to PST because they are sold as clothing, not as fabric to make clothing:

Lengths of material packaged and sold as saris that may or may not include the fitted bodice, and may be worn as-is or may be hemmed to avoid fraying ends.
Saris, acquired by the retailer as saris, that have an extra length that may be cut off to make a bodice. These items are subject to PST because they are purchased and sold as saris, and they can be worn as-is.

Also, saris in children's sizes may qualify for exemption under PSTERR section 9 [children's clothing and footwear].

R.2 "Commonly Used" (Issued: 2014/10)

PSTERR subsection 11(2) exempts "yarn, natural fibres, synthetic thread and fabric that are commonly used in making or repairing clothing".

To qualify for this exemption, an item must be regularly used for making or repairing clothing (e.g. the sort of cotton cloth that is commonly used for making shirts, skirts, or dresses). It is not necessary that the item be used exclusively for these purposes (the same cotton cloth could also be used to make curtains, but that does not disqualify it from exemption). Items are only excluded from qualification and subject to PST if they are rarely used to make or repair clothing (e.g. oilcloth).

An item is not excluded from this exemption simply because it is of an unfashionable colour, pattern, or style. For example, cloth of the type commonly used for making a suit or jacket is exempt, even if its colour or pattern may be considered unusual.

Division 3 — School Supplies

Section 12 – Definition

PSTERR - SEC.12/Int.

References:

Act: Section 1 "lessee"

PSTERR: Section 1 "obtain"; Part 2 – Division 3

PSTR: Section 24

Bulletin PST 202

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 12 that in PSTERR Division 3 [School Supplies] of PSTERR Part 2 [Exemptions in Relation to Tangible Personal Property], "obtain" does not include leasing tangible personal property as a lessee.

Section 13 – School Supplies Obtained For Use Of Student

PSTERR - SEC.13/Int.

References:

Act: Section 1 "use"; Part 3

PSTERR: Section 1 "obtain", "qualifying school"

PSTR: Section 24

Bulletin PST 202

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 13 that the following are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act if obtained for the use of a student who is enrolled in an educational program provided by a qualifying school or who is being educated in accordance with Division 4 [Home Education] of Part 2 of the School Act:

(a) bags specifically designed to carry school books and supplies, other than the following:

(i) attaché cases;

(ii) backpacks;

(iii) bags with wheels;

(iv) briefcases;

(v) knapsacks;

(vi) sports bags;

(vii) tote bags;

(b) drawing instruments, including geometry instruments;

(d) glue;

(e) ink;

(f) lined, unlined, drawing, graph and music manuscript paper;

(g) paints and paint brushes, other than theatrical make-up and brushes and carrying cases associated with that make-up;

(h) pencil and wax crayons;

(i) pencils;

(j) pens, other than fountain pens and nibs;

(k) ring binders;

(l) rulers;

(m) school art portfolios;

(n) work books.

Section 14 – School Supplies Obtained By Qualifying School, School Board Or Similar Authority

PSTERR - SEC.14/Int.-R.1

References:

Act: Section 1 "software", "substantially", "use"; Part 3; Part 3 – Division 9; Section 145

PSTERR: Section 1 "obtain", "qualifying school"

PSTR: Section 24

Bulletin PST 202

Interpretation (Issued: 2014/02)

Effective October 25, 2013, OIC 441/2013 amended PSTERR section 14 by adding PSTERR subsection 14(4). This provides authority for a collector to require, from a qualifying school, school board or similar authority, a detailed list or purchase order that clearly indicates the specified school supplies and their relative PST-exempt portion as supporting documentation for that purchaser to claim an exemption under PSTERR subsections 14(1) and 14(3).

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 14 an exemption from tax for specified school supplies obtained by a qualifying school, school board or similar authority.

The exemption under PSTERR section 14 does not apply to purchases by teachers as individuals (i.e., where they are not acting on behalf of a qualifying school, school board or similar authority).

Subsection 14(1) provides that subject to PSTERR subsection 14(2), the following are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use], if obtained by a qualifying school, school board or similar authority for the use of students or for use in instructing students:

(a) cellulose tape;

(b) chalk;

(d) lesson notes, précis, examinations, test papers, answer keys, work sheets and other similar materials, and material to manufacture those materials;

(e) paper clips;

(f) pens and markers for use on whiteboards;

(g) rubber bands;

(h) software obtained for use

(i) on a computer, and

(ii) substantially as a teaching aid for students;

(i) staples;

(j) visual or audio aids and recordings, other than the following:

(i) educational toys, geometric forms, models, display stands and felt boards;

(ii) equipment obtained for use to record, play, project, view or access audio or video;

(k) wooden pencil boxes;

(l) supplies and materials obtained for consumption in home economics courses, other than the following:

(i) cutlery, dishes, pots and pans;

(ii) table linen and towels;

(iii) bobbins, needles, scissors, sewing machine attachments and tape measures;

(iv) tools and equipment;

(m) supplies and materials obtained for consumption in woodworking, metal working or other industrial arts courses, other than tools and equipment including drill bits, re-usable electrical and electronic parts, grinding wheels and saw blades;

(n) animals, either living or dead, and parts of animals, obtained for use in scientific research or experiments;

(o) supplies and materials, including chemicals, obtained for consumption in science courses, other than the following:

(i) alcohol burner wicks;

(ii) containers obtained for use as hazardous waste disposal units for phlebotomy sharps;

(iii) fossils, rocks, minerals and other geological specimens;

(iv) gas lighter flints;

(v) glassware;

(vi) lubricants obtained for use to maintain and prevent spotting, staining and rusting of surgical instruments;

(vii) needles;

(viii) non-disposable gloves;

(ix) osteological preparations;

(x) animal feed;

(xi) supplies for animals;

(xii) prepared microscope slides;

(xiii) preserved specimens for display;

(xiv) skeletons;

(xv) surgical instruments;

(xvi) syringes;

(xvii) tools and equipment;

(p) supplies and materials obtained for consumption in arts courses, other than the following:

(i) instrument picks and strings;

(ii) tools and equipment;

(q) supplies and materials obtained for consumption in commercial or business courses, other than tools and equipment;

(r) supplies and materials obtained for consumption in vocational training courses, other than tools and equipment.

Subsection 14(2) provides that the following are not exempt under PSTERR subsection 14(1):

(a) chalkboards, chalkboard erasers and chalkboard cleaning materials;

(b) whiteboards, whiteboard erasers and whiteboard cleaning materials;

(i) on a computer, and

(ii) by teachers to assess or evaluate students or to report on students' progress;

(d) plaques, trophies, awards, certificates and stickers.

Subsection 14(3) provides that photocopier toner obtained by a qualifying school, school board or similar authority is exempt from tax imposed under Part 3 of the Act in respect of the portion of the photocopier toner that can reasonably be attributed to the use of the toner in making copies

(a) for the use of students, or

(b) for use in instructing students.

Subsection 14(4) provides that PSTERR subsections 14(1) and 14(3) are prescribed for the purposes of paragraph 145(1)(a) [provisions providing exemptions in relation to tangible personal property] of the Act.

R.1 School Supplies Lists (Issued: 2014/04)

The following lists are representative of items which are normally purchased by qualifying school, school boards and similar authorities for use in schools. These are not intended to be complete lists and do not repeat the items specifically listed in PSTERR section 14, many of which are also included in Bulletin PST 202. The following lists are compiled only as an additional guide to indicate the types of items that are exempt and those that are subject to PST.

Note: Only those items obtained by a qualifying school, school board or similar authority for use by students or for use in instruction students are exempt under PSTERR section 14.

PSTERR subsection 14(1) General - The following taxable list applies to all purchases, even when purchased for use by students or for use in the instruction of students:

Subject to PST

Batteries and dry cells for general use (may be exempt if obtained for consumption in specific courses, e.g., science courses)
Chalkboard drawing instruments
Chairs
Desks
Drafting equipment
Lunch kits
Library supplies for cataloguing or protecting books, magazines and other holdings
Trays and baskets for paper
Waste baskets

PSTERR paragraph 14(1)(l) - The following PST-exempt list applies to supplies and materials obtained for consumption in home economics courses:

Bias tape
Binding tape
Laundry and cleaning compounds
Paper towels and serviettes
Straight pins
Zippers, buttons and fasteners

PSTERR paragraph 14(1)(m) - The following PST-exempt list applies to supplies and materials obtained for consumption in industrial arts courses (e.g., metal working and woodworking):

Electric and friction tape
Electrodes for welding
Metal (e.g., sheet metal)
Nails, screws, nuts and bolts
Oxygen and acetylene gases
Paint, solvent and filler
Pipes and fitting
Solder, flux, electrodes, wire and rods for welding
Wood

PSTERR paragraph 14(1)(o) - The following PST-exempt list applies to supplies and materials obtained for consumption in science courses:

Disposable gloves
Gases
Labels
Litmus paper
Paper filters
Plastic cover slips (disposable) - used to cover specimens on microscopic slides
Plastic Petri dishes (disposable, one-time use)
Plastic pipettes and tubing (disposable, one-time use)
Specimens consumed through demonstration in the course
Stirring sticks for chemistry labs
Transparencies
Wood splints for oxygen testing

PSTERR paragraph 14(1)(p) - The following PST-exempt lists apply to supplies and materials obtained for consumption in arts courses (e.g., arts and crafts, music):

Arts and Crafts

Linoleum
Modelling clay
Stencils

Music Courses

Cork grease
Music manuscript paper
Reeds (e.g., for clarinets, saxophones or oboes)
Rolling paper (e.g., for use with flutes)
Swabs (e.g., for clarinets or flutes)
Valve oil

PSTERR paragraph 14(1)(r) - The following PST-exempt list applies to supplies and materials obtained for consumption in vocational courses:

Aesthetics Courses

Antiseptic soaps and skin cleansers
Cotton balls
Electro-coagulation needles
Face masks
Latex gloves
Liquid sterilants
Makeup and brushes
Paper towels
Topical anesthetics

Automotive Courses

Grease
Motor oil
Paper towels
Rags
Single use engine parts, such as spark plugs, air filters and oil filters

Division 4 — Publications

Section 15 – Definitions

PSTERR - SEC.15/Int.

References:

Act: Section 1 "promotional material", "software", "use"

PSTERR: Part 2 – Division 4

PSTR: Section 24

Bulletin PST 205

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 15 that in PSTERR Division 4 [Publications] of PSTERR Part 2 [Exemptions in Relation to Tangible Personal Property]:

"advertising and promotional content", in relation to a magazine, periodical or newspaper, includes the following:

(a) all advertisements, promotional material and promotional articles, irrespective of who bears the cost for the publication of the advertisement, promotional material or promotional article;

(b) all material and articles paid for or sponsored by a person who is not an owner or publisher of the magazine, periodical or newspaper;

"editorials, news and articles of local or common interest content", in relation to a newspaper, includes the following:

(a) maps, charts, pictures and diagrams that are related to, or are a part of, that content;

(b) the masthead;

(d) public service listings of events, activities or attractions for which no consideration of any kind is paid or exchanged and for which editorial control rests solely with the publisher;

(e) business market quotations;

(f) sports scores;

(g) movie, theatre and other reviews;

(h) weather forecasts;

(i) comics;

(j) crosswords and similar puzzles;

(k) horoscopes;

(l) television listings;

(m) letters to the editor,

but does not include excluded content and advertising and promotional content;

"excluded content", in relation to a publication, means covers, indices, tables of contents, borders and duplicated or blank pages;

"excluded publication" means the following:

(a) directories, programs, price lists, timetables, rate books, reports, albums, course calendars, date calendars, sports or recreation calendars, brochures and pamphlets;

(b) a publication that is published for the same or a similar purpose as a publication referred to in paragraph (a);

(c) catalogues and similar publications whose primary purpose is to describe, or to promote or encourage the purchase, use or consumption of, tangible personal property, software, services or real property;

"magazine" means a printed and bound publication in a magazine format that is issued at regular intervals each year by

(a) a professional body,

(b) a trade or industrial organization,

(d) a not-for-profit corporation, or

(e) an employer to the employer's employees,

but does not include an excluded publication;

"newspaper" means a printed and unbound publication in a newspaper format that is published at regular intervals each year, but does not include the following:

(a) an excluded publication;

(b) advertising material known as flyers, or advertising circulars, even if the flyers or advertising circulars are sold or given away as part of the publication;

"periodical" means a printed and bound publication in a periodical format that is issued at regular intervals each year by

(a) a professional body,

(b) a trade or industrial organization,

(d) a not-for-profit corporation,

but does not include an excluded publication;

"technical, literary, editorial and pictorial content", in relation to a magazine or periodical, includes

(a) maps, charts, pictures and diagrams that are related to, or are a part of, that content,

(b) the masthead, and

but does not include excluded content and advertising and promotional content.

PSTERR - SEC.15/Excluded Content/R. 1

EXCLUDED CONTENT

R.1 Covers (Issued: 2014/04)

For the purposes of the definition of "excluded content", a covering of a publication qualifies as a "cover" only if it is distinguishable from the remaining pages of the publication. For example, to be distinguishable the cover may be made of a heavier weight or different texture of paper, or be a title sheet that is folded over the page of the publication.

If a cover meets the conditions described above, the entire area of the outside faces of the front and back covers is excluded content, regardless of their content. Those outside faces are what a reader ordinarily would understand as the covers of the publication.

The inside face of the front cover and the inside face of the back cover may not necessarily qualify as excluded content. One or both of those inside faces may not be excluded content if its content is indistinguishable from the rest of the publication by virtue of containing technical, literary, editorial and pictorial content (in relation to a magazine or periodical) or editorials, news and articles of local or common interest content (in relation to a newspaper) of the same type and form as is contained elsewhere in the publication.

Section 16 – Publications

PSTERR - SEC.16/Int.

References:

Act: Part 3

PSTERR: Section 15 "editorials, news and articles of local or common interest content", "magazine", "newspaper", "periodical", "technical, literary, editorial and pictorial content"; Section 17

PSTR: Section 24

Bulletin PST 205

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 16 exemptions from tax for specified publications.

Subsection 16(1) provides that the following are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act:

(a) a printed and bound book that

(i) contains no advertising, and

(ii) is published solely for educational, technical, cultural or literary purposes,

but not a directory, price list, timetable, rate book, catalogue, report, fashion book, album or any other similar book;

(b) an employee newsletter;

(d) sheet music;

(e) a magazine or periodical if at least 10% of the content is composed of technical, literary, editorial and pictorial content;

(f) a newspaper if at least 20% of the content is composed of editorials, news and articles of local or common interest content.

Subsection 16(2) provides that if a publication is sold or given away with another publication, a determination of whether each publication qualifies for an exemption under PSTERR paragraph 16(1)(e) or 16(1)(f) must be based on the content of each publication considered separately.

PSTERR - SEC.16(1)(A)/R.1

(1)(a) Printed and Bound Book

R.1 Contract Documents (Issued: 2014/04)

A contract and appendices that have been printed and bound with staples or by other means do not qualify as an exempt publication. Although the signed or unsigned agreement is printed, bound and contains no advertising, the publication does not meet the common or ordinary meaning of the term book. The addition of a staple or other form of binding to a copy of contract documents does not change the nature of the contract to that of a book. Such a publication falls into the same general class as a report.

Section 17 – Calculation Of Content Of Magazines, Periodicals And Newspapers

PSTERR - SEC.17/Int.

References:

PSTERR: Section 15 "editorials, news and articles of local or common interest content", "excluded content", "magazine", "newspaper", "periodical", "technical, literary, editorial and pictorial content"; Section 16

PSTR: Section 24

Bulletin PST 205

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 17 the rules regarding calculating the content of magazines, periodicals and newspapers.

Subsection 17(1) provides that for the purposes of PSTERR paragraph 16(1)(e) [publications], the technical, literary, editorial and pictorial content of a magazine or periodical must be calculated by

(a) determining the area of all the pages of the magazine or periodical,

(b) determining the area of the excluded content of the magazine or periodical,

(c) subtracting the area determined under PSTERR paragraph 17(1)(b) from the area determined under PSTERR paragraph 17(1)(a),

(d) determining the area of the technical, literary, editorial and pictorial content of the magazine or periodical, and

(e) calculating, as a percentage, the proportion that the area determined under PSTERR paragraph 17(1)(d) is to the area that results from the calculation under PSTERR paragraph 17(1)(c).

Subsection 17(2) provides that for the purposes of PSTERR paragraph 16(1)(f), the editorials, news and articles of local or common interest content of a newspaper must be calculated by

(a) determining the area of all the pages of the newspaper,

(b) determining the area of the excluded content of the newspaper,

(c) subtracting the area determined under PSTERR paragraph 17(2)(b) from the area determined under PSTERR paragraph 17(2)(a),

(d) determining the area of the editorials, news and articles of local or common interest content of the newspaper, and

(e) calculating, as a percentage, the proportion that the area determined under PSTERR paragraph 17(2)(d) is to the area that results from the calculation under PSTERR paragraph 17(2)(c).

Division 5 — Gifts, Prizes, Draws and Awards

Section 17.1 – Gifts

PSTERR - SEC.17.1/Int.

References:

Act: Section 1 "boat", "Excise Tax Act", "registered charity", "vehicle"; Section 49; Section 51

PSTERR: Section 26; Section 57

PSTR: Section 24

Bulletin PST 312

Interpretation (Issued: 2014/02)

Effective April 1, 2013, OIC 441/2013 added PSTERR section 17.1.

PSTERR section 17.1 provides an exemption from tax imposed under section 49 of the Act for gifts of tangible personal property, other than a vehicle, boat or aircraft, brought into British Columbia for use.

Subsection 17.1(1) provides that in PSTERR section 17.1:

"person" does not include a registered charity;

"tangible personal property" does not include a vehicle, boat or aircraft.

Subsection 17.1(2) provides that subject to PSTERR section 17.1, a person is exempt from tax imposed under section 49 [tangible personal property brought into British Columbia for use] of the Act in respect of tangible personal property if the person received the tangible personal property as a gift from a donor.

Subsection 17.1(3) provides that subject to PSTERR subsection 17.1(4), the exemption under PSTERR subsection 17.1(2) applies to a person in respect of tangible personal property only if the donor of the tangible personal property

(a) paid tax under the Act or the Social Service Tax Act in respect of the tangible personal property and has not obtained and is not entitled to obtain, under those Acts, a refund of that tax,

(b) paid tax under section 165(2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of the tangible personal property and has not obtained and is not entitled to obtain, under Part IX of that Act, a refund of or a credit or rebate for that tax,

(c) paid sales tax in respect of the tangible personal property to another province and has not obtained and is not entitled to obtain a refund of or a credit or rebate for that sales tax,

(d) received, before April 1, 2013, the tangible personal property as a gift in British Columbia, or

(e) was exempt, when that donor obtained the tangible personal property, from tax

(i) under the Social Service Tax Act, or

(ii) under the Act, other than under PSTERR section 26 [tangible personal property shipped outside British Columbia].

Subsection 17.1(4) provides that the exemption under PSTERR subsection 17.1(2) does not apply to a person in respect of tangible personal property if

(a) the donor of the tangible personal property paid tax in respect of the tangible personal property only under one or both of section 51 [tangible personal property brought into British Columbia for temporary use] of the Act and section 12 [calculation of tax if use in British Columbia temporary] of the Social Service Tax Act, and

(b) the total amount of tax referred to in PSTERR paragraph 17.1(4)(a) is less than the amount of tax that, but for PSTERR subsection 17.1(2), would be payable by the person under section 49 of the Act in respect of the tangible personal property.

Section 18 – Gifts Between Family Members

PSTERR - SEC.18/Int.-R.1

References:

Act: Section 1 "boat", "director", "Excise Tax Act", "related individual", "vehicle"; Section 30; Section 49; Section 50; Section 51; Section 100

PSTERR: Section 23; Section 24; Section 25; Section 26; Section 57; Section 126

PSTR: Section 24

Bulletin PST 312

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 as amended by OIC 441/2013 provides under PSTERR section 18 an exemption from tax for gifts of vehicles, boats and aircraft in the specified circumstances.

Subsection 18(1) provides that in PSTERR section 18:

"donor", in respect of a vehicle, boat or aircraft, means the related individual from whom the person referred to in PSTERR paragraph 18(2)(a) or PSTERR paragraph 18(2)(b) received the vehicle, boat or aircraft as a gift;

"related individual" includes a sibling.

Subsection 18(2) provides that subject to PSTERR section 18,

(a) a person is exempt from tax imposed under section 49 [tangible personal property brought into British Columbia for use] and section 50 [tax on registration of vehicle brought into British Columbia] of the Act in respect of a vehicle, boat or aircraft if the person received the vehicle, boat or aircraft as a gift from a related individual, and

(b) a person is exempt from tax imposed under section 100 [tax on gift of vehicle, boat or aircraft in British Columbia] of the Act in respect of a vehicle, boat or aircraft if the person receives the vehicle, boat or aircraft as a gift from a related individual.

Subsection 18(3) provides that subject to PSTERR subsection 18(5), the exemptions under PSTERR paragraphs 18(2)(a) and 18(2)(b) apply to a person in respect of a vehicle, boat or aircraft only if the donor of the vehicle, boat or aircraft

(a) paid tax under the Act, the Consumption Tax Rebate and Transition Act or the Social Service Tax Act in respect of the vehicle, boat or aircraft and has not obtained and is not entitled to obtain, under those Acts, a refund of that tax,

(b) paid tax under section 165(2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act in respect of the vehicle, boat or aircraft and has not obtained and is not entitled to obtain, under Part IX of that Act, a refund of or a credit or rebate for that tax,

(c) paid sales tax in respect of the vehicle, boat or aircraft to another province and has not obtained and is not entitled to obtain a refund of or a credit or rebate for that sales tax,

(d) received, before April 1, 2013, the vehicle, boat or aircraft as a gift in British Columbia, or

(e) was exempt, when that donor obtained the vehicle, boat or aircraft, from tax

(i) under the Consumption Tax Rebate and Transition Act or the Social Service Tax Act, or

(ii) under the Act, other than under any of the following provisions of the PSTERR:

section 23 [vehicle, boat or aircraft brought into British Columbia for gift];
section 24 [vehicle purchased for use outside British Columbia];
section 25 [aircraft purchased for use outside British Columbia];
section 26 [tangible personal property shipped outside British Columbia].

Subsection 18(4) provides that the exemptions under PSTERR paragraphs 18(2)(a) and 18(2)(b) do not apply to a person in respect of a vehicle, boat or aircraft if the donor of the vehicle, boat or aircraft

(a) received the vehicle, boat or aircraft as a gift during the 12 months before the date on which the donor gave that vehicle, boat or aircraft as a gift to the person referred to in PSTERR paragraph 18(2)(a) or 18(2)(b), and

(b) was exempt under PSTERR paragraph 18(2)(a) or 18(2)(b) from tax imposed under the Act in respect of the vehicle, boat or aircraft,

unless the donor received the vehicle, boat or aircraft referred to in PSTERR paragraph 18(4)(a) as a gift from the person referred to in PSTERR paragraph 18(2)(a) or 18(2)(b).

Subsection 18(5) provides that the exemptions under PSTERR paragraphs 18(2)(a) and 18(2)(b) do not apply to a person in respect of vehicle, boat or aircraft if

(a) the donor of the vehicle, boat or aircraft paid tax in respect of the vehicle, boat or aircraft only under one or both of section 51 [tangible personal property brought into British Columbia for temporary use] of the Act and section 12 [calculation of tax if use in British Columbia temporary] of the Social Service Tax Act, and

(b) the total amount of tax referred to in PSTERR paragraph 18(5)(a) is less than the amount of tax that, but for PSTERR paragraph 18(2)(a) or 18(2)(b), would be payable by the person under section 49, section 50 or section 100 of the Act, as applicable, in respect of the vehicle, boat or aircraft.

Subsection 18(6) provides that for the purposes of paragraph 30(7)(a) [evidence required to claim exemption in relation to tax payable in respect of vehicle] of the Act, in relation to a person who alleges that a vehicle is exempt under PSTERR paragraph 18(2)(a) or 18(2)(b), the Insurance Corporation of British Columbia (ICBC) is required to obtain a declaration in a form acceptable to the director (a completed Transfer/Tax form (APV9T) available from ICBC signed by both parties, and a Gift of a Vehicle (form FIN 319) completed by both parties).

R.1 Related Individuals (Issued: 2014/04)

"Related individual" is defined in the Act to have the same meaning as in the Property Transfer Tax Act. For the purposes of PSTERR section 18, "related individual" also includes siblings. The following relationships are considered to be related individuals for the purposes of PSTERR section 18:

spouse (legally married or living and cohabiting with another person in a marriage-like relationship, including a marriage-like relationship between persons of the same gender, and has been living and cohabiting in that relationship for a continuous period of at least 2 years)
brother, sister
child, grandchild, great-grandchild
stepchild, step grandchild, step great-grandchild
daughter-in-law, son-in-law
stepdaughter-in-law, stepson-in-law
granddaughter-in law, grandson-in law, step great-granddaughter-in-law, step great-grandson-in-law
step granddaughter-in law, step grandson-in law, step great-granddaughter-in-law, step great-grandson-in-law
parent, stepparent
grandparent, great-grandparent
step grandparent, step great-grandparent

The following are not considered related individuals for the purposes of PSTERR section 18:

brother-in-law or sister-in-law
foster parent or foster child
uncle or aunt
niece or nephew
cousin
persons who are divorced from one another (i.e., persons no longer legally married or living and cohabiting in a marriage-like relationship)

Section 19 – Registered Charities

PSTERR - SEC.19/Int.

References:

Act: Section 1 "boat", "director", "Excise Tax Act", "registered charity", "related individual", "vehicle"; Section 30; Section 49; Section 50; Section 51; Section 100

PSTERR: Section 23; Section 24; Section 25; Section 26; Section 57

PSTR: Section 24

Bulletin PST 312

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 19 exemptions from tax for specified gifts of tangible personal property received by a registered charity.

Subsection 19(1) provides that subject to PSTERR section 19,

(a) a registered charity is exempt from tax imposed under section 49 [tangible personal property brought into British Columbia for use] and section 50 [tax on registration of vehicle brought into British Columbia] of the Act in respect of tangible personal property if the registered charity received the tangible personal property as a gift from a donor, and

(b) a registered charity is exempt from tax imposed under section 100 [tax on gift of vehicle, boat or aircraft in British Columbia] of the Act in respect of a vehicle, boat or aircraft if the registered charity receives the vehicle, boat or aircraft as a gift from a donor.

Subsection 19(2) provides that subject to PSTERR subsection 19(3), the exemptions under PSTERR paragraphs 19(1)(a) and 19(1)(b) apply to a registered charity in respect of tangible personal property only if the donor of the tangible personal property

(a) paid tax under the Act, the Consumption Tax Rebate and Transition Act or the Social Service Tax Act in respect of the tangible personal property and has not obtained and is not entitled to obtain, under those Acts, a refund of that tax,

(b) paid tax under section 165(2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act in respect of the tangible personal property and has not obtained and is not entitled to obtain, under Part IX of that Act, a refund of or a credit or rebate for that tax,

(c) paid sales tax in respect of the tangible personal property to another province and has not obtained and is not entitled to obtain a refund of or a credit or rebate for that sales tax,

(d) received, before April 1, 2013, the tangible personal property as a gift in British Columbia, or

(e) was exempt, when that donor obtained the tangible personal property, from tax

(i) under the Consumption Tax Rebate and Transition Act or the Social Service Tax Act, or

(ii) under the Act, other than under any of the following provisions of the PSTERR:

section 23 [vehicle, boat or aircraft brought into British Columbia for gift];
section 24 [vehicle purchased for use outside British Columbia];
section 25 [aircraft purchased for use outside British Columbia];
section 26 [tangible personal property shipped outside British Columbia].

Subsection 19(3) provides that the exemptions under PSTERR paragraphs 19(1)(a) and 19(1)(b) do not apply to a person in respect of tangible personal property if

(b) the total amount of tax referred to in PSTERR paragraph 19(3)(a) is less than the amount of tax that, but for PSTERR paragraph 19(1)(a) or 19(1)(b), would be payable by the person under section 49, section 50 or section 100 of the Act, as applicable, in respect of the tangible personal property.

Subsection 19(4) provides that for the purposes of paragraph 30(7)(a) [evidence required to claim exemption in relation to tax payable in respect of vehicle] of the Act, in relation to a person who alleges that a vehicle is exempt under PSTERR paragraph 19(1)(a) or 19(1)(b), the Insurance Corporation of British Columbia (ICBC) is required to obtain a declaration in a form acceptable to the director (a completed Transfer/Tax form (APV9T) available from ICBC signed by both parties and a Gift of a Vehicle (form FIN 319) completed by both parties).

Section 20 – Prizes, Draws And Awards

PSTERR - SEC.20/Int.

References:

Act: Section 1 "boat", "director", "Excise Tax Act", "vehicle"; Section 30; Section 49; Section 50; Section 51; Section 100

PSTERR: Section 23; Section 24; Section 25; Section 26; Section 57

PSTR: Section 24

Bulletin PST 312

Interpretation (Issued: 2014/02)

Effective October 25, 2013, OIC 441/2013 amended PSTERR section 20 by adding PSTERR subsection 20(7). This provides authority for the Insurance Corporation of British Columbia (ICBC) to require the person who receives a vehicle as a gift, prize or award to provide a completed Transfer/Tax form (APV9T) to claim an exemption under PSTERR paragraph 20(2)(a) or PSTERR paragraph 20(2)(b).

Effective April 1, 2013, B.C. Reg. 97/2013 as amended by OIC 441/2013 provides under PSTERR section 20 exemptions from tax for vehicles, boats and aircraft received as prizes, draws and awards.

Subsection 20(1) provides that in PSTERR section 20, "donor", in respect of a vehicle, boat or aircraft, means the person from whom the person referred to in PSTERR paragraph 20(2)(a) or 20(2)(b) received the vehicle, boat or aircraft.

Subsection 20(2) provides that subject to PSTERR section 20,

(b) a person is exempt from tax imposed under section 100 [tax on gift of vehicle, boat or aircraft given in British Columbia] of the Act in respect of a vehicle, boat or aircraft if the person receives the vehicle, boat or aircraft as a result of any of the circumstances described in PSTERR subsection 20(3).

Subsection 20(3) provides that subject to PSTERR subsection 20(4), the exemptions under PSTERR paragraphs 20(2)(a) and 20(2)(b) apply to a person in respect of a vehicle, boat or aircraft only if the person received the vehicle, boat or aircraft as a result of any of the following circumstances:

(a) a lawful lottery scheme within the meaning of section 207 of the Criminal Code;

(b) a contest, game of chance or skill, or mixed chance and skill, or a disposition by any mode of chance, skill or mixed chance and skill;

(d) a draw or awarding of a prize if the only consideration provided by the person who received the vehicle, boat or aircraft is in the form of an entrance or admission fee, a ticket fee or another similar charge.

Subsection 20(4) provides that the exemptions under PSTERR paragraphs 20(2)(a) and 20(2)(b) do not apply to a person in respect of a vehicle, boat or aircraft if the person received the vehicle, boat or aircraft as a result of a private arrangement, including a wager, between 2 or more persons.

Subsection 20(5) provides that subject to PSTERR subsection 20(6), the exemptions under PSTERR paragraphs 20(2)(a) and 20(2)(b) apply to a person in respect of vehicle, boat or aircraft only if the donor of the vehicle, boat or aircraft

(c) paid sales tax in respect of the vehicle, boat or aircraft to another province and has not obtained and is not entitled to obtain a refund of or a credit or rebate for that sales tax,

(d) received, before April 1, 2013, the vehicle, boat or aircraft as a gift in British Columbia, or

(e) was exempt, when that donor obtained the vehicle, boat or aircraft, from tax

(i) under the Consumption Tax Rebate and Transition Act or the Social Service Tax Act, or

(ii) under the Act, other than under any of the following provisions of the PSTERR:

section 23 [vehicle, boat or aircraft brought into British Columbia for gift];
section 24 [vehicle purchased for use outside British Columbia];
section 25 [aircraft purchased for use outside British Columbia];
section 26 [tangible personal property shipped outside British Columbia].

Subsection 20(6) provides that the exemptions under PSTERR paragraphs 20(2)(a) and 20(2)(b) do not apply to a person in respect of a vehicle, boat or aircraft if

(b) the total amount of tax referred to in PSTERR paragraph 20(6)(a) is less than the amount of tax that, but for PSTERR paragraph 20(2)(a) or 20(2)(b), would be payable by the person under section 49, section 50 or section 100 of the Act, as applicable, in respect of the vehicle, boat or aircraft.

Subsection 20(7) provides that for the purposes of paragraph 30(7)(a) [evidence required to claim exemption in relation to tax payable in respect of vehicle] of the Act, in relation to a person who alleges that a vehicle is exempt under PSTERR paragraph 20(2)(a) or 20(2)(b), ICBC is required to obtain a declaration in a form acceptable to the director (a completed Transfer/Tax form (APV9T) available from ICBC signed by both parties).

Section 21 – Inheritance Of Tangible Personal Property

PSTERR - SEC.21/Int.-R.1

References:

Act: Part 3

PSTERR: Section 57

PSTR: Section 24

Bulletin PST 308

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 21 that tangible personal property transferred as part of the distribution of a deceased individual's estate is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act.

R.1 Application Of PSTERR Section 21 (Issued: 2014/04)

The requirement for exemption under PSTERR section 21 is that the TPP (including vehicles) must be transferred as part of the distribution of a deceased individual's estate.

There is no requirement that the specific name of the individual be in the will. For example, a will could provide that estate property be given to a specific group of people (e.g., "all the children of my brother"). In that case, tangible personal property transferred from the deceased to one of their brother's children meets the conditions for exemption despite the child not being specifically named in the will.

The TPP itself also does not have to be specifically mentioned in the will (e.g., "all my property goes to my daughter Jane Jones"). If the TPP is transferred from the estate/deceased to Jane Jones, then the transfer is still exempt because the TPP is covered by the phrase "all my property".

Other specific situations:

The vehicle isn't specifically named in a will, and the executor is left to distribute the tangible personal property of the deceased as they see fit.

If the will specifies that the executor may distribute the estate property as they see fit, then the person who receives the property (at the direction of the executor) is eligible for the exemption.

A beneficiary is named, but that person doesn't want it so the vehicle is distributed/given to some other family member or person by the executor.

The beneficiary has a beneficial interest in the vehicle and if they decided to give it to another person, then the gift of the vehicle to that other person may be taxable under section 100 [tax on gift of vehicle, boat or aircraft given in British Columbia] of the Act unless the specific gift exemption applies. If the vehicle is transferred directly from the estate/deceased to the "other family member" (i.e., the transfer is inconsistent with the term of the will), then the transfer is taxable because the vehicle is not distributed as part of the estate.

A beneficiary is named and a vehicle is to be distributed to that person, but that person is too young to drive, is no longer driving, or is incapable of driving.

If a vehicle is given under a will to a person too young to drive or incapable of driving, the transfer to that person is still exempt. The exemption does not require that the recipient be able to utilize the vehicle. If the person incapable of driving then gives the vehicle to another person, that second transfer may be taxable under section 100 of the Act unless another exemption applies. If the vehicle is transferred from the estate/deceased person directly to a person other than the person incapable of driving (i.e., inconsistently with the terms of the will), then the transaction is taxable because the vehicle is not transferred as part of the distribution of a deceased's estate.

A person dies intestate (without a will) and the person who administrates determines who receives the vehicle.

The Ministry's understanding is that if a person dies without a will, then distribution of the estate assets is governed by the Part 10 of the Estate Administration Act and the distribution is not determined by the administrator of the estate. The person who receives the property under the rules in the Estate Administration Act is eligible for the exemption on a transfer of a vehicle to their name because, although there is no will, the vehicle is still "transferred as part of the distribution of a deceased individual's estate."

Division 6 — Tangible Personal Property Entering or Leaving British Columbia

Section 22 – New Resident’s Effects – Tangible Personal Property

PSTERR - SEC.22/Int.-R.2

References:

Act: Section 1 "boat", "entry date", "Excise Tax Act", "use", "vehicle"; Section 49; Section 50; Section 55

PSTERR: Section 57

PSTR: Section 24

Bulletin PST 306

Interpretation (Issued: 2014/02; Revised: 2014/09)

Effective February 19, 2014, B.C. Reg. 117/2014 amended PSTERR section 22 to replace a component of the original "settler's effects" (new resident's effects) rule with a basic rule that limits the settler's effects exemption to TPP that enters BC within 1 year of an individual becoming a resident. Prior to the amendment, the TPP had to enter BC within 6 months unless circumstances made it impractical for that to have occurred.

This amendment affected PSTERR paragraph 22(1)(b) only. The other conditions of the exemption were not changed. As a result, the exemption continues to require that the TPP be brought into BC for a non-business purpose and that it be owned for a continuous period of at least 30 days before the individual becomes a resident.

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 22 an exemption from tax for TPP brought into BC by a new resident in specified circumstances.

R.1 Moving To British Columbia Over A Period Of Time (Issued: 2014/07)

PSTERR paragraph 22(1)(b) limits the amount of time that a new resident may bring TPP into BC exempt from PST to one year from the date they become a resident of BC.

If an individual moves to BC over a period of time, such that they are living part-time in both their BC residence and their out-of-province residence during this period, then the date that they start residing in BC part-time is the date that the person becomes a resident of BC for the purpose of PSTERR paragraph 22(1)(b).

R.2 TPP Brought Into British Columbia Before Taking Up Residency (Issued: 2014/07)

The exemption under PSTERR section 22 applies to TPP that enters BC within one year of an individual becoming a resident of BC. The one year period can be applied before or after the individual becomes a resident. The following are examples of when the exemption applies to TPP brought into BC before the individual becomes a resident:

A future BC resident plans to travel extensively before taking up residence in BC. They send their household goods to BC to be stored while they are traveling. As long as the household goods enter BC no more than one year before the individual becomes a resident of BC, the exemption under PSTERR section 22 applies.
An individual who is a resident of Ontario attends a BC university. They bring their vehicle in when they start classes in September. In May of the following year, the individual becomes a resident of BC. Because their vehicle entered BC within one year of the individual becoming a resident, they may register their vehicle exempt from PST in accordance with PSTERR section 22.

Section 23 – Vehicle, Boat Or Aircraft Into British Columbia For Gift

PSTERR - SEC.23/Int.

References:

Act: Section 1 "BC resident", "boat", "Excise Tax Act", "vehicle"; Section 49; Section 51

PSTERR: Section 18; Section 19; Section 20; Section 24; Section 25; Section 26; Section 57

PSTR: Section 24

Bulletin PST 312

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 23 an exemption from tax for a vehicle, boat or aircraft brought into British Columbia by a person for the purpose of giving that vehicle, boat or aircraft to another person as a gift.

Subsection 23(1) provides that subject to PSTERR subsections 23(2) and 23(3), a person who is a BC resident is exempt from tax imposed under section 49 [tangible personal property brought into British Columbia for use] of the Act in respect of a vehicle, a boat or an aircraft if the person brings or sends into British Columbia, or receives delivery of in British Columbia, the vehicle, boat or aircraft solely for the purpose of giving that vehicle, boat or aircraft to another person as a gift.

Subsection 23(2) provides that the exemption under PSTERR subsection 23(1) applies to a person in respect of a vehicle, a boat or an aircraft only if the person

(a) previously paid tax under the Act, the Consumption Tax Rebate and Transition Act or the Social Service Tax Act in respect of the vehicle, boat or aircraft and has not obtained and is not entitled to obtain, under those Acts, a refund of that tax,

(b) previously paid tax under section 165(2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act in respect of the vehicle, boat or aircraft and has not obtained and is not entitled to obtain, under Part IX of that Act, a refund of or a credit or rebate for that tax,

(c) previously paid sales tax in respect of the vehicle, boat or aircraft to another province and has not obtained and is not entitled to obtain a refund of or a credit or rebate for that sales tax,

(d) received, before April 1, 2013, the vehicle, boat or aircraft as a gift in British Columbia, or

(e) was exempt, when that person obtained the vehicle, boat or aircraft, from tax

(i) under the Consumption Tax Rebate and Transition Act or the Social Service Tax Act, or

(ii) under the Act, other than under any of the following provisions of the PSTERR:

section 24 [vehicle purchased for use outside British Columbia];
section 25 [aircraft purchased for use outside British Columbia];
section 26 [tangible personal property shipped outside of British Columbia].

Subsection 23(3) provides that the exemption under PSTERR subsection 23(1) does not apply to a person in respect of a vehicle, a boat or an aircraft if

(a) the person previously paid tax in respect of the vehicle, boat or aircraft only under one or both of section 51 [tangible personal property brought into British Columbia for temporary use] of the Act and section 12 [calculation of tax if use in British Columbia temporary] of the Social Service Tax Act, and

(b) the total amount of tax referred to in PSTERR paragraph 23(3)(a) is less than the amount of tax that, but for PSTERR subsection 23(1), would be payable by the person under section 49 of the Act in respect of the vehicle, boat or aircraft.

Section 24 – Vehicle Purchased For Use Outside British Columbia

PSTERR - SEC.24/Int.

References:

Act: Section 1 "collector", "director", "multijurisdictional vehicle", "trailer", "use", "vehicle", "vehicle registration legislation"; Section 37; Section 145

PSTERR: Section 18; Section 19; Section 20; Section 23; Section 57; Section 126

PSTR: Section 24

Bulletin PST 312

Interpretation (Issued: 2014/02; Revised: 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends PSTERR subsection 24(4) to replace “a form acceptable to the director” with “a form specified by the director.” The director has specified that the form that must be used to claim the exemption is a Certificate of Exemption – Purchase of a Vehicle or Aircraft for Use Outside BC (FIN 440).

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 24 an exemption from tax for vehicles purchased in British Columbia for use outside British Columbia in specified circumstances.

Subsection 24(1) provides that in PSTERR section 24, "qualifying vehicle" means a vehicle that is registrable under the vehicle registration legislation, but does not include a multijurisdictional vehicle or a trailer that is used with a multijurisdictional vehicle.

Subsection 24(2) provides that a qualifying vehicle is exempt from tax imposed under section 37 [tax on purchase of tangible personal property] of the Act if the qualifying vehicle

(a) is purchased by

(i) a person other than an individual, or

(ii) an individual who does not reside or ordinarily reside in British Columbia,

(b) is purchased for use primarily outside British Columbia,

(d) will not be registered under the vehicle registration legislation.

Subsection 24(3) provides that PSTERR subsection 24(2) is prescribed for the purposes of paragraph 145(1)(a) [provisions providing exemptions in relation to tangible personal property] of the Act.

Subsection 24(4) provides that for the purposes of paragraph 145(1.1)(a) [evidence required to claim certain exemptions in relation to tangible personal property or software] of the Act, in relation to a person who alleges that a qualifying vehicle is exempt under PSTERR subsection 24(2), the collector is required to obtain a declaration in a form acceptable to the director (a Certificate of Exemption – Purchase of a Vehicle or Aircraft for Use Outside BC (FIN 440)).

Section 25 – Aircraft Purchased For Use Outside British Columbia

PSTERR - SEC.25/Int.

References:

Act: Section 1 "collector", "director", "use"; Section 37; Section 145

PSTERR: Section 18; Section 19; Section 20; Section 23; Section 57; Section 126

PSTR: Section 24

Bulletin PST 134

Interpretation (Issued: 2014/02; Revised: 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends PSTERR subsection 25(3) to replace “a form acceptable to the director” with “a form specified by the director.” The director has specified that the form that must be used to claim the exemption is a Certificate of Exemption – Purchase of a Vehicle or Aircraft for Use Outside BC (FIN 440).

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 25 an exemption from tax for aircraft purchased in British Columbia for use outside British Columbia in specified circumstances.

Subsection 25(1) provides that an aircraft is exempt from tax imposed under section 37 [tax on purchase of tangible personal property] of the Act if the aircraft

(a) is purchased by

(i) a person other than an individual, or

(ii) an individual who does not reside or ordinarily reside in British Columbia,

(b) is purchased for use primarily outside British Columbia, and

Subsection 25(2) provides that PSTERR subsection 25(1) is prescribed for the purposes of paragraph 145(1)(a) [provisions providing exemptions in relation to tangible personal property] of the Act.

Subsection 25(3) provides that for the purposes of paragraph 145(1.1)(a) [evidence required to claim certain exemptions in relation to tangible personal property or software] of the Act, in relation to a person who alleges that an aircraft is exempt under PSTERR subsection 25(1), the collector is required to obtain a declaration in a form acceptable to the director (a Certificate of Exemption – Purchase of a Vehicle or Aircraft for Use Outside BC (FIN 440)).

Section 26 – Tangible Personal Property Shipped Outside British Columbia

PSTERR - SEC.26/Int.-R.1

References:

Act: Section 1 "purchaser", "sale", "use"; Part 3; Section 145

PSTERR: Section 18; Section 19; Section 20; Section 23; Section 57; Section 126

PSTR: Section 24

Bulletin PST 309

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 26 an exemption from tax for tangible personal property purchased in British Columbia and shipped by the seller outside British Columbia.

Subsection 26(1) provides that a purchaser who purchases tangible personal property at a sale in British Columbia is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act if

(a) the tangible personal property is to be shipped by the seller for delivery outside British Columbia, and

(b) no use is to be made of the tangible personal property by the purchaser while the tangible personal property is in British Columbia other than storage of the tangible personal property with the seller.

Subsection 26(2) provides that PSTERR subsection 26(1) is prescribed for the purposes of paragraph 145(1)(a) [provisions providing exemptions in relation to tangible personal property] of the Act.

R.1 TPP Shipped Outside BC By Shipping Companies (Issued: 2014/04)

To qualify for exemption under PSTERR section 26, TPP purchased in the province for use outside BC must be shipped by the seller, or by a shipping company under contract to the seller, to a location outside BC.

If the purchaser arranges for the seller to deliver the TPP to a shipping company located in BC that is under contract to the purchaser, the purchase is subject to tax. In this situation, title to the TPP transfers to the purchaser in BC when the seller delivers the TPP to the shipping company under contract to the purchaser. The definition of "use" includes "the exercise of any right or power over TPP incidental to the ownership of it". By arranging for the TPP to be shipped by a separate shipping company, the customer has taken title to and "used" the TPP in BC by exercising that right and power over the TPP. Thus, the customer is liable for the tax as the purchaser of the TPP.

Division 7 — Fuel, Energy and Energy Conservation

Section 27 – Fuel For Use As A Source Of Energy

PSTERR - SEC.27/Int.

References:

Act: Section 1 "use"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "obtain"

PSTR: Section 24

Bulletin PST 203

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

Effective November 1, 2016, B.C. Reg. 218/2016 amends PSTERR paragraph 27(1)(a) by removing the words “B.C. Reg. 302/94,” to reflect the updated Solid Fuel Burning Domestic Appliance Regulation.

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 27 exemptions from tax for pelletized fuel, manufactured firelogs, barbeque briquettes and, if obtained for use as a source of energy, wood and charcoal.

Subsection 27(1) provides that the following are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act:

(a) pelletized fuel, as defined in the Solid Fuel Burning Domestic Appliance Regulation, B.C. Reg. 302/94;

(b) manufactured firelogs;

Subsection 27(2) provides that wood and charcoal are exempt from tax imposed under Part 3 of the Act, other than Division 9 [Change in Use], if obtained for use as a source of energy.

Section 28 – Residential Energy Products

PSTERR - SEC.28/Int.

References:

Act: Part 3; Part 3 – Division 9; Part 3 – Division 11

PSTERR: Section 1 "obtain", "residential energy product", "residential dwelling", "residential use"

PSTR: Section 24

Bulletin PST 203

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 28 an exemption from tax for residential energy products.

Subsection 28(1) provides that a residential energy product is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use] and Division 11 [Energy Products], if

(a) the residential energy product is obtained solely for residential use in a residential dwelling,

(b) the seller of the residential energy product delivers or provides the residential energy product to

(i) a residential dwelling,

(ii) a building that contains a residential dwelling, or

(iii) a storage tank or facility located at and connected to a residential dwelling, and

(c) in the case of a delivery or provision of a residential energy product to a residential dwelling that is part of a multi-use building, the seller delivers or provides the residential energy product to a storage tank or facility, or through a meter, that services only the part of the building that is used only for residential use.

Section 29 – Electricity For Residential And Farm Use

PSTERR - SEC.29/Int.

References:

Act: Section 1 "collector", "director", "use"; Part 3; Part 3 – Division 9; Section 145

PSTERR: Section 1 "obtain", "qualifying farmer", "residential dwelling", "residential use"

PSTR: Section 24

Bulletin PST 101

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 29 an exemption from tax for electricity obtained by a qualifying farmer for residential and farm use.

Subsection 29(1) provides that electricity is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use], if

(a) the electricity is obtained by a qualifying farmer for use only for

(i) residential use in a residential dwelling, and

(ii) a farm purpose, and

(b) the seller of the electricity provides the electricity for both purposes described in PSTERR paragraph 29(1)(a) through the same meter.

Subsection 29(2) provides that PSTERR subsection 29(1) is prescribed for the purposes of paragraph 145(1)(a) [provisions providing exemptions in relation to tangible personal property] of the Act.

Subsection 29(3) provides that for the purposes of subsection 145(1.1) [evidence required to claim certain exemptions in relation to tangible personal property or software] of the Act, in relation to a person who alleges that electricity is exempt under PSTERR subsection 29(1), the collector is required to obtain

(a) the name, address, card number and expiry date as recorded on a BC Farmer Identity Card issued to that person by the BC Agriculture Council, or

(b) a declaration in a form acceptable to the director (a Certificate of Exemption – Farmer (form FIN 458)).

Section 29.1 – Continuous Supply Of Tangible Personal Property As Part Of Use Of Real Property Or Moorage Facilities

PSTERR - SEC.29.1/Int.-R.1

References:

Act: Section 1 "purchaser", "use"; Part 3

PSTERR: Section 1 "obtain"

PSTR: Section 24

Interpretation (Issued: 2014/02)

Effective April 1, 2013, OIC 195/2013 added PSTERR section 29.1.

PSTERR section 29.1 provides that tangible personal property is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act if

(a) the tangible personal property is purchased from a seller under a contract that has as its fundamental and overriding objective the right to use real property or moorage facilities and not the purchase of the tangible personal property,

(b) the seller delivers the tangible personal property or makes the tangible personal property available to the purchaser on a continuous basis by means of a wire, pipeline or other conduit,

(d) the seller of the tangible personal property obtained the tangible personal property from another person for a purpose other than for the sole purpose of resale.

R.1 Taxable And Exempt Scenarios - Electricity Or Other TPP Supplied With Use Of Real Property Or Moorage Facilities (Issued: 2014/07)

Owners and operators of land, buildings, and moorage facilities sometimes offer others the right to use real property or moorage facilities. In some cases, persons who obtain a right to use real property or moorage facilities are also able to purchase electricity or other TPP (e.g., natural gas) from the person providing that right. For example:

Moorage customers may purchase electricity from a marina operator
Campers in an RV park or a campground may purchase electricity from the park operator
Exhibitors at a trade show may purchase electricity from an arena operator
A telecommunication service provider may lease rooftop space on a building for a cellular antenna, and purchases electricity from the building owner
A retail store leases space in a shopping mall and purchases electricity from the operator of the mall
A restaurant leases space in a shopping mall food court and purchases natural gas from the operator of the mall

PSTERR section 29.1 provides for an exemption from PST on certain supplies of TPP (in practical terms, energy) that are provided with a right to use real property or moorage facilities. The exemption applies if all of the conditions in PSTERR paragraphs 29.1(a) through (d) are met. The following scenarios show how sales of electricity in a marina may be exempt or taxable, respectively:

Exempt (moorage customer does not pay PST)

A person purchases moorage for $100 and the right to use electricity for $35 per day. The electricity is obtained by connecting to a power outlet at the moorage facility. The marina has only one electrical meter, which aggregates all of the electricity consumed for the marina's own use and by boats using the moorage facility. Note that all of the conditions in PSTERR paragraphs 29.1(a) through (d) are met. As a result, the charge for the electricity is exempt from PST.

Taxable (moorage customer pays PST on the electricity)

A person purchases moorage for $100 and the right to use electricity for $35 per day. The marina has two electrical meters: one which measures electricity consumed for the marina's own use and another which aggregates all of the electricity used by boats using the moorage facility. The condition in PSTERR paragraph 29.1(c) is not met. (Note that it is not necessary that each boat's electricity consumption be metered on an individual basis-so long as the electricity is delivered or provided through a meter that separates the marina's own consumption from the marina's customers' consumption, PST applies.) The charge for the electricity is subject to PST.
A person purchases moorage for $100 and electricity is purchased by the kilowatt hour. The marina has individual electrical meters for each boat. The condition in PSTERR paragraph 29.1(c) is not met. The charge for the electricity is subject to PST.

If a provider of a right to use real property or moorage facilities sells electricity under conditions where the PSTERR section 29.1 exemption does not apply, they may apply to the director for a refund of the PST paid on their initial purchase of the electricity that was ultimately resold.

Section 30 – Energy Conservation

PSTERR - SEC.30/Int.

References:

Act: Section 1 "motor vehicle", "use"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "obtain"

PSTR: Section 24

Bulletin PST 203

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 30 that the following tangible personal property is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use], if the tangible personal property is obtained for use to conserve energy:

(a) thermal insulation material that is

(i) a batt, a blanket, a roll, a panel, loose fill or cellular plastic material, and

(ii) designed primarily to prevent heat loss from a building,

but not including vapour barrier or any other material incorporated into or attached to a building and serving a structural or decorative function;

(b) polystyrene forming blocks designed

(i) for use initially as a form for concrete, and

(ii) to remain permanently attached to the concrete to serve as the primary insulation for the completed building to prevent heat loss from the building;

(c) fastening components specifically designed for use with polystyrene forming blocks described in PSTERR paragraph 30(b);

(d) chemicals obtained for use to make spray polyurethane foam insulation designed primarily to prevent heat loss from a building;

(e) window insulating systems, consisting of a transparent or translucent film and including frames or integral parts of the systems, installed in an existing window and designed primarily to retain heat in a building by absorbing solar heat or reducing drafts;

(f) weather stripping and caulking materials designed to prevent heat loss from a building;

(g) insulation, other than tapes and sealants, designed to prevent the transfer of heat to or from hot water tanks, hot or cold water pipes or ductwork;

(h) wind-powered generating equipment specifically designed to produce mechanical or electrical energy;

(i) generators, controllers, wiring and devices that convert direct current into alternating current, if they are obtained together with and as part of wind-powered generating equipment described in PSTERR paragraph 30(h);

(j) solar photovoltaic collector panels;

(k) controllers, wiring and devices that convert direct current into alternating current, if they are obtained together with and as part of a system that includes solar photovoltaic collector panels;

(l) solar thermal collector panels;

(m) wiring, pumps, tubing and heat exchangers, if they are obtained together with and as part of a system that includes solar thermal collector panels;

(n) micro-hydro turbines and generators designed to produce up to 150 kW of mechanical or electrical energy;

(o) controllers, wiring, tubing and devices that convert direct current into alternating current, if they are obtained together with and as part of a system that includes micro-hydro turbines or generators described in PSTERR paragraph 30(n);

(p) equipment specifically designed to produce mechanical or electrical energy from ocean tides, currents or waves;

(q) the following, if obtained together with and as part of a system that includes equipment described in PSTERR paragraph 30(p):

(i) generators, wiring, controllers, monitors, pumps, tubing, floats, water fences and devices that convert direct current into alternating current;

(ii) aids to navigation as defined in section 125 of the Canada Shipping Act, 2001;

(r) natural gas and propane conversion kits for internal combustion engines;

(s) kits to convert motor vehicles to operate solely on electricity;

(t) the following, if designed to reduce wind-resistance and improve fuel efficiency:

(i) tractor-trailer gap fairings;

(ii) trailer side skirts;

(iii) aerodynamic bumpers;

(iv) tank skirts;

(v) tractor roof fairings;

(vi) base flaps;

(vii) boat tails.

PSTERR - SEC.30(A)/R.1-R.2

(a) Thermal Insulation Material

R.1 Thermal Insulation Material That Serves Multiple Purposes (Issued: 2014/04)

While thermal insulation material can have multiple purposes (e.g., noise reduction, the prevention of the spread of fire, etc.), to qualify for the exemption under PSTERR paragraph 30(a), they must be designed primarily to prevent heat loss from a building.

R.2 Wall Systems Containing Exempt Insulation Materials (Issued: 2014/04)

Thermal insulation materials are exempt if they are not incorporated into a wall system before purchase. However, if they are component of a wall system sold as a manufactured product, the wall system is subject to PST on the full purchase price. The product being sold is a wall, not the components of the product. Wall systems serve a structural function and do not qualify for the exemption under PSTERR paragraph 30(a).

PSTERR - SEC.30(B)/R.1

(b) Polystyrene Forming Blocks

R.1 Steel Reinforcing Bars (Issued: 2014/04)

Steel reinforcing bars are not eligible for the exemption under PSTERR paragraph 30(b) even if they are sold with polystyrene forming blocks as a package. The purpose of such bars is to reinforce the concrete. They do not form part of the primary insulating system for the completed building.

PSTERR - SEC.30(J)/R.1

(j) Solar Photovoltaic Collector Panels

R.1 Solar Powered Outdoor Lighting Systems (Issued: 2014/04)

Solar powered outdoor lighting systems do not qualify for the exemptions provided under PSTERR paragraphs 30(j)-(m). These systems use sunlight to collect the energy required to turn on an outdoor light system. Sunlight is converted into electrical energy in a solar panel and stored in a battery.

These systems do not qualify just because they are lighting systems that are solar powered.

Note: Solar panels themselves qualify under PSTERR paragraphs 30(j) or 30(l). This does not include panels that are incorporated into the lighting fixtures themselves.

PSTERR - SEC.30(R)/R.1

(r) Conversion Kits

R.1 Railway Locomotive Conversions (Issued: 2014/04)

Natural gas and propane conversion kits that are designed for internal combustion engines on railway locomotives qualify for exemption under PSTERR paragraph 30(r).

Section 31 – Tangible Personal Property For Use For Hydroelectric Power Generation

PSTERR - SEC.31/Int.

References:

Act: Section 1 "apparatus", "collector", "director", "registration number", "use"; Part 3; Part 3 – Division 9; Section 145

PSTERR: Section 1 "obtain"; Schedule 1

PSTR: Section 24; Section 86

Bulletin PST 211

Interpretation (Issued: 2014/02; Revised: 2023/10, 2024/09)

Effective June 17,2024, B.C. Reg. 137/2024 amends PSTERR subsection 31(3) to replace “a form acceptable to the director” with “a form specified by the director.” The director has specified that the form that must be used to claim the exemption is a Certificate of Exemption – General (FIN 490).

Effective February 29, 2016, B.C. Reg. 41/2016 updates PSTERR paragraph 31(1)(c) to reference the Water Sustainability Act, the current legislation.

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 31 an exemption from tax for specified tangible personal property for use for hydroelectric power generation.

Subsection 31(1) provides that tangible personal property described in PSTERR Schedule 1 [Tangible Personal Property for Hydroelectric Power Generation] is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use], if the tangible personal property is

(a) manufactured machinery, equipment or apparatus,

(b) obtained for use

(i) as penstock intake or diversion equipment, at the point of diversion from the water source, or

(ii) as penstock pipe, to provide water from the point of diversion from the water source to a hydroelectric power plant, and

Subsection 31(2) provides that PSTERR subsection 31(1) is prescribed for the purposes of paragraph 145(1)(a) [provisions providing exemptions in relation to tangible personal property] of the Act.

Subsection 31(3) provides that for the purposes of subsection 145(1.1) [evidence required to claim certain exemptions in relation to tangible personal property or software] of the Act, in relation to a person who alleges that tangible personal property is exempt under PSTERR subsection 31(1), the collector is required to obtain

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director (a Certificate of Exemption – General (FIN 490)).

Division 8 — Safety Equipment and Apparel

Section 32 – Work-Related Safety Equipment

PSTERR - SEC.32/Int.

References:

Act: Part 3

PSTERR: Section 1 "obtain"; Section 57

PSTR: Section 24

Bulletin PST 100

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 32 exemptions from tax for specified work-related safety equipment designed to be worn by a worker.

Subsection 32(1) provides that the following work-related safety equipment designed to be worn by a worker is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act:

(a) safety glasses, safety goggles, face shields and welding helmets;

(b) respirators that offer protection from dust, toxic gases and vapours, including protection canisters;

(d) hearing protectors, including ear down, ear plugs and ear muffs;

(e) safety caps, hard hats and helmets, but not including optional weather liners, skull caps, hairnets or sweatbands;

(f) gloves with built-in safety features such as reinforced thumbs, palms or cuffs, designed to protect the wearer from physical harm, including traffic safety gloves to enhance visibility, but not including dress gloves, general purpose gloves and gloves designed primarily to protect the wearer from natural elements;

(g) footwear with built-in safety features such as safety toes, loggers' caulks or acid resistance, but not including footwear designed solely for protection against the weather;

(h) metatarsal protectors, puncture-resistant insoles, toe clips, shin guards, foot guards, skid-masters and ice cleats;

(i) personal intercom systems designed to allow safe, hands-free communication while working in confined or hazardous environments.

Subsection 32(2) provides that an air hose designed to connect a respirator described in PSTERR paragraph 32(1)(b) to an air source, if the air hose is obtained together with the respirator, is exempt from tax imposed under Part 3 of the Act.

PSTERR - SEC.32(1)(A)/R.1-R.2

(1)(a) Safety Glasses, Safety Goggles, Face Shields and Welding Helmets

R.1 Surgical And Dental Masks (Issued: 2014/07)

Paper or cloth masks used by surgeons, dentists, and other health care workers do not qualify for the exemption provided under PSTERR paragraph 32(1)(a) for face shields. These items are primarily intended to protect patients during surgery and other invasive procedures form airborne contagion originating with the worker. Although these masks do, to a degree, protect the wearer in some circumstances, this is not their primary purpose.

Surgical and dental masks may be exempt under PSTERR section 33 [equipment and apparel for specific purpose].

R.2 CPR Microshield Rescue Breathers (Issued: 2014/07)

CPR Microshield Rescue Breathers are disposable, one-way valves fitted into a rigid plastic tube surrounded by 25 square inches of clear vinyl. It prevents the victim's secretions from coming into contact with the rescuer's face, thereby qualifying as a face shield and the exemption provided under PSTERR paragraph 32(1)(a).

Section 33 – Equipment And Apparel For Specific Purpose

PSTERR - SEC.33/Int.

References:

Act: Section 1 "collector", "director", "registration number", "use"; Part 3; Section 145

PSTERR: Section 1 "obtain"

PSTR: Section 24; Section 86

Bulletin PST 100

Interpretation (Issued: 2014/02; Revised: 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends PSTERR subsection 33(4) to replace “a form acceptable to the director” with “a form specified by the director.” The director has specified that the form that must be used to claim the exemption is a Certificate of Exemption – General (FIN 490).

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 33 an exemption from tax for specified work-related safety equipment and apparel.

Subsection 33(1) provides that subject to PSTERR subsection 33(2), work-related safety equipment and apparel designed to be worn by or attached to a worker is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, if the work-related safety equipment or apparel is obtained by

(a) an employer for use by the employer's employees in the course of their employment,

(b) a person who is self-employed for the person's own use in the course of self-employment, or

(c) an educational institution for the use of students who are enrolled in educational programs provided by that institution.

Subsection 33(2) provides that the exemption under PSTERR subsection 33(1) applies to work-related safety equipment or apparel obtained by

(a) an employer referred to in PSTERR paragraph 33(1)(a), if the work-related safety equipment or apparel is obtained for the purpose of complying with

(i) the Occupational Health and Safety Regulation, B.C. Reg. 296/97, or

(ii) the Health, Safety and Reclamation Code for Mines in British Columbia established under the Mines Act, or

(b) a person referred to in PSTERR paragraph 33(1)(b) or an educational institution referred to in PSTERR paragraph 33(1)(c), if the person or institution would have been required to obtain the work-related safety equipment or apparel for the purpose referred to in PSTERR paragraph 33(2)(a) had the person or institution been an employer.

Subsection 33(3) provides that PSTERR subsection 33(1) is prescribed for the purposes of paragraph 145(1)(a) [provisions providing exemptions in relation to tangible personal property] of the Act.

Subsection 33(4) provides that for the purposes of subsection 145(1.1) [evidence required to claim certain exemptions in relation to tangible personal property or software] of the Act, in relation to a person who alleges that tangible personal property is exempt under PSTERR subsection 33(1), the collector is required to obtain

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director (a Certificate of Exemption – General (FIN 490)).

Section 34 – Marine Safety Equipment

PSTERR - SEC.34/Int.

References:

Act: Section 1 "boat", "use"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "obtain"

PSTR: Section 3; Section 24

Bulletin PST 100

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 34 exemptions from tax for specified marine safety equipment.

Subsection 34(1) provides that the following are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act:

(a) floater coats;

(b) inflatable life rafts that meet the requirements of the Life Saving Equipment Regulations under the Canada Shipping Act, 2001 for inflatable life rafts, and repair kits for those rafts;

(d) life-saving buoys and flags;

(e) life-saving cushions;

(f) life-saving throw rings;

(g) marine survival suits.

Subsection 34(2) provides that distress flares are exempt from tax imposed under Part 3 of the Act, other than Division 9 [Change in Use], if obtained for use on a boat to draw attention to the boat when the boat is in distress.

PSTERR - SEC.34(1)(B)/R.1-R.2

(1)(b) Inflatable Lift Rafts and Repair Kits

R.1 Emergency Life Saving Rafts (Issued: 2014/07)

PSTERR paragraph 34(1)(b) exempts inflatable life rafts that meet the requirements of the Life Saving Equipment Regulations under the Canada Shipping Act, 2001 for inflatable life rafts, and repair kits for those rafts.

To qualify for the exemption, the inflatable life raft must:

be constructed so it is capable of withstanding exposure for 30 days afloat in any sea condition,
inflate in 1 to 3 minutes (depending on temperature) after activation of inflation mechanism,
have a canopy to protect the persons inside that is permanently erected or automatically set in place when the life raft is launched and is floating, and
have a means of collecting rain water.

Note: Other requirements also apply.

Zodiac-type boats do not qualify as emergency life saving rafts because they do not meet these requirements. Zodiac-type boats have rigid fibreglass hulls with large inflatable tubes running along the sides and meeting at the bow.

R.2 Repair Kits For Life Rafts (Issued: 2014/07)

The Life Saving Equipment Regulations require that life rafts have a repair kit on board for repairing punctures. A life raft repair kit generally consists of scissors, a tube of glue or adhesive, solvent, sand paper and a piece of rubber cloth or fabric.

Section 35 – Safety Equipment And Apparel

PSTERR - SEC.35/Int.

References:

Act: Section 1 "apparatus", "purchase price", "use"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "obtain", "residential dwelling"

PSTR: Section 24

Bulletin PST 100

Interpretation (Issued: 2014/02; Revised 2018/11)

Effective April 1, 2018, B.C. Reg. 54/2018 expanded the exemption provided under PSTERR to include all avalanche airbag backpacks. Previously, only avalanche airbags triggered by compressed air were exempt. However, avalanche airbag systems that use a rechargeable battery and fan system instead of a gas cartridge to inflate the airbag have been developed and are currently on the market. Under the previous wording, battery and fan powered avalanche airbags would not be exempt from PST despite performing the same function as avalanche airbags powered by gas cartridges.

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 35 exemptions from tax for specified safety equipment and apparel.

PSTERR - SEC.35(1)(H)/R.1

(1)(h) Portable Fire Extinguishers and Refills

R.1 Items That Qualify Or Do Not Qualify As Portable Fire Extinguishers (Issued: 2014/07)

Wheel-mounted fire extinguishers: Wheel-mounted fire extinguishers that are designed to be moved around and operated by one person qualify for exemption as portable fire extinguishers under PSTERR paragraph 35(1)(h). These extinguishers are similar to conventional hand-held portable fire extinguishers except that they are larger and heavier and are therefore mounted on wheels so that they can be moved about. The wording of the regulation does not restrict the exemption to fire extinguishers that can be readily carried by a person.

Commercial Kitchen Stove Hood Extinguishers: Extinguisher tanks that form part of a commercial kitchen stove hood fire suppression system do not qualify for exemption as portable fire extinguishers. The extinguisher tanks are strapped to the wall of the building and are attached to the control head and piping.

Fire Trucks: Although fire trucks are equipped with specialized equipment designed to extinguish fires, and they have wheels allowing them to be moved from location to location, fire trucks are not eligible for exemption as portable fire extinguishers.

The legislation does not define a portable fire extinguisher; therefore the scope of the exemption is determined by applying the common and ordinary meaning of the term and the intent of the legislation. Fire trucks are not eligible for this exemption because they are not commonly thought of, or referred to, as portable fire extinguishers. Rather, they are specialized motor vehicles designed to carry both fire-fighting personnel and equipment, which may include ladders, ropes, axes, resuscitators, cutting torches, walkie-talkies, radios and other items, along with fire extinguishing devices. The ordinary meaning of a fire truck is an automotive vehicle equipped with fire-fighting apparatus.

The ordinary meaning of a fire extinguisher is an apparatus for putting out fires by ejecting fire extinguishing agents. While a fire truck is equipped with fire extinguishing apparatus, it is also equipped with other rescue and communications equipment and is designed to transport personnel. As such, a fire truck is not simply just a larger version of a fire extinguisher.

Further, even though the vehicle's engine provides a power source for the on-board pumping equipment, it is primarily designed to propel the fire truck as a vehicle. As a vehicle, a fire truck is more properly characterized as being mobile rather than portable. The ordinary meaning of portable is defined as capable of being carried; easily or conveniently transported; or light and manageable enough to be readily moved.

Mobile means capable of moving or being moved from one place to another, and includes something designed as a vehicle or mounted on a vehicle.

PSTERR - SEC.35(1)(J)/R.1

(1)(j) Gas Detection Monitors

R.1 Gas Detection Monitors (Issued: 2014/07)

Gas detection monitors that monitor for gas on a continuous basis are exempt from tax under PSTERR paragraph 35(1)(j).

Gas detection monitors perform a function similar to that of a smoke or fire alarm. For example, gas detection monitors worn by workers in the mining and oil industries to monitor unsafe gases sound an alarm when unsafe levels of those gases are detected.

The regulation does not place any specific limitations on the exemption, such as the size of monitors, the type of gases the monitor measures, whether the monitor is fixed or portable, or whether or not it is to be used in the work place.

Methods used in gas detection monitoring to detect gas include the following.

Flame ionization

Photoionization

Gas chromatography

VV-VIS photometry

Infrared spectrometry

Items that qualify for the exemption include the following.

Continuous sensors using electronic circuitry or electrochemical means to measure gases.
"Detector badges" - monitor continuously and provide a warning if gas levels get high. Can be worn.
Fixed carbon monoxide detectors that monitor continuously and provide an audible warning of danger (in a similar manner as smoke detectors).
Personal continuous sensors using regular or rechargeable batteries made up of sensor, alarm and often earplug.
Warning devices for explosion hazards (provided that they monitor continuously).

Items that do not qualify for exemption include the following:

Air testing equipment used to measure gas concentrations in air, but which do not provide continuous monitoring.
"Detector pumps" used to draw a defined quantity of air through a detector tube. These are not exempt because they are used for periodic testing rather than continuous monitoring.
"Detector tubes" - vials used at the test site which contain a chemical preparation which reacts with the gas to be measured by changing colour. Some tubes require pumps to collect air samples, other tubes absorb gas molecules passively. These are used for periodic testing rather than continuous monitoring.
Air quality monitors.

PSTERR - SEC.35(2)(B)/R.1

(2)(b) Oxygen, Oxygen Containers, and Oxygen Dispensing Apparatus

R.1 Oxygen Containers And Oxygen Dispensing Apparatus (Issued: 2014/07)

Whether an item qualifies as either an oxygen container or an oxygen dispensing apparatus obtained for medical or emergency use is determined by its prime functionally or purpose. Oxygen containers are containers with the primary purpose of containing oxygen for storage purposes or for feeding into dispensing units. An oxygen dispensing apparatus is a dispenser which ensures that a patient has a continuous and sufficient flow of oxygen to assist in breathing.

Division 9 — Industrial and Commercial Items

Section 36 – Mining Supplies

PSTERR - SEC.36/Int.

References:

Act: Section 1 "use"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "mineral", "obtain"

PSTR: Section 24

Bulletin PST 111

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 36 exemptions from tax for specified explosive supplies, and for balls, rods and similar detached media used in the extraction of minerals from ore.

Subsection 36(1) provides that in PSTERR section 36, "explosive supplies" means blasting agents, blasting supplies and blasting accessories, including blasting caps, boosters, plastic cap holders, electric starters, squibs, shunt connectors, safety fuse assemblies, igniter cord connectors, hot wire lighters, detonator cord connectors and closing tubes.

Subsection 36(2) provides that explosive supplies are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use], if obtained for use in

(a) mineral exploration, extraction or processing, or

(b) the development of a mine other than construction of an access road to a mine.

Subsection 36(3) provides that balls, rods and similar detached media obtained for use in the grinding of ore in the process of extracting minerals from ore are exempt from tax imposed under Part 3 of the Act, other than Division 9.

PSTERR - SEC.36(1)/R.1-R.2

(1) Explosive Supplies

R.1 Explosive Supplies (Issued: 2014/04)

The following is a descriptive list of TPP that qualifies for exemption provided the criteria under PSTERR section 36 are met. This is not a complete list.

Birdies: plastic plugs, similar in design to feathered badminton birds, that are placed down the drill hole to position the explosive, e.g., to place the charge at the 10' level of a 20' hole.
Blasthole plugs: plugs placed down the blast hole to keep out debris and direct the charge downward and sideways.
Borehole or blasthole liners: like giant polyethylene socks, liners are placed in drilled holes containing water to keep explosives dry as long as possible.
Centralizer plugs and cap holders: hold blasting caps in the centre of the borehole.
Connectors: plastic bi-directional units that consist of a length of shock tube with a detonator crimped to each end. These provide millisecond delay intervals along the detonating cords. This allows for many explosions to occur at slightly different times, increasing the effectiveness of the blast. Common brands of connectors include: Nonel, Ignitor, and Primacord.
Detonators: detonators initiate explosions. Squibs and blasting caps (including electric) produce small explosions that used to detonate larger explosions.
Detonating cord: electric and non-electric cords used to transmit the energy which initiates the explosions. Electric cords are usually copper or iron wire and can include duplex copper wire. Non-electric cords are made of a core of powdered explosive enclosed in textile and plastic coverings. Common brands of detonating cord include: Primacord, B-Line, E-Cord, Scuf-flex, Ignitor.
Explosives and Components: compounds which, on their own or combined, explode producing an expansive force sufficient to break apart rock formations. Examples include: dynamite, ammonium nitrate (explosive when mixed with diesel fuel), neutral oil, furnace oil, or diesel fuel when used to make explosives, Powerfrac, Cor-Det 3, Anfo, Amex, Nilite, Superan, Powergel, Magnafrac, Hydromex T-3, Emulsion, Procore Boosters.

R.2 TPP That Does Not Meet The Definition Of Explosive Supplies (Issued: 2014/04)

This list describes TPP that are not explosive supplies under PSTERR section 36.

Bit or chuck adaptors: allows larger bits to be attached to smaller rods.
Cables, chains, ropes, and cable pullers (tools to tighten cables).
Cross-over subs (X-over subs): an adapter to connect a drill bit to the drill stem.
Drill rods, and drill rod couplers: lengths of steel rods to which drill bits are attached. Couplers join rods together.
Hoses: various uses including filling holes with emulsion.
Knock-off blocks: used to knock off drill bits.
Margot plugs: similar to safety plugs with the exception that a Margot plug is three to four feet in length, has an expandable rubber collar, and a hollow core. Valves can be attached to the plug to allow the controlled extraction of fluids.
Powder punch: used to stab powder bags exposing the explosive in preparation for loading into holes.
Power supply converters: convert power from source type to type used to detonate explosives.

Safety plug: aluminum plugs having "dogs" that, when inserted down a hole, grip the sides of the drill hole prevent any water accumulated from an underground stream to escape.

PSTERR - SEC.36(3)/R.1

(3) Balls, Rods and Similar Detached Media

R.1 Centrifugal Mineral Concentrator (Issued: 2014/04)

A centrifugal mineral concentrator does not qualify for exemption as a detached media obtained for use in the grinding of ore. A centrifugal mineral concentrator is used to recover very fine ore particles by using a high gradient centrifugal field to separate materials which have a high specific gravity. This process does not make use of a grinding media to physically extract the minerals from the ore.

Note that a centrifugal mineral concentrator may qualify for exemption as production machinery and equipment obtained for use in the extraction or processing of minerals under PSTERR section 97 [extraction or processing of minerals].

Section 37 – Boomsticks And Used Boom Gear

PSTERR - SEC.37/Int.-R.1

References:

Act: Section 1 "retail sale", "use"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "obtain"

PSTR: Section 24

Bulletin PST 112

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 37 exemptions from tax for boomsticks and used boom gear.

Subsection 37(1) provides that boomsticks are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act.

Subsection 37(2) provides that the following boom gear is exempt from tax imposed under Part 3 of the Act, other than Division 9 [Change in Use], if the boom gear was previously sold at a retail sale and previously used as boom gear:

(a) boom chains obtained for use in tying boomsticks together to form a frame;

(b) bundle and continuous wires obtained for use in securing logs that are transported within a frame;

R.1 Logging Boomsticks (Issued: 2014/04)

A boomstick is a long pole, made of wood or other material (such as metal or plastic), which can be chained together to form an enclosure for use in water-based log handling. Boomsticks are used to contain logs while in a body of water and may be subdivided into two types, "standing" and "transit". Standing boomsticks are attached to a piling, wharf, etc. to make a stationary log storage area in water, such as a staging area for log sorting or transit. Transit boomsticks are used to make an enclosure for the transport of logs on a body of water. An enclosure of transit boomsticks will be floated from site to site, generally by a boom boat. Both types of boomsticks are exempt from PST.

Section 38 – Chemical Substances, Catalysts And Direct Agents

PSTERR - SEC.38/Int.

References:

Act: Section 1 "lease", "sale", "substantially", "tangible personal property", "use"; Part 3; Part 3 – Division 9; Section 89; Section 90; Section 99

PSTERR: Section 1 "obtain"

PSTR: Section 24

Bulletin PST 110

Interpretation (Issued: 2014/02; Revised: 2016/06)

Effective April 1, 2013, B.C. Reg. 166/2016 amends PSTERR paragraph 38(2)(a) to refer to "tangible personal property" instead of "a product." The use of the term "tangible personal property" is consistent with the Act and with other exemptions.

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 38 an exemption from tax for chemical substances, catalysts, direct agents and exothermic sleeves obtained for a specified use.

PSTERR - SEC.38(2)/R.1-R.32

(2) Exempt Chemical Substances, Catalysts and Direct Agents

R.1 Mining Companies (Issued: 2014/04)

The following items may be obtained exempt from PST when used by mining companies as chemical substances, catalysts or direct agents. Please note that under PSTERR paragraphs 38(3)(f)-(g), PST applies to any product used for assay or control (testing) purposes or when added to a tailings or settling pond.

Please note: This is not a complete list.

Gold Mines

Acetic Acid
Aerofloat
Aerofloats 15, 25, 31, and 208
Ammonia
Analine Hydrochloride
Aqua Regia
Barrett No.4
Borax
Borax (anhydrous)
Borax Glass
Borax Silica
Calcium Cyanide
Copper Sulphate
Cresylic Acid
Cyanide
Dicalite Speedplus or Hiflo-Supercel
Fluorspar
Hiflo-Supercel
Hydrochloric Acid
Hydrogen Peroxide Lead Acetate
Lead Nitrate
Lime
Litharge
Lye and Mercury
Manganese Dioxide
Manganese Oxide
Mercury
Muriatic Acid
Nitrate of Soda
Nitre
Nitric Acid
Oxalic Acid
Phenolphthalein
Pine Oil
Potassium Iodine
Potassium Nitrate
Potassium Permanganate
Regent 301
Secondary Butyl Xanthate
Silica
Silica Flour
Silver Nitrate
Soda Ash
Sodium Aero Float
Sodium Cyanide
Sodium Nitrate
Sodium Silicate
Stannous Chloride
Sulphur Dioxide Sulphuric Acid
Super Cell
Xanthate Reagent 301 (Z8)
Zinc Dust

Silver Mines

Aero float
Aero floats 15, 25, 31, and 208
Ammonium Hydroxide
Bone Ash
Borax
Cinchonine
Cresylic Acid
Fluorspar
Lime
Litharge
Manganese Dioxide
Phosphoric Acid
Pine Oil
Potassium Amyl Xanthate
Potassium Carbonate
Potassium Nitrate
Silica
Silica Sand
Sodium Borate
Sodium Carbonate
Sodium Cyanide
Sodium Peroxide
Thiocarbanilide
Uranium Acetate
Zinc Dust

Lead-Zinc-Silver Mines

Acetic Acid
Aerofloat
Aerofloats 15, 25, 31, and 208
Ammonia
Ammonium Acetate
Ammonium Chloride
Ammonium Molybdate
Ammonium Persulphate
Barrett No. 4
Bone Ash
Borax
Copper Sulphate
Creosote Oils and Tars
Cresylic Acid
Cyanide
D-40 (detergent frother-tungsten mines)
Dowfroth
Emulsol
Ferro-Silicon
Flour (oxidizing agent)
Hydrochloric Acid
Isprophyl Xanthate
Lime
Litharge
Methyl Isobutyl Carbinol or Amy/Alcohol
M.P. 189
Nitre
Nitric Acid
Orco
Pine Oil
Potassium Chlorate
Potassium Dichromate
Potassium Ethyl Xanthate Z3
Potassium Ferrocyanide
Potassium Iodide
Quebracho
Reagents 208, 226, 610, 4040
Silica
Soda Ash
Sodium Aerofloat
Sodium Aerofloat "B"
Sodium Bichromate
Sodium Cyanide
Sodium Ethyl - Xanthate Z-3
Sodium Silicate
Sodium Sulphate
Sodium Thiosulphate
Starch
Sulphuric Acid
Tannic Acid
Test Lead
Xanthate
Xanthate 601
Zinc Dust
Zinc Sulphate

Copper Mines

Aerofloats
Alum
Ammonium Thioglycolate
Aqua Ammonia
B-23
Butyl Xanthate 28
Chromic Acid
Cobalt Sulphate Coke (as a fuel)
Copper Sulphate
Ethyl Xanthate 23
Lime Methyl Isobutyl Carbinol
Nitric Acid
Pine Oil
Soda Ash
Sodium
Sodium Cyanide
Sulphuric Acid
Zinc Sulphate

Ore Mines

Acetic Acid
Aerofloats
Aerosal O.T. 75
Ammonium Carbonate
Ammonium Catalyst
Ammonium Chloride
Ammonium Molybdate
Ammonium Oxalate
Ammonium Persulphate
Barium Carbonate
Barium Chloride
Barium Hydroxide
Barrett No. 4
Bauxite
Beta Naphol
Bichromate of Soda
Bluestone
Bone Ash
Borax Glass
Bromine
Calcium Carbonate
Calcium Lignosite
Carbon Deoxidizer
Caustic Potash
Caustic Soda
Cinchonine, Alk, J.T.B.
Cobaltous Chloride
Cobaltous Nitrate
Copper Scrap
Copper Sulphate
Creosote K 66 and Oils
Crosfloc CFA40
Cuprous Chloride
Dicalite Speedplus
Di-isopropanolamine
Dimethylglyoxime
Dupone
Ether
Ferric Ammonium Sulphate
Ferric Chloride
Ferric Sulphate Cyanide
Ferrous Ammonium Sulphate
Ferrous Chloride
Formic Acid
Fumal
Glue
Goulac
Harcoterge Slurry
Hydrazine Sulphate C.P.
Hydrochloric Acid
Hydrofluoric Acid C.P.
Hydrogen Peroxide
Hydroxylamine Hydrochloride
Hyflo Supercel
Iodine U.S.P.
Iron Pyrite
Iron Sulphide
Lime
Lignin Pitch
Litharge
Lix 63-70
Lotar
Manganese Dioxide
Mercuric Chloride
Mineric
Molybdic Acid
Muriatic Acid
Nickel Powder
Nitric Acid
Norpetro Cresol
Oleic Acid
Oxalic Acid
Pine Oil No. 5
Platinum Gauze
Potassium Bichromate
Potassium Carbonate
Potassium Chloride
Potassium Ferrocyanide
Potassium Fluoride
Potassium Iodide
Potassium Nitrate
Potassium Permanganate
Potassium Thiocyanate
Promoter Iron Oxide
Quartzine
Shell Cresylic
Silver Nitrate
Soda Ash
Sodium Bicarbonate
Sodium Bismuthate
Sodium Carbonate
Sodium Citrate
Sodium Nitrate
Sodium Peroxide
Sodium Sulphate
Sodium Sulphide
Sodium Sulphite
Sodium Thiosulphate
Strontium Carbonate
Sulfolane
Sulphuric Acid C.P.
Superfloc 1120
Tannic Acid
Tartaric Acid
Test Lead
Tributyl Phosphate
Tricalcium Phosphate
Vanadium Pentoxide
Water Gas Tar
Wood Methyl Alcohol
Xanthate Z-9
Zinc Chloride
Zinc Oxide

R.2 Oil Refining Industry (Issued: 2014/04; Revised: 2016/06)

The following items are exempt when used as chemical substances, catalysts or direct agents in the oil refining process.

Please note: This is not a complete list.

Activated Alumina
Alchem 193, 37081, 4144, 5537
Ammonia
Anhydrous Hydrofluoric Acid
Anti-Foam Agents
Bauxite
Calcium Chloride
Catalytic Cracking Catalyst
Catalytic Reforming
Catalyst
Caustic Soda
Cobalt Molybdenum
Concentrated Sulphuric Acid
Dehydration chemicals (e.g., Silica Gel)
Demulsifiers
Dewaxing Compounds
Diethylene Glycol
Glycol Corrosion Inhibitors
Hydrogen gas
Litharge
Na MBT
NA Cap
Nalcolyte 8103
Natural Catalysts being compounds of aluminum, silicon, nickel, manganese, iron and other metals
Oleyl Alcohol
P 4 Red Synthetic Catalyst
Triethylene Glycol
Vanol
Vishem 1688
Wax Solvents

R.3 Wool Manufacturers (Issued: 2014/04)

The following items are exempt when used as chemical substances, catalysts and direct agents by wool manufacturers.

Please note: This is not a complete list.

Acetic Acid
Aqua Ammonia
Kloramine
Medolene

R.4 Pulp And Paper Industry (Issued: 2014/04)

The following lists describe how tax applies to chemical substances, catalysts and direct agents used in the pulp and paper industry.

Please note: These lists are not complete.

Pulp Production

Pulp Production
Chemical	Application	Tax Status
Anthraquinone	Used as a cooking catalyst in the pulp digester process	Exempt
Biocides/Slimecides	See biocide/slimecide section below	Exempt
Calcium Carbonate	Used to recover sodium hydroxide and sodium sulfide from the slag for reuse as white liquor. (see lime section below)	Exempt
Calcium Hydroxide	Used to recover sodium hydroxide and sodium sulfide from the slag for reuse as white liquor. (see lime section below)	Exempt
Calcium Oxide (Lime)	Used to recover sodium hydroxide and sodium sulfide from the slag for reuse as white liquor. (see lime section below)	Exempt
Chelating Agents	Used to neutralize heavy metals in wood chips in the pulp bleaching process when added to the slurry. The most common chelating agent is DTPA -diethylenetriamine pentaacitic acid	Exempt
Chlorine Dioxide	Used as a bleaching agent in the pulp bleaching process	Exempt
Chlorine Gas	Used as a bleaching agent in the pulp bleaching process. Used with sodium hydroxide to manufacture hypochlorite, which is used to treat pulp during the hypochlorite stage of the Kraft bleaching process.	Exempt
Defoamers	Used to control foaming in the pulp washers during the brownstock washing and bleaching process.	Exempt
Draining Agents	Used to reduce the surface tension of the pulp, thereby permitting faster water drainage (normally used in conjunction with defoamers)	Exempt
Felt Conditioners	Used in the drying phases of the manufacture of pulp or paper to dissolve and disperse contaminants that may act to foul the felt fabric (see "felt conditioners" section below).	Exempt
Hydrogen Peroxide	Used with sodium hydroxide, sodium silicate and magnesium sulfate in the peroxide brightening process. Used with sodium hydroxide and oxygen to treat pulp during the extraction stage of the Kraft bleaching process	Exempt
Hypochlorite	Used to treat pulp during the hypochlorite stage of the Kraft bleaching process.	Exempt
Magnesium Sulfate	Used with sodium hydroxide, sodium silicate, and hydrogen peroxide in the peroxide brightening process.	Exempt
Oxygen Gas	Used with sodium hydroxide and hydrogen peroxide to treat pulp during the extraction stage of the Kraft bleaching process	Exempt
Oxygen Gas	Used to treat effluent. Oxygen helps break down organic matter into harmless substances.	Taxable
Sodium Carbonate (Soda Ash)	Used in combination with hydrogen peroxide and oxygen to treat pulp during the extraction stages of the bleaching process.	Exempt
Sodium Carbonate (Soda Ash)	Used to recover sodium hydroxide and sodium sulfide from the slag for reuse as white liquor. (see lime section below)	Exempt
Sodium Hydrosulfite	Used with sodium hydroxide to form a synthetic white liqour in the pulp digester process.	Exempt
Sodium Hydrosulfite	Used to treat pulp during the hydro brightening process.	Exempt
Sodium Hydroxide (Caustic Soda)	Used with sodium sulphide as a white liquor in the pulp digester process. Used with sodium hydrosulfide to form a synthetic white liquor in the pulp digester process. Used with hydrogen peroxide and oxygen, or with sulphur dioxide, to treat pulp during the extraction stage of the bleaching or pulp brightening process. Used with sodium silicate, hydrogen peroxide, and manganese sulfate in the peroxide brightening process. Used with sulphur dioxide to manufacture sodium sulfite, which is used to pretreat pulp under the mechanical pulping process. Used with chlorine gas to manufacture hypochlorite, which is used to treat pulp during the hypochlorite stage of the Kraft bleaching process.	Exempt
Sodium Silicate	Used with sodium hydroxide and hydrogen peroxide and magnesium sulfate in the peroxide brightening process.	Exempt
Sodium Sulfate	Used to recover sodium hydroxide and sodium sulfide from the slag for reuse as white liquor. (see lime section below)	Exempt
Sodium Sulfide	Used with sodium hydroxide as a white liquor in the pulp digester process.	Exempt
Sodium Sulfite	Used to treat pulp under the mechanical pulping process.	Exempt
Sulphur Dioxide	Used with sodium hydroxide to treat pulp during the extraction stage of the mechanical pulp brightening process. Used with sodium hydroxide to manufacture sodium sulfite, which is used to pretreat pulp under the mechanical pulping process.	Exempt
Talc	Used for pitch and deposit control in the pulping process	Exempt

Lime

Lime is used in the digesting process for the rejuvenation of black liquor into white liquor. Although the black liquor is channelled off for recovery, it is ultimately recycled back into the production process. Therefore, lime is a chemical substance that is essential for the processing or manufacture of a product for sale or lease.

Please note that lime used outside of the production process does not qualify for exemption.

Felt Conditioners

Felts are used in the drying phases of the manufacture of pulp or paper. They assist with the extraction of residual fluids remaining in the mixture containing the pulp/paper fibre. These fluids contain certain contaminants that may act to foul the felt fabric. Felt conditioners assist with the solubility and dispersal of these contaminants. This makes cleaning the fabric easier and may, in turn, extend the useful life of the felt.

Biocides/Slimecides

Biocides are used as a direct agent in a chemical reaction for the manufacture of a product for sale since without the addition of the biocides, the resulting slime would render the pulp unsaleable.

Talc

Talc is used for pitch and deposit control in the pulping process. It is purchased in the form of a fine white powder and is sluiced with water before being metered into the brownstock washers. Once in the process, talc controls the formation of large pitch particles by dispersing the wood extractives (fatty acids and resins) within the pulp slurry. It does this through the absorption of small wood extractive particles. In the absorption process, a chemical reaction occurs with the magnesium silicate (a part of talc) reacting with the wood extractive fatty acids, the main cause of pitch, resulting in pitch dispersal. Talc qualifies as a direct agent and is exempt from PST.

Paper Production

Paper Production
Chemical	Application	Tax Status
Carbon Dioxide	This chemical is added to tissue paper stock prior to paper making. It is added in order to control the pH of the stock and maximize the activity of polymers used to increase drainage of the pulp for faster drying. Carbon dioxide qualifies as a direct agent because upon addition to the stock, it produces a chemical reaction with water to form carbonic acid and reacts with the alkaline constituents in solution.	Exempt
Caustic Soda (solution)	This chemical is added to the tissue paper stock prior to the papermaking process in order to control the pH of the stock. Caustic soda produces a chemical reaction with the cellulose fibres in the stock to produce degradation and swelling, which results in more bulk and improved tactile characteristics in the finished product.	Exempt

R.5 Metal Finishing (Issued: 2014/04)

Different kinds of metal finishing such as plating (or electroplating) and anodization may involve the use of items that are exempt as catalysts, direct agents or chemical substances.

Both plating and anodization meet the test as an electrolytic process because an electric current is passed through substances whose composition is changed as a result. Electricity used in these processes qualifies for the exemption as a direct agent. Chemicals used to create the electrolyte may also be exempt as chemical substances, catalysts and direct agents. Items that have been ruled exempt as chemical substances, catalysts and direct agents follow a description of each of these processes.

Plating

Plating or electroplating is an electrolytic process whereby an electric current is passed through a chemical solution (or electrolyte) to deposit a very thin coating of one metal on the surface of another metal. The electrolyte is often made by adding a metallic salt. During the electrolytic process the metal in solution is transferred to another metal that has been immersed in the electrolyte. Another technique involves the transfer of a positively charged metal terminal (the anode) to the negatively charged object (the cathode). Plating is a cost saving measure as an alternative to incurring the prohibitive cost of manufacturing a part consisting entirely of the coating metal.

Exempt Lists

The following are lists of items that are exempt as chemical substances, catalysts and direct agents in the plating of various metals.

Please note: These lists are not complete.

Brass and Bronze Plating

Aquatone S-381, SE-481
Electricity
Boric Acid
Sodium Cyanide
Caustic Soda
Sodium Hydroxide
Copper Cyanide
Zinc Cyanide
Electrodes (elliptical brass anodes)
Cadmium Plating
Cadmium Balls
Muriatic Acid
Cadmium Brighteners
Nitric Acid
Cadmium Oxide
Potassium Cyanide
Electricity
Sodium Carbonate
Electrodes
Sodium Cyanide
Hydrochloric Acid
Sodium Hydroxide
Chrome Plating
Barium Carbonate
Lead Anodes
Chromic Acid
Unichrome Salt
Electricity
Zeromist HT 2
Electrodes

Cyanide Copper Plating and Acid Copper Plating

Acid Salt
Potassium Cyanide
Brightening Agents
Potassium Hydroxide
Copper Anodes
Rochelle Salts
Copper Cyanide
Sodium Carbonate
Copper Sulphate
Sodium Cyanide
Cubrite #1085
Sodium Hydroxide
Electricity
Sodium Nitrate
Electrodes
Sulphuric Acid
Lead Plating
Fluoboric Acid
Hide Glue
Electricity
Lead Fluoborate
Electrodes
Nickel Plating
Acid Salt
Nickel rounds (anodes - electrodes)
Boric Acidal
Nickel Sulphate
BNA chemical
Non-pitters
Brighteners
NP-A
Electricity
Potassium Permanganate
Electrodes
Sodium Fluoborate
Nickel Anodes
Sulphuric Acid
Nickel Carbonate
Z D100 chemical
Nickel Chloride
Supreme brightener
Silver Strike
Potassium Cyanide
Silver Cyanide
Potassium Hydroxide
Silver Plating
Electricity
Potassium Cyanide
Electrodes
Potassium Hydroxide
Potassium Carbonate
Silver Cyanide
Tin Plating
Electricity
Potassium Stannate
Electrodes
Sodium Hydroxide
Potassium Hydroxide
Silver Stannate
Zinc Plating
Acid Salt-dry
Sodium Cyanide
Electricity
Sodium Hydroxide
Electrodes
Zinc Anodes
Liquid Sulphur No. 4
Zinc Brighteners
Macro Bronze No. 2
Zinc Cyanide
Zinc Metal Dust
Oakite #90
Zinc Purifier
Oakite Cleaner

Anodization

Anodization is an electrolytic process whereby a metal item is placed in an electrolyte and an electric current is passed through the tank. Anodization causes oxygen atoms to bond to the surface of the metal item giving it a thin protective film and a lustrous appearance. The most commonly anodized metals are aluminum and magnesium with zinc, beryllium, titanium, zirconium and thorium also used. During anodization the oxide coating actually forms part of the metal substrate. By contrast, plating is merely the deposition of one metal on another.

Alumium anodization
Electricity
Electrodes
Chromic acid
Sulphuric acid

R.6 Steel Industry (Issued: 2014/04)

The following items/substances used in the steel industry are exempt:

Please note: This is not a complete list.

Basic Brick: Used on furnace lower sidewall, slag line sidewall, and sub-hearth
Description	Brand Name	Composition
No. 1 & 2 plain key	Kriline 65 Codex 60	60-65 percent Magnesite
	Diamond 60	60-65 percent Magnesite
	Narmag 60 DB	60-65 percent Magnesite
	Rexal 60 DB	60-65 percent Magnesite
	Krilex 621	60-65 percent Magnesite

Basic Brick: used on furnace upper sidewall.
Description	Brand Name	Composition
No. 1 & 2 metal clad key	Kriline 65 Codex 60 Dibond 60	60-65 percent Magnesite
	Narmag 60 DB	60-65 percent Magnesite
	Rexal 60 DB	60-65 percent Magnesite
	Krilex 621	60-65 percent Magnesite

Gunning Material: used to repair slag line sidewall, lower sidewall, and working hearth.
Brand Name	Composition
Gunpatch MR	95 percent Magnesite
Gundol	95 percent Magnesite
Gunpatch MK	95 percent Magnesite
Magnamix	95 percent Magnesite
MD 105	95 percent Magnesite
K-R GUN 65	95 percent Magnesite
Rubinit 85	95 percent Magnesite

Ramming Mix: used in the stadium (between the sub-hearth and lower sidewall)
Brand Name	Composition
Permente 857	85.7 percent Magnesite
Dry mix

Bulk Magnesite: mixed with betonite and water to form working hearth
Brand Name	Composition
Magnesite DB87	100 percent Magnesite
Pyro-Mag	100 percent Magnesite

Fluorspar: used to liquefy slag.

The following items/substances that may be used in the steel industry do not qualify as chemical substances, catalysts or direct agents and are subject to tax.

Electricity: used for generating heat for melting steel

R.7 Aluminum Industry (Issued: 2014/04)

The following items are exempt when used as chemical substances, direct agents or catalysts in aluminum production. Please note that under PSTERR paragraphs 38(3)(f)-(g), PST applies to any product used for assay or control (testing) purposes or when added to a tailings or settling pond.

Please note: This is not a complete list.

Aluminum Fluoride
Ammonium Nitrate
Calcium Fluoride
Carbonate
Carbon Electrodes
Caustic Soda
Chlorine
Cryolite (natural and artificial)
Dye (becomes incorporated into product for resale)
Electrode materials - carbon electrodes, pitch, electrode paste, refined tar
Electrode paste
Electrolyte materials - cryolite (natural and artificial), fluorspar, soda ash, aluminum fluoride
Fluorspar
Fluxing Material - Chlorine
Lacquer (becomes component part of product for resale)
Lithium Carbonate
Lithium Hydroxide
Magnesium
Magnesium Fluoride
Magnesium Melting
Magnesium Oxide
Nitrogen used in fluxing of liquid aluminum
Oakite 34, 130
Refined Tar
Soda Ash
Sodium Chloride (common salt)
Sodium Fluoride
Sulphuric Acid when used on aluminum ingots for resale (taxable when used in processing aluminum ingots that will be retained in storage and subsequently used as raw materials for extrusions, etc.)

R.8 Welding Rods, Solder And Fluxes And Gases Used In Arc Welding (Issued: 2014/04)

In the arc welding process, separate pieces of metal are joined together through the use of an electric arc. The welding process requires the use of welding rods, solder, fluxes, and gases.

Welding Rods and Solder

Welding rods and solder that are used in the manufacture of a product for resale are exempt from PST. They also qualify for exemption under paragraph 141(1)(c) [exemptions in relation to industry and commerce] when used in the course of a related service because the rods and solder remain part of the TPP being serviced.

Welding Fluxes

When fluxes are used in a welding operation or in the cupola during melting operations; a chemical reaction takes place and the flux is consumed. Accordingly, they qualify for exemption as direct agents. However, welding fluxes are taxable when used in the course of a related service because they do not remain part of the TPP being repaired.

Welding Gases

Welding gases qualify for exemption under PSTERR section 38 if they produce of modify a reaction that is essential for the processing or manufacture of a product for sale or lease. Purchases or leases of welding gas cylinders, tanks and other storage devices containing the welding gases are not exempt because these devices are not used directly in a production process. The cylinders are storage devices.

In the welding process, gases are used to protect the molten weld and the heat-affected zone from oxidation and other contaminates in the atmosphere. During the welding, the gas establishes a "shield" around the weld area protecting it from contamination from the surrounding air. A number of different gases may be used, and the gases may either be reactive or inert. Welding gases used in this manner qualify for the exemption, as they produce or modify a reaction that is essential for the processing or manufacture of a product for sale or lease.

Welding gases (e.g., oxygen) that are used to produce heat (i.e., a form of energy) during the welding process remain taxable. PSTERR paragraph 38(3)(a) excludes chemical substances, catalysts and direct agents, other than electricity used in an electrolytic process, used to produce energy or as a source of energy.

Welding gases used to repair customer owned TPP are also taxable because they are not used for processing or manufacturing a product for sale or lease.

R.9 Molybdenum Mining (Issued: 2014/04)

The following items are exempt when used as chemical substances, catalysts or direct agents in the production of molybdenum.

Please note: This is not a complete list.

Acetone
Arctic Syntex L
Carnea Oil No. 4
Caustic Soda
Caustic Soda Flake
Corn Starch
Diesel No. 2
Pentasulphide
Dow Froth 250
Diesel No. 2
Dow Froth 250
Fuel Oil (when use with frother in flotation process)
Lime
M.I.B.C.
Methyl Isobutyl Carbinol
Phosphorus Pentasulphide
Pine Oil
Sodium Cyanide
Sodium Silicate
Stove Oil (when used with frother in flotation process)

Please note that under PSTERR paragraphs 38(3)(f)-(g), PST applies to any product used for assay or control (testing) purposes or when added to a tailings or settling pond.

R.10 Industrial Galvanizing (Issued: 2014/04)

The following items are exempt when used as chemical substances, catalysts or direct agents in the galvanizing process.

Please note: This is not a complete list.

Ammonium Chloride (White Fines, Zinc, etc.)
Chromic Acid Flakes (Component)
Galvac Zinc (Component)
Hydrochloric Acid
Muriatic Acid
Silver Metal (Component)
Sulphuric Acid
White Fines Ammonium Chloride
Zinc Ammonium Chloride

R.11 Cloth Dyeing (Issued: 2014/04)

The following items are exempt when used as chemical substances, catalysts and direct agents in the cloth manufacturing and/or dyeing industry.

Please note: This is not a complete list.

Acetic Acid
Ammonium Sulphate
Dilatin
Irgasol D.A.
Nacconal
Pentine Flakes
Sandopan
Sodium Bichromate
Sodium Sulphate
Tinegal W

R.12 Soap Manufacturing (Issued: 2014/04)

The following items are exempt when used as chemical substances, catalysts or direct agents in the manufacture of soap.

Please note: This is not a complete list.

Anti-oxidant (component)
Caustic Soda
Celkate
Citric Acid
Lignon pitch
Microcel
Sulphuric Acid
Trisodium Phosphate

R.13 Biological Chemists (Issued: 2014/04)

The following items are exempt when used as chemical substances, catalysts and direct agents by biological chemists.

Please note: This is not a complete list.

Ethyl Alcohol Oleyl Chloride
Ethylene Dichloride Propylene Glycol
Methanol Pyridine - 2o
Methyl Bromide (P.C.P. NO.) Sodium Bicarbonate
Peptides (see R.29)

Chemicals used in the laboratory for testing (e.g. Ethyl Ether and Glycerine) are taxable. See PSTERR/SEC.38/Int.

R.14 Vitamin Production (Issued: 2014/04)

The following items are exempt when used as chemical substances, catalysts and direct agents in vitamin production.

Please note: This is not a complete list.

Acetone
Alpha-Floc
Aluminum Sulphate
Carbon Tetrachloride
Diethyl Sulphate
Disodium Phosphate
Hydrogen (component)
Palmitoyl Chloride

Nitric Acid which is used to passivate and clean the surfaces of stainless steel equipment is taxable.

R.15 Nail Manufacturing (Issued: 2014/04)

Lime, Sulphuric Acid and Zinc Ammonium Chloride are exempt as chemical substances, catalysts and direct agents when used in the nail manufacturing industry.

R.16 Sugar Refining (Issued: 2014/04)

Animal bone charcoal used for the molecular absorption of inorganic salts is exempt as a direct agent in the sugar refining process.

Diatomaceous Earth used to filter out resins in sugar production is exempt from tax because it is essential for the processing or manufacture of a product for sale or lease.

R.17 Shoe Leather Production (Issued: 2014/04)

The following items are exempt when used as chemical substances, catalysts and direct agents in shoe leather production.

Please note: This is not a complete list.

Bicarbonate of Soda
Pentan
Corum Oil
Petroleum (as a stuffing compound)
Degras
Pigmenta (finishing material)
Demethylamine
Recorcuna Brown
Dye for Scotchguard
Salt
Fish Oil
Scotchguard F.C. 146
Formic Black
Soda Ash
Fortier
Sodium Sulphate
Leckanol
Sulphur Sperm Oil
Lime
Sulphanated Cod Oil
Neats Oil - Raw
Sulphanated Neats Foot Oil
Neats Oil - Sulphanated Sulphuric Acid
Or-22
Sumach
Oropon D.S.
Tanolin
Oropon X.X.
Wattle
Orotan T.V.
Wax
Oxalic Acid
Woolgrease

R.18 Hydrogen Peroxide (Issued: 2014/04)

Hydrogen peroxide is exempt as a catalyst in the paint manufacturing industry.

Hydrogen Peroxide that becomes part of the brine in which pickled herring is packaged is also exempt in the production of pickled herring.

R.19 Brass, Bronze, And Other Alloy Foundries (Issued: 2014/04)

The following items used in foundries have been ruled exempt as chemical substances, catalysts or direct agents. This does not apply to the use of such products in steel or aluminum foundries.

Please note: This is not a complete list.

Agricultural Lime
Hoptop Liquidizer (Isotherm)
Arev Wedges and Arches
Blast Patch
Iron Ore
Brefcan
Lincoln Fireclay
Calcium - Manganese - Silicon
Magnepatch
Calcium Silicon
Meltzona
Carbon Steel Risotherm
Motor Choplets
Coelex 80 Bricks
Mortar
Crushed Furnace Brick
Mullite Plastic (mortar)
Ferrochrome Silicon
Oxygen in steel lancing (not as fuel source)
Ferromanganese process
Ferrosilicon
Ferroy Moly Ladle Alloy
Permanente
Fireclay - Lincoln
Plibiro 80 Air Bond (mortar)
Fluorspar
Furnace Brick - Crushed
Risotherm
X-49 compound
Shell Carbon
Gilsocarbon
Sodium Silicate
Graphite Connector Pins
Graphite Electrodes

R.20 Catalyst Support Beds (Issued: 2014/04)

Catalyst support beds which are manufactured to physically support the catalyst used in transforming hydrogen sulphide gas into sulphur do not qualify for exemption. As such support beds do not produce or modify a reaction, alter the speed of a chemical reaction and are not consumed to produce a reaction or a combination of materials by altering the speed of the reaction, they are not therefore considered to be chemical substances, catalysts or direct agents.

R.21 Electrolytic Copper Plant (Issued: 2014/04)

Sulphuric acid, organic reagents (kerosene and aldoxime), electricity and electrodes qualify as direct agents in the electrolytic process for extracting copper.

R.22 Production Of Methanol (Issued: 2014/04)

The following chemicals qualify for exemption as direct agents when they are used to inhibit the corrosion potential of water and steam in the production of methanol.

Please note: This is not a complete list.

Alchem 8103
Amberlite 1R 458 and 120
Ambersep 200, 900 and 359
Cortol
Disodium phosphate
Ferro dispersant
Liquimine
Sodium hydroxide
Sulphuric acid
Trisodium phosphate

R.23 Kerosene Used In Coal Separation (Issued: 2014/04)

Kerosene used by the coal mining industry to separate coal from waste rock qualifies for exemption as a direct agent.

R.24 Wire Manufacturing (Issued: 2014/04)

Sulphuric and muriatic acids qualify as direct agents when used in the manufacture of steel wire. Ammonium chloride, borax, lime, and rodine are exempt from tax in the wire-making industry.

In addition, the chemicals Gardobond Z 3100, Gardobond D, Gardobond G, Gardobond B qualify as direct agents when used to clean and coat the wire during the zinc-phosphating process. Phosphating is a chemical conversion coating that transforms the surface of the wire during the manufacturing process.

R.25 Natural Gas Production (Issued: 2014/04)

The following items qualify as direct agents when used as described in the production of natural gas.

Active Alumina - used to transform hydrogen sulphide from raw gas into sulphur.
Diethanolamine - used in an amine solution for removal of contaminants from sour natural gas.
Caustic Potash (potassium hydroxide) - used in a solution for removal of contaminants from sour natural gas.
Diisoprophly Amine - used in an amine solution with sulfolane for removal of contaminants from sour natural gas.
Sulfolane - used in an amine solution with diisopropanolamine for removal of contaminants from sour natural gas.
Monothanolamine - used in an amine solution for removal of contaminants from sour natural gas.
Methyldiethanolamine - used in amine solution for removal of contaminants from sour natural gas.
Hydrogen Sulfide Scavengers - added to natural gas to transform toxic hydrogen sulphide gas into harmless sulfides.
Dehydration chemicals (e.g. Diethylene Glycol, Triethylene Glycol) - In the processing of natural gas, these chemicals are injected into a vessel containing a stream of wet natural gas (methane). The glycols are temporarily incorporated into the gas mixture of methane and water, and attach themselves to the water molecules. They separate the water from the methane and the chemicals are removed, removing the water with them. When used in this manner, these chemicals are involved in a reaction that is essential for the processing or manufacture of a product for sale or lease.
Caustic Soda - In the processing of natural gas, caustic soda is used to recharge monothanolmine solutions.
Selexol, supplied by Dow Chemicals and Union Carbide, is a solvent that effectively and economically removes bulk CO2 (carbon dioxide), and selectively absorbs H2S (hydrogen sulphide), COS (carbon, oxygen and sulphur), merceptans or BTEX (Benzene, Toluene, Ethlybenzene, and Xylene) from natural and synthesis gas. Selexol therefore qualifies for exemption as a chemical substance.

The following items are taxable:

De-wax Chemicals (e.g., M-112, M-45, PM-6016, and M-185 supplied by Champion Chemicals; Parc 400 supplied by Big Chief; and PA0715 and PA2328 supplied by Baker Petrolite). These chemicals are used as paraffin solvents, and put into the wellhead to prevent or remove a naturally occurring waxlike substance which can build up in the well casings and pipeline. These chemicals inhibit and break down the formation of these waxes in the lines in order to maintain constant well flow. Their primary purpose is well maintenance. See PSTERR paragraph 38(3)(d).
Scale Removers (e.g., T-227 supplied by Champion Chemicals and SRW0029C supplied by Baker Petrolite) - their primary purpose is well maintenance. See PSTERR paragraph 38(3)(d).

R.26 Metal Hardening (Issued: 2014/04)

Natural gas that is directly used for hardening steel in an endogas furnace is exempt from PST as a direct agent. Natural gas qualifies as a direct agent because the carbon particles of the natural gas come into direct contact with, and become part of, the steel, the surface characteristics of the steel transforms through a chemical reaction involving the natural gas, and after the manufacturing process is complete, the natural gas dissipates and cannot be re-used.

Natural gas used with Park Super Catalyst (nickel oxide pellets) in the process of hardening metals, qualifies for exemption. They combine to produce inert gases that in turn form a protective blanket over metal being held at high temperatures in a furnace.

R.27 Silicon Metal Manufacturing (Issued: 2014/04)

In the silicon metal manufacturing process, quartz (silicon dioxide) and coal (carbon) are heated in an electric arc furnace using carbon electrodes heated via electricity. The heat causes these substances to react and form the silicon metal as well as carbon monoxide and other waste gases. Woodchips are added to the charge to add porosity, which facilitates the movement of substances through the charge, and to reduce the surface temperature of the charge through water evaporating from the wood. Carbon from the woodchips and the electrodes also enters into the chemical reactions producing the silicon metal.

Quartz: qualifies for exemption under paragraph 141(a) as it is manufactured into silicon, the product being produced for sale.
Coal: qualifies for exemption as a direct agent. It comes into contact with the quartz, and through a chemical reaction between these substances, the quartz is converted into the silicon metal being produced for sale.
Woodchips: improve the porosity and reduce the surface temperature through water evaporation during the silicon metal manufacturing process. The porosity and surface temperature reduction modify or enhance the environment for the various chemical reactions taking place in the charge. Carbon in the form of charcoal from the woodchips enters the charge as the woodchips are burned and reacts with the gases and other substances to improve the yield of silicon. Woodchips qualify for exemption as chemical substances when they are used to produce or modify a reaction that is essential for the processing or manufacture of a product for sale or lease.
Carbon Electrodes: In the silicon metal manufacturing process, the electrodes are purchased and used to transfer the energy to the charge. The electrodes are gradually consumed during the heating process with the carbon released being consumed in the chemical reactions which produce the silicon metal. In this application therefore, carbon electrodes qualify as direct agents.

Please note, carbon electrodes may also qualify for exemption from PST as parts and materials eligible for the production machinery and equipment exemption under PSTERR subsections 108(1)-(2) [parts and materials].

Electricity: Electricity is used to generate the source of heat for the chemical reactions occurring in the arc furnace. No electrolytic processes occur in the furnace. Under PSTERR paragraph 38(3)(a), electricity used to produce energy (heat) is excluded from exemption as a chemical substance, catalyst, or direct agent. The silicon metal manufacturer must pay tax on its purchase of the electricity.

R.28 Peptides (Issued: 2014/04)

Peptides qualify for exemption as a catalyst because they produce a chemical reaction that is in contact with the material (blood) that is being transformed (or manufactured) and sold.

Biopharmaceutical companies use peptides to create antibodies. The peptides are added to the bloodstream of a surrogate living organism, such as a rabbit, pig, or other animal. The animal's immune system reacts to the peptide by forming an antibody that is able to fight certain specific chronic diseases such as AIDS and cancer. Once the animal's immune system has produced enough antibody, the blood is taken from the animal and the antibody is removed and readied for injection into humans.

R.29 Caustic Soda Used In Propane And Butane Production (Issued: 2014/04)

Caustic soda is used in the production of propane and butane in order to make it saleable. In order for propane and butane to be saleable, only a minimum amount of mercaptans can be found in the final product. Caustic soda bonds with the mercaptans through a chemical reaction to form mercaptides. These mercaptides then remain in the caustic stream allowing the propane and butane to be "sweet" and saleable. Caustic soda qualifies for exemption from PST as a chemical substance, catalyst or direct agent.

R.30 Mould Release Products (Issued: 2014/04)

Mould release products are applied to the inside of moulds to facilitate removal of the moulded product from the mould.

Mould release products qualify for exemption as chemical substances or direct agents obtained for use in processing or manufacturing as they produce either a physical reaction, in the case of non-reactive mould release products, or a chemical reaction, in the case of reactive mould release products, which is essential to the processing or manufacturing process.

R.31 Chemicals Used In Oil And Gas Extraction (Issued: 2014/09)

Chemicals used down-hole in oil and gas drilling are not eligible for exemption as chemical substances, catalysts and direct agents. Under PSTERR section 38(2), the chemical substance, catalyst or direct agent must be used in:

a) in processing or manufacturing a product for sale or lease, and

b) to produce or modify a reaction that is essential for that processing or manufacturing

In the case of chemical substances, catalysts or direct agents used in down-hole applications, the requirement under PSTERR s.38(2)(b) is not met as such applications are part of the extraction of the oil or gas rather than processing or manufacturing.

Examples of substances used down-hole which do not qualify for exemption as chemical substances, catalysts or direct agents include:

Drilling mud
Hydraulic control fluids
Nitrogen
Hydrochloric Acid
Proppants (particles added to fracking fluids to help keep fractures open)

R.32 Heat Transfer Fluids Used In Processing Natural Gas (Issued: 2014/09)

Heat transfer fluids are used in heat exchange units for heating of natural gas. The heat transfer fluids carry heat from a warm source and transfer it to the cold natural gas. This transfer of heat is a physical reaction. When used during the processing of natural gas to bring the gas to the required temperature for the particular operation or series of operations being performed, heat transfer fluids qualify as exempt chemical substances. In this capacity, the heat transfer fluids are acting directly on the TPP being processed, natural gas, and produce a physical reaction, the transfer of heat, which is one step in and is essential for the processing of the natural gas.

Heat transfer fluids used in heat exchange units differ from coolants used to cool engines as heat transfer fluids act directly on the TPP being processed while engine coolants act on the engine itself to prevent overheating.

Please note, heat transfer fluids used to heat natural gas during extraction or for transmission do not qualify for exemption as chemical substances under PSTERR s.38(2) as in these capacities, the heat transfer fluids are not being used in processing or manufacturing of TPP.

PSTERR - SEC.38(3)(A)/R.1-R.3

(3)(a) Exclusion if for Use to Produce Energy or as a Source of Energy

R.1 Manufacture Of Batteries (Issued 2014/04)

Electricity used in the manufacture of batteries, to charge batteries by the use of an electrolytic process which converts electrical energy into chemical energy, is exempt from tax as a direct agent under PSTERR subsection 38(2) and is not excluded by PSTERR paragraph 38(3)(a).

R.2 TPP Manufactured For Own Use (Issued 2014/04)

PSTERR section 38 requires that electricity for use in an electrolytic process be part of a process that involves the transformation or manufacture of a product for resale or lease. Where electricity is used in an electrolytic process to manufacture TPP for the manufacturer's own use, the purchase of the electricity does not qualify for exemption as a chemical substance, catalyst or direct agent.

R.3 Determining Portion Of Electricity Eligible For A Refund (Issued 2014/04)

Businesses generally must pay tax on their total electrical bill and then apply to the branch for a refund of the tax paid on electricity used in an electrolytic process that is eligible for exemption.

The portion of a business' total electricity bill that is eligible for a refund must reasonably reflect the amount of electricity used in an electrolytic process that involves the transformation or manufacture of a product for resale or lease. The method of calculating this portion will depend on the specific circumstances of each business. For example, if the business has a separate meter for the electrolytic equipment, the business would determine the amount of electricity that is used for manufacturing products for resale or lease, and the amount used for other purposes such as repairs. This determination could be calculated as the ratio of hours spent on manufacturing versus other purposes, the sales volume ratio of manufactured TPP versus repaired TPP, or some other appropriate means.

If the business has other equipment connected to the same meter, the electricity eligible for a refund could be determined by first calculating the amount of electricity used by each piece of equipment according to its kilowatt per hour rating and the amount of time the equipment was operated. The business would then subtract the electricity used by the non-electrolytic equipment. Once the electricity used in the electrolytic process is isolated, the amount used in manufacturing products for resale or lease versus that used for other purposes such as repair could be determined by an appropriate ratio as indicated above.

Refund claims should be reviewed carefully to ensure that the method used by the claimant is reasonable.

PSTERR - SEC.38(3)(G)/R.1

(3)(g) Exclusion if for Use for Testing Purposes

R.1 Assay And Control (Issued: 2014/04)

Assay: establishes the percentage of minerals present in ore samples. These samples are destroyed in the process.

Control: determined any change in the ore content from time to time through assay analysis.

Both assay and control are testing processes. PSTERR paragraph 38(3)(g) excludes any chemical substances, catalysts and direct agents from exemption when used for testing purposes. Therefore, any items used in assay and control processes are not exempt from PST as chemical substances, catalysts and direct agents.

PSTERR - SEC.38(3)(H)/R.1

(3)(h) Exclusion if for Use for the Purpose of Cleaning or Sanitizing

R.1 Cleaning Or Sanitizing (Issued: 2016/06)

Effective April 1, 2013, B.C. Reg. 166/2016 adds PSTERR paragraph 38(3)(h) to clarify that the exemption under PSTERR subsection 38(2) does not apply to a chemical substance, catalyst or direct agent obtained for the purpose of cleaning or sanitizing, unless the chemical substance, catalyst or direct agent is for use for the primary purpose of cleaning or sanitizing the TPP referred to in PSTERR paragraph 38(2)(a).

Chemicals used for the purpose of cleaning and sanitizing equipment used to process dairy products are an example of the type of chemical substances excluded from the exemption under PSTERR subsection 38(2). Such chemicals are used to clean and sanitize equipment-they are not used for the primary purpose of cleaning or sanitizing the dairy products. (In this example, the dairy products are the TPP referred to in PSTERR paragraph 38(2)(a).)

Section 39 – Abrasives, Dies, Jigs, Patterns And Moulds

PSTERR - SEC.39/Int.

References:

Act: Section 1 "apparatus", "use"; Part 3; Part 3 – Division 9; Section 89; Section 90; Section 99

PSTERR: Section 1 "obtain"

PSTR: Section 24

Bulletin PST 110

Interpretation (Issued: 2014/02; Revised: 2014/09)

Effective April 1, 2013, B.C. Reg. 117/2014 repeals PSTERR subsection 39(5). The repeal means that "small sellers" and "independent sales contractors" are eligible for the exemptions under PSTERR subsection 39(3) and PSTERR subsection 39(4). Prior to the amendment, "small sellers" and "independent sales contractors" were not able to claim the section 39 exemption because subsections 39(3) and 39(4) were prescribed for the purposes of:

subsection 89(2) [tax on acquisition of eligible tangible personal property] of the Act,
subsection 90(4) [tax on eligible tangible personal property brought into British Columbia] of the Act, and
subsection 99(6) [tax on acquisition of exclusive product by independent sales contractor] of the Act.

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 39 exemptions from tax for specified abrasives, dies, jigs, patterns, moulds and other items for use in the manufacture, production, service or repair of tangible personal property or real property, and moulds designed for use in food production for use in the manufacture or production of food in the course of the person’s business.

PSTERR - SEC.39(1)/R.1-R.3

(1) Die

R.1 Meaning Of The Word Form (Issued: 2014/04)

The word "form" in the definition of die refers to a pattern, shape, or outline.

R.2 Dies (Issued: 2014/04)

The following items are dies:

Punch and die sets.
Rubber, metal, and polymer dies/plates including dies/plates used for marking or stamping with ink.
Log marking hammer dies (used to stamp the farm licence numbers on the ends of the logs).
Nail gripper dies and nail headers.

R.3 TPP That Does Not Meet The Definition Of Die (Issued: 2014/04)

The following items are not considered dies:

Cutter blocks (nail manufacturing).
Thread cutting taps or dies or other thread cutting equipment.
Cutting tools known as hobs, shaping cutters, inserts, and broaches - they do not form a pattern for shaping or cutting, but rather are cutting tools guided and controlled by a machine.
Knife case, used to cut chopsticks from veneer.
Drill bits.
Band saw blades.
Router bits - router bits are used to gouge out or cut a groove or edge in the wood. While the width and the depth of the groove, as well as the sides (e.g., square, rounded, or v-shaped), are determined by the shape of the router bit, the overall length and pattern of the groove is machine and operator controlled. Router bits are similar to shaping cutters, which also do not qualify as dies.
Hole saws - these are saw blades made in a circular form of varying dimensions which are used with a drill in a similar manner as a drill bit. They are used to cut holes in various materials (e.g., holes in doors for door knob set, holes in campers for plumbing and vent outlets). A hole saw is not used to shape goods but rather is a specialized boring tool used to cut holes.
Ceramic windows - In the production of some laminated wood beam products, glued or resined veneer strips are fed through a square tunnel-shaped die that squeezes the strips into a beam. Two sides of the die are ceramic, allowing microwave radiation to pass through to cure the glue. The ceramic sides or windows are purchased separately and do not qualify as dies.
Thread rolling dies - Thread rolling dies are used to make items with threads, such as bolts and screws. However, rather than using a form to transfer the threads onto a blank, thread rolling dies impart the thread profile by pressing a machine controlled rotating die against the blank. As with thread cutting taps or dies, the threads are cut or imparted into the blank, not transferred via a form. Therefore, they do not qualify as dies.

PSTERR - SEC.39(1)/R.1-R.2

(1) Grinding Wheel

R.1 Grinding Activities (Issued: 2014/04)

Grinding is the removal of material through friction; an abrading action.

The use of a grinding wheel to sharpen saw blades is grinding.

The use of a grinding wheel to roughen tires is grinding (e.g., the use of polishing buffers or buffing rasps).

R.2 Non-Grinding Activities (Issued: 2014/04)

The use of abrasive cutting wheels, grinding cut off wheels or, cutting blades removes material through cutting and is not grinding.

The use of carbide burs and other burs removes material through cutting and is not grinding.

The use of roller mill tires removes material through crushing and is not grinding. R oller mill tires are large, smooth iron wheels used in the manufacture of cement. They crush material, such as clinker, into a fine powder in two ways. Either a tire rolls over the clinker to reduce it to powder, or the clinker is reduced to powder when it passes between two tires.

PSTERR - SEC.39(1)/R.1

(1) Jig

R.1 TPP That Meet The Definition Of Jig (Issued: 2014/04)

The following items are jigs:

Carriers used in the production of industrial sapphires - flat discs of various diameters and thicknesses. The carriers have notches cut into the edges and have holes of various shapes cut into the centre. Sapphire blanks are placed in the holes in the centre of the carrier. The carrier sits between two polishing surfaces, with which the carrier's teeth interlock. An abrasive slurry is added between the carrier and the upper and lower polishing discs and the polishing discs are rotated. Pressure between the discs and the carrier cause the abrasive slurry to polish the sapphire blanks. The thickness of the carrier determines the thickness of the final, polished sapphire blank. These carriers meet the definition of jig.

PSTERR - SEC.39(1)/R.1-R.2

(1) Mould

R.1 Moulds (Issued: 2014/04)

The following items are moulds:

Fibreglass moulds used to shape a kayak.

R.2 TPP That Does Not Meet The Definition Of Moulds (Issued: 2014/04)

The following items are not considered moulds:

Polyvinyl alcohol (PVA) film and bleeder cloth - both are used in manufacturing kayaks. The PVA film comes in bag form. The kayak laminate is placed in a fibreglass mould and the bag is placed over the laminate and mould. The film is held in place by "bleeder cloth" which is placed at the perimeter of the fibreglass mould and laminate to allow air to pass between them. The air between the film and the laminate is removed by a vacuum, causing the laminate to conform to the shape of the mould. Neither is a hollow form into which materials are placed to produce desired shapes, matrices, or cavities which shape or form goods in process. Therefore, they are not moulds.

PSTERR - SEC.39(3)/R.1-R.2

(3) Abrasives, Dies, Jigs, Patterns, Moulds etc.

R.1 Processing Glass Containers (Bottles And Jars) (Issued: 2014/04)

Machinery and equipment used to manufacture glass containers qualifies for the production machinery and equipment (PM&E) exemption provided that all the criteria under PSTERR section 92 [manufacturing] are met.

Process and Item Description:

The glass-making process transforms a gob of molten glass into a parison, which is a rough facsimile of a bottle. First, the hot molten gob falls by gravity into a blank, which forms the body of the parison. In some cases the blank has a built in funnel to guide the gob, and in other cases it does not. Built-in funnels are indistinguishable from the blank.

A ring and attached guide ring located at the bottom of the blank shape the neck of the parison and ensure that the rim of the bottle is level. One of two types of guide ring can be used. A regular guide ring comes into contact with the glass and forms the ceiling of the bottle, while a dummy guide ring does not come into contact with the glass and is mainly used to ensure the ring of the bottle is level. A baffle is placed on top of the blank, and shapes what becomes the bottom of the bottle (as it is later inverted).

A plunger is pushed through the guide ring into the blank mould, and this action forces the interior of the molten glass into its shape, either directly or by using forced air. The type of plunger used depends on the type of glass bottle being made:

press and blow process (jar style bottles) - The plunger presses itself into the molten glass to force it into the desired shape. The plunger gets very hot, as it comes into frequent contact with the parison in the press and blow process. Consequently, a cooler is placed in the plunger to keep it cool.
blow and blow process (bottles with narrow neck) - The plunger for most narrow necked bottles such as beer bottles is not wide enough to enter the parison. In this process, the pressure of forced air shapes the parison rather than the plunger itself.

After the plunger step, a blowhead is seated on top of the mould, which uses a final blow of air pressure to force the molten glass against the wall of the mould. Another part called a blowhead insert is sometimes used with the blowhead.

A thimble (or sleeve) is used to guide the plunger into the blank. In some cases the thimble or sleeve comes into contact with the gob of molten glass to form the rim of the bottle. In other cases, the thimble or sleeve does not come into contact with the glass (dummy thimble or sleeve).

After the parison is shaped, it is inverted into a mould, which forms the shape of the final product. The bottom of the mould forms the base of the bottle. Finally, takeouts (or tongs) are used to remove and transport the finished bottle or glass.

Tax Application:

The items described above have been reviewed to determine whether the exemption for molds, jigs and dies applies. They are listed below in the same order as they appeared above. Generally, items used to manufacture bottles are exempt when they shape or otherwise come into contact with the molten material, whereas other items used in the bottle making process are taxable. Please note that the application of tax to the items listed below is only in reference to PSTERR section 39. The items listed may be exempt under other provisions such as PSTERR section 92.

Application of Tax
Item	Tax Application	Role in Glass Making /Reason for Tax Application
Blank	Exempt	Forms the body of the parison (molten glass).
Blank with built-in Funnel	Exempt	Alternative parts used to form parison body.
Funnel (i.e., separate funnel)	Taxable	Guides the gob into the blank. Taxable if it is separate from the blank and does not assist in shaping the glass.
Ring	Exempt	Shapes the neck of what will become a bottle.
Guide Ring (regular)	Exempt	Forms the ceiling of the bottle and ensures the ring is level.
Dummy Guide Ring	Taxable	Also ensures that ring is level, but does not come into contact with glass.
Baffle	Exempt	Is located at the top of the blank that directly shapes the bottom of the glass, which is later inverted.
Plunger (press and blow process)	Exempt	Pushes through guide ring into blank mould in making a jar style of bottle. Shapes glass directly.
Cooler	Taxable	Located within plunger used in press and blow process.
Plunger (blow and blow process)	Taxable	Used in making a narrow neck style of bottle. Air is used to force glass into shape rather than plunger.
Blowhead and Blowhead Insert	Taxable	Neither part directly shapes the bottle as air is used to push the parison onto the walls of the mould.
Thimble or Sleeve (regular)	Exempt	Guides plunger into the blank. Is exempt as it comes into contact with the molten glass.
Dummy Thimble or Sleeve	Taxable	Taxable as it does not come into contact with the glass.
Mould	Exempt	The parison is inverted into the mold, which becomes the final shape of the product.
Bottom	Exempt	Forms the lower part of the bottle.
Takeout (or Tongs)	Taxable	Used to transport the finished bottle or glass. While they touch the glass, they are not used in shaping the final product.

R.2 Phototools (Issued: 2014/04)

Phototools used to provide the shape of the circuitry on circuit boards qualify as patterns.

A phototool is a negative image of the desired copper electrically conductive circuitry that will be imposed on a circuit board. Phototools are used in the manufacture of circuit boards. They are created from drawings of circuits which are transferred to photographic film. The image of the drawing is transferred to the board by shining light through the film (similar to a slide projector projecting an image onto a screen) and onto a sheet of copper-clad laminate (the board) which has been coated with light sensitive chemicals. The laminate board is subjected to a chemical bath which removes the cladding on the exposed portion of the board, leaving an image of the desired circuit on the board. The laminate board is then subjected to further manufacturing processes.

Section 40 – Photographers And Printers

PSTERR - SEC.40/Int.

References:

Act: Section 1 "use"; Part 3; Part 3 – Division 9; Section 89; Section 90; Section 99

PSTERR: Section 1 "obtain"

PSTR: Section 21; Section 24

Bulletin PST 109; Bulletin PST 126

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 40 exemptions from tax for film, photographic paper and chemicals obtained for use in developing film, and specified supplies obtained by printers and publishers for their own use in a printing or publishing process.

Subsection 40(1) provides that film, photographic paper and chemicals obtained for use in developing film are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use], if the film, photographic paper or chemicals are obtained

(a) by a person who is

(i) a commercial photographer, or

(ii) in the business of photograph processing or finishing, and

(b) for use in the course of the person's business.

Subsection 40(2) provides that the following are exempt from tax imposed under Part 3 of the Act, other than Division 9, if obtained by printers or publishers for their own use in a printing or publishing process:

(a) artwork;

(b) blankets and screens used in the printing process to transfer ink to the product being printed, but not including frames;

(d) engravings;

(e) film;

(f) flats;

(g) negatives;

(h) paste ups;

(i) photoconductor drums;

(j) photographs;

(k) plates;

(l) signatures;

(m) slides;

(n) transparencies;

(o) typesetting products.

Subsection 40(3) provides that materials obtained by printers or publishers for their own use in the manufacture or production of any of the items described in PSTERR subsection 40(2) for their own use in a printing or publishing process are exempt from tax imposed under Part 3 of the Act, other than Division 9.

Subsection 40(4) provides that PSTERR subsections 40(1), 40(2) and 40(3) are prescribed for the purposes of the following provisions of the Act:

(a) subsection 89(2) [tax on acquisition of eligible tangible personal property] of the Act;

(b) subsection 90(4) [tax on eligible tangible personal property brought into British Columbia] of the Act;

PSTERR - SEC.40(2)/R.1-R.6

(2) Printing and Publishing

R.1 Imprinting Images On T-Shirts, Mugs, Pens And Similar Items (Issued: 2014/04)

Persons who use a screen printing, pad printing or other printing process to print images on T-shirts, pens, mugs and other items qualify as printers for the purposes of PSTERR subsection 40(2). Accordingly, such printers may obtain the prescribed items exempt of tax for the printer's own use in a printing process.

R.2 Tangible Storage Mediums (Issued: 2014/04)

Tangible storage mediums (e.g., USB drives, memory cards, CDs, DVDs) used for transferring and storing images in a printing or publishing process are not prescribed as exempt from tax under PSTERR subsection 40(2).

R.3 Colour Separations (Issued: 2014/04)

Colour separation refers to the procedures whereby a full colour original is photographed or scanned through colour filters that sort out the colours into the different negatives or plates required for printing. The resulting negatives or plates are used by printers in sequence to produce the full colour picture on the product being printed.

Colour separations are a type of negative or plate and may be obtained exempt from tax by printers or publishers for their own use in a printing or publishing process.

R.4 Pre-Press Items Used Outside BC For Printed Materials Shipped Into BC (Issued: 2014/04)

Pre-press is the term used in the printing and publishing industries for the processes and procedures that occur between the creation of a print layout and the final printing.

PSTERR subsection 40(2) exempts pre-press items (e.g., artwork, typeset) when obtained by printers or publishers for their own use in a printing or publishing process. This exemption does not allow for a reduction in the taxable value of publications printed outside the province and subsequently brought into the province for use.

Section 10 [original purchase price of tangible personal property] of the Act provides that the purchase price for out-of-province purchases includes the costs and expenses incurred by the user before use of the TPP in the province. As the costs of the pre-press materials are costs incurred by the user before use in the province, they are included as part of the purchase price. When pre-press items are purchased out-of-province by a printer or publisher, the items qualify for the exemption only if they are subsequently brought or sent into the province by the printer or publisher for that person's own use in a printing or publishing process in the province.

R.5 Emulsions And Removers Used In The Screen Printing Process (Issued: 2014/04)

In a screen printing process, the stretched mesh (screen) is covered with an emulsion, which outlines the image to be printed. After the printing process is complete, removers are used to strip off the emulsion so that the screen can be reused.

These emulsions qualify for exemption under PSTERR paragraph 40(2)(e) as they are used to produce a likeness on the exempt screen for use in printing a particular image, and thereby qualify under the exemption for film. Removers do not qualify for the exemption because they are cleaning agents used to remove the image from the screen after the printing process is complete.

R.6 Font Software (Issued: 2014/04)

Font software and type manager software do not qualify for exemption as a typesetting product under PSTERR paragraph 40(2)(o). Printers and publishers are required to pay tax on this software.

The dictionary defines typesetting as "the act or process of setting type". Type is defined as "a piece of metal, or sometimes wood, with a raised letter or character on its upper surface which, when inked and pressed against a piece of paper or other material, as in a printing press, leaves an ink impression on its face". While font software and type manager software facilitate the production of electronic pre-press or print copy, they do so without the aid of types. Because types are not used, the software is not a typesetting product.

Section 41 – Prototypes

PSTERR - SEC.41/Int.

References:

Act: Section 1 "prototype"; Section 141

PSTERR: Section 1 "Part 3 software"

PSTR: Section 24

Bulletin PST 209

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 41 the prescribed tangible personal property and prescribed purpose for the purposes of the prototype exemptions from tax under paragraphs 141(1)(d) and 141(1)(e) of the Act.

Subsection 41(1) provides that for the purposes of paragraph 141(1)(d) [exemptions in relation to software for prototypes] of the Act, Part 3 software that is not specifically designed for a prototype referred to in that provision is prescribed tangible personal property.

Subsection 41(2) provides that for the purposes of paragraphs 141(1)(d) and 141(1)(e) of the Act, making a copy of a prototype solely for the purpose of testing the prototype as part of the research and development activities referred to in the applicable provision is a prescribed purpose.

Section 42 – Ships’ Stores

PSTERR - SEC.42/Int.-R.4

References:

Act: Section 1 "liquor"; Part 3

PSTR: Section 24

PSTERR: Section 1 "alcohol-containing food product"

Bulletin PST 108

Interpretation (Issued: 2014/02; Revised: 2016/06)

Effective April 1, 2013, B.C. Reg. 166/2016 repeals and replaces PSTERR section 42 consequential to the addition of the PSTERR section 1 term "alcohol-containing food product".

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 42 that ships’ stores, are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act if delivered to commercial vessels of more than 500 tons gross that normally operate in extraterritorial waters.

The exemption does not apply to liquor, other than an alcohol-containing food product (e.g. liqueur-filled chocolates).

R.1 Items Considered Ships' Stores (Issued: 2014/07)

Ships' stores are generally inventory carried on board of a ship to meet its daily requirements, such as food, water, cleaning supplies, medical supplies, safety supplies, tools, etc. The following items are examples of ships' stores for the purposes of PSTERR section 42 and are exempt when delivered to commercial vessels of more than 500 tons gross that normally operate in extra-territorial waters:

Antifreeze
Batteries
Bedding
Buttons
Candles
Carpets
Chemicals and gasses
Cleaning supplies and equipment
Clocks
Cloths
Computers and computer peripherals
Container doors/gates (see R.4)
Container liners/bags (see R.4)
Containers
Cutlery, dishes and cooking utensils
Flowers
Funnels
Furniture (moveable)
Garbage containers
Gloves
Glue
Goggles
Laundry supplies
Lights and lamps (portable)
Linen
Lubricants
Matches and lighters
Mats
Painting supplies
Pallets
Paper goods
Refrigerant
Rugs
Salt
Sand
Solvent
Stationery
String
Tools (portable)
Uniforms
Wax
Welding supplies

R.2 "Normally Operating In Extraterritorial Waters" (Issued: 2014/07)

The exemption for ships' stores applies to vessels of more than 500 tons gross that "normally operate in extra-territorial waters". For the purposes of this exemption, extra-territorial waters are those lying outside of BC. According to case law, the boundary of BC ends at the low water mark, with the exception of inland water, including harbours, bays, estuaries and other waters lying "between the jaws of the land" or from headland to headland.

For the purposes of the exemption for ships' stores, BC waters include:

inland waters (e.g., lakes and rivers);
waters in coastal bays, inlets, etc., as marked from headland to headland;
Hecate and Johnstone Straits;
The Canadian portions of Georgia and Juan de Fuca Straits; and
Dixon Entrance and Queen Charlotte Sound.

Because the provision uses the term "normally", vessels must usually or typically operate outside of BC waters to qualify. The exemption does not apply to any vessel that operates primarily in BC waters. Examples are as follows.

A vessel operates on a regular route that is 45% in BC waters and 55% in Alaskan waters - exemption applies.
A vessel operates in BC waters and only occasionally operates in Alaskan waters - exemption does not apply.
A vessel operates exclusively in BC waters for nine months of each year and exclusively in Alaskan waters for three months of each year - exemption does not apply.

R.3 Sales To Ship Personnel (Issued: 2014/07)

Sales to personnel aboard ships docked in a BC harbour (e.g. Vancouver harbour) are subject to PST because they are not ships' stores when title and possession passes immediately to the personnel.

R.4 Bracing, Packing Materials, And Doors And Liners Temporarily Attached To Shipping Containers (Issued: 2014/07)

Bracing and Packing Materials

Bracing and packing materials purchased for the purpose of dunnage are considered ships' stores for the purposes of PSTERR section 42 provided the materials are non-returnable and are used solely on board the vessel.

Temporary Doors and Liners

Containers used to ship goods are considered ships' stores for the purposes of PSTERR section 42.

Doors and gates are used to assist with the loading of the contents (e.g., grain, malt) into the container and to keep the contents dry during transport. They are placed directly behind the container's own metal doors.

Liners or bags are temporarily fastened with hooks and duct tape throughout the container to ensure that the material being shipped is not contaminated or mixed with other substances.

Both the doors and liners are removed and discarded at the destination point after a one-time use. Doors/gates and liners/bags that are attached to the containers also qualify for exemption if they are non-returnable and used solely on board the vessel.

Section 43 – Bottles For Milk Products

PSTERR - SEC.43/Int.

References:

Act: Section 1 "retail sale", "use"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "obtain"

PSTR: Section 24

Bulletin PST 305

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 43 that bottles are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use], if the bottles are

(a) obtained for use to hold a milk product that is sold at a retail sale, and

(b) returnable and reusable.

Division 10 — Farming, Fertilizers, Fishing and Aquaculture

Section 44 – Animals And Plants

PSTERR - SEC.44/Int.

References:

Act: Part 3

PSTR: Section 24

Bulletin PST 127; Bulletin PST 128

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 44 that the following are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act:

(a) living animals of a kind the products of which ordinarily constitute food for human consumption;

(b) living plants and trees of a kind the products of which ordinarily constitute food for human consumption.

Section 45 – Feed

PSTERR - SEC.45/Int.-R.2

References:

Act: Section 1 "use"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "obtain"

Bulletin PST 127; Bulletin PST 128

Interpretation (Issued: 2014/02; Revised: 2014/09)

Effective April 1, 2013, B.C. Reg. 117/2014 amends PSTERR section 45 by:

adding PSTERR subsections 45(0.1) and 45(3),
adding PSTERR paragraphs 45(1)(c) and 45(1)(d), and
repealing and replacing PSTERR paragraph 45(1)(a).

The intent of the above amendments is to define the term "animal" for the purposes of PSTERR section 45 and to provide exemptions for the following TPP:

vitamins, dietary supplements and adjuncts obtained for consumption by animals, and
drugs and medicaments obtained for use to treat animals.

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 45 exemptions from tax for feed obtained for use to feed specified animals, and for grain, mill and other agricultural feeds and seeds obtained for use solely for an agricultural purpose.

R.1 Definition of Agricultural Purpose (Issued: 2020/06)

Section 45(1)(b) provides an exemption for grain, mill and other agricultural feeds and seeds obtained for use solely for an agricultural purpose. The exemption is subject to the exclusion set out in section 45(2) and does not apply to grain, mill and other agricultural feeds and seeds that are obtained for use to feed a bird of a kind the products of which do not ordinarily constitute food for human consumption, or a household pet.
There is no definition of agricultural purpose in the PSTA or PSTERR. Therefore, the ministry interprets “agricultural” with the ordinary meaning of the word. Dictionaries generally define “agricultural” as relating to agriculture. “Agriculture”, in turn, is often defined as the science or practice of farming, including cultivation of the soil for the growing of crops and the rearing of animals to provide food, wool and other products.

From these definitions the ministry interprets agricultural purpose to be the cultivating of land for growing crops and the rearing of animals to provide food, wool or other products.

Based on this definition, agricultural purpose includes the care of animals (e.g. cows, pigs, goats, sheep and llamas), provided they are being reared to provide food, wool or other products. Additionally, agricultural purpose includes the caring of animals that are used in cultivating land or rearing animals to provide food, wool or other products (e.g. farm or ranch horses).

However, agricultural purpose does not include the care of wildlife or animals not used in cultivating land or rearing animals to provide food, wool or other products, such as race horses, equestrian horses and carriage horses.

Additionally, seeds when purchased for an agricultural purpose are exempt from PST. Based on the definition above, growing crops is an agricultural purpose. As there is no definition of crop in the PSTERR, the ministry uses the ordinary meaning of the word. The dictionary defines crop as a plant or plant product that is grown and harvested.

Based on these definitions of agricultural purpose and crop, vegetable, herb, flower and grass seeds are exempt from PST because they are purchased to grow a crop. Generally, vegetables and herb seeds are purchased to grow a plant that will be harvested as food for human consumption, while flowers and grass seeds are purchased to grow a crop that could be harvestable. This applies regardless of who purchases the seeds.

R.2 Fungal Mycelium (Issued: 2020/07)

Seeds when obtained for an agricultural purpose (i.e. to grow or cultivate land) are exempt from PST. The general purpose of the exemption is to exempt seeds that grow into food for human consumption or grow to be a plant that is harvestable.

On a narrow interpretation of the word “seed”, fungal mycelium is not technically a plant seed and mushrooms are not technically plants. However, for the purposes of PST, fungal mycelium used to grow mushrooms for human consumption are considered “seeds” that grow into mushrooms for human consumption.

With this understanding of fungal mycelium they meet the intention of the exemption as the fungal mycelium is being used to grow food for human consumption. As it meets the intention of the exemption fungal mycelium used to grow mushrooms for human consumption are exempt from PST.

It is important to note that fungal mycelium is often purchased in mushroom growing kits or in cultures that include taxable goods (such as wood dowel pegs for growing or other nutrient growing medium) as part of the item for sale. The general rules for bundle sales would apply in this case.

Section 46 – Farmers

PSTERR - SEC.46/Int.-R.4

References:

Act: Section 1 "collector", "director", "use", "vehicle"; Section 30; Part 3; Part 3 – Division 9; Part 3 – Division 11; Section 145

PSTERR: Section 1 "obtain", "qualifying farmer"; Section 57; Section 129; Schedule 2

PSTR: Section 21; Section 24

Bulletin PST 101

Interpretation (Issued: 2014/02; Revised: 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends PSTERR subsection 46(5) to replace “a form acceptable to the director” with “a form specified by the director.” The director has specified that the form that must be used to claim the exemption is a Certificate of Exemption – Farmer (FIN 458).

Effective April 1, 2013, B.C. Reg. 97/2013 as amended by OIC 441/2013 provides under PSTERR section 46 exemptions from tax for the tangible personal property listed in PSTERR Schedule 2, and qualifying parts for that tangible personal property, if obtained by a qualifying farmer for use solely for a farm purpose.

Subsection 46(1) provides that in PSTERR section 46, "qualifying part" means a part that is designed for use

(a) as a replacement part for tangible personal property described in PSTERR Schedule 2 [Tangible Personal Property for Farm Purpose], or

(b) in the manufacture or repair of tangible personal property described in PSTERR Schedule 2,

but does not include a part that is suitable for use for any of the purposes referred to in PSTERR paragraph 46(1)(a) or PSTERR paragraph 46(1)(b) by reason only of the general nature of the part's design and manufacture.

Subsection 46(2) provides that tangible personal property described in PSTERR Schedule 2 is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use] and Division 11 [Energy Products], if the tangible personal property is obtained by a qualifying farmer for use solely for a farm purpose.

Subsection 46(3) provides that a qualifying part is exempt from tax imposed under Part 3 of the Act, other than Division 9, if

(a) the qualifying part is obtained by a qualifying farmer for use

(i) as a replacement part for tangible personal property described in PSTERR Schedule 2, or

(ii) in the manufacture or repair of tangible personal property described in PSTERR Schedule 2, and

(b) the tangible personal property referred to in PSTERR subparagraph 46(3)(a)(i) or PSTERR subparagraph 46(3)(a)(ii) is to be used by a qualifying farmer solely for a farm purpose.

Subsection 46(4) provides that PSTERR subsections 46(2) and 46(3) are prescribed for the purposes of paragraph 145(1)(a) [provisions providing exemptions in relation to tangible personal property] of the Act.

Subsection 46(5) provides that for the purposes of subsection 145(1.1) [evidence required to claim certain exemptions in relation to tangible personal property or software] of the Act, in relation to a person who alleges that tangible personal property is exempt under PSTERR subsection 46(2) or 46(3), the collector is required to obtain

(a) the name, address, card number and expiry date as recorded on a BC Farmer Identity Card issued to that person by the BC Agriculture Council, or

(b) a declaration in a form acceptable to the director (a Certificate of Exemption – Farmer (FIN 458)).

Subsection 46(6) provides that for the purposes of subsection 30(7) [evidence required to claim exemption in relation to tax payable in respect of vehicle] of the Act, in relation to a person who alleges that a vehicle is exempt under PSTERR subsection 46(2), the Insurance Corporation of British Columbia is required to obtain

(a) the name, address, card number and expiry date as recorded on a BC Farmer Identity Card issued to that person by the BC Agriculture Council, or

(b) a declaration in a form acceptable to the director (a Certificate of Exemption – Farmer (FIN 458)).

R.1 Distinction Between "Farm Purposes" And Commercial Operations (Issued: 2014/08)

A qualifying farmer is exempt from paying PST on TPP described in Schedule 2 if obtained for use solely for a "farm purpose". A farm purpose is distinct from a commercial operation or activity. Qualifying farmers are not exempt from paying PST on TPP if obtained for a commercial operation.

Commercial operations are activities of a sales or manufacturing nature, which extend beyond those activities normally associated with farming. Activities that are for "farm purposes" include land preparation, and planting, growing, raising, grading and packaging of a farm's own produce. However, the retail sale of these sorted or packaged products, or a further processing or manufacturing of these products are commercial activities, for which the PSTERR section 46 exemption does not apply.

For example, electricity is listed in PSTERR Schedule 2, Table 9. If electricity is used solely to operate equipment that packages a qualifying farmer's own produce, the electricity may be purchased exempt from PST. However, if the farmer uses the electricity to package produce from another source, including another farm, or uses the electricity to light a retail store on the farm property, the electricity is not exempt from tax under PSTERR section 46.

R.2 Forestry Companies - Seedling "Farms" (Issued: 2014/08)

Growing seedlings is considered a farm purpose for the purpose of PSTERR subsection 46(2). As a result, forestry companies that own or lease land classified as farm land under the Assessment Act and use that land to grow seedlings are eligible to purchase TPP described in PSTERR Schedule 2 exempt from PST. They are eligible whether they grow seedlings on farm land and then transplant the live seedlings elsewhere, or sell the live seedlings.

R.3 Computers Used To Control Exempt Systems (Issued: 2014/08)

To qualify for exemption under PSTERR subsection 46(2), computers that are used to control systems described in PSTERR Schedule 2 must be an integrated component of the system and must be used solely for that purpose.

For example, PSTERR Schedule 2, Table 7, Item 1 describes artificial lighting systems for use in greenhouses. A computer used to control an artificial lighting system is only exempt if it is an integrated component of the artificial lighting system and not used for another purpose. A laptop that is used to control a lighting system and also used for inventory of plants in the greenhouse is not eligible for exemption under PSTERR subsection 46(2).

R.4 Horses Used On A Farm (Issued: 2024/03)

PSTERR Schedule 2 Table 14 states "horses, other than race horses and equestrian horses" are exempt from PST under PSTERR section 46 if the purchaser or lessor is a qualifying farmer, and the horse is used solely for a farm purpose (e.g. plowing and hauling farm equipment).

Farm Horses

Horses used to perform work on a farm are used for a farm purpose and qualify for the exemption. This includes draught horses used for pulling and hauling farm machinery and equipment.

Breeding Horses

Horses (other than race horses) used for breeding purposes can be purchased by a qualifying farmer exempt from tax, provided that the horses are used "solely for a farm purpose".

Breeding horses (other than race horses) for use on the farm, or for resale, qualifies as a farm purpose. This includes horses boarded by a farmer for breeding purposes that are owned by another person. However, breeding horses to be used by the farmer for pleasure riding, carriage rides, equestrian, show jumping or for racing does not meet the requirement of "used solely for a farm purpose".

As noted above, breeding horses (other than race horses) for the sole purpose of resale qualifies as a farm purpose. This includes training horses for their intended purpose, provided that the horses are not intended for racing (breeding and training race horses is not a farm purpose).

Taxable Use

Horses purchased or leased for use on trail rides, carriage rides, equestrian, show jumping, dressage or for racing are not used solely for a farm purpose and are taxable.

Horses used for a taxable purpose that were originally purchased exempt become subject to tax under PSTA section 82 – tax if property used for a new purpose.

Generally, equipment used to board or train horses owned by another person is not used for a farm purpose.

Section 47 – Fertilizer

PSTERR - SEC.47/Int.

References:

Act: Section 1 "substantially", "use"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "obtain"

PSTR: Section 24

Bulletin PST 128

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 as amended by OIC 441/2013 provides under PSTERR section 47 exemptions from tax for fertilizer and other specified materials when obtained by an individual or by a person other than an individual.

Subsection 47(1) provides that in PSTERR section 47, "fertilizer" means a substance or mixture of substances that contains nitrogen, phosphorus, potassium or other plant nutrients and is substantially advertised or marketed as a plant food, but does not include substances or mixtures of substances that

(a) contain 50 percent or more by volume of sand, gravel, topsoil, fill, weed control chemicals, fungicides or a substance that is not a plant nutrient, or any combination of them, or

(b) are registered under the Pest Control Products Act (Canada).

Subsection 47(2) provides that the following tangible personal property is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act if the tangible personal property is obtained by an individual:

(a) agricultural lime;

(b) fertilizer;

(d) organic substances if the substances are advertised or marketed as compost aids or compost accelerators;

(e) peat, other than peat pellets and compostable pots made from peat;

(f) plant hormones, microorganisms and enzymes, or a mixture of plant hormones, microorganisms or enzymes, if advertised or marketed as a plant regulator;

(g) spaghnum;

(h) wood ash or charcoal if the wood ash or charcoal is advertised or marketed as a soil amendment.

Subsection 47(3) provides that the following tangible personal property is exempt from tax imposed under Part 3 of the Act, other than Division 9 [Change in Use], if the tangible personal property is obtained by a person, other than an individual, for an agricultural purpose:

(a) agricultural lime;

(b) fertilizer;

(d) organic substances if the substances are advertised or marketed as compost aids or compost accelerators;

(e) peat, other than peat pellets and compostable pots made from peat;

(f) plant hormones, microorganisms and enzymes, or a mixture of plant hormones, microorganisms or enzymes, if advertised or marketed as a plant regulator;

(g) spaghnum;

(h) wood ash or charcoal if the wood ash or charcoal is advertised or marketed as a soil amendment.

Subsection 47(4) provides that the following are exempt from tax imposed under Part 3 of the Act, other than Division 9, if obtained for use in landscaping or as bedding for animals:

(a) sawdust;

(b) straw;

(d) wood shavings.

Subsection 47(5) provides that the following tangible personal property is exempt from tax imposed under Part 3 of the Act if the tangible personal property is advertised or marketed as a growing medium for plants and is obtained by an individual:

(a) compostable material basket liners and growing mats made only from organic materials;

(b) compostable pots made only from organic materials;

(d) humus;

(e) orchid bark;

(f) peat pellets;

(g) perlite;

(h) potting soil and soilless potting mix unless the soil or mix

(i) contains 50 percent or more by volume of sand, gravel, topsoil, fill, weed control chemicals, fungicides or any combination of them, or

(ii) is registered under the Pest Control Products Act (Canada);

(i) vermiculite.

Subsection 47(6) provides that the following tangible personal property is exempt from tax imposed under Part 3 of the Act, other than Division 9, if the tangible personal property is advertised or marketed as a growing medium for plants and is obtained by a person, other than an individual, for an agricultural purpose:

(a) compostable material basket liners and growing mats made only from organic materials;

(b) compostable pots made only from organic materials;

(d) humus;

(e) orchid bark;

(f) peat pellets;

(g) perlite;

(h) potting soil and soilless potting mix unless the soil or mix

(i) contains 50 percent or more by volume of sand, gravel, topsoil, fill, weed control chemicals, fungicides or any combination of them, or

(ii) is registered under the Pest Control Products Act (Canada);

(i) vermiculite.

Section 48 – Commercial Fishers

PSTERR - SEC.48/Int.-R.2

References:

Act: Section 1 "boat", "collector", "director", "use"; Part 3; Part 3 – Division 9; Section 145

PSTERR: Section 1 "fishing equipment", "obtain", "qualifying commercial fisher"; Section 57; Section 130; Schedule 3

PSTR: Section 21; Section 24

Bulletin PST 102

Interpretation (Issued: 2014/02; Revised: 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends PSTERR subsection 48(5) to replace “a form acceptable to the director” with “a form specified by the director.” The director has specified that the form that must be used to claim the exemption is a Certificate of Exemption – Commercial Fisher (FIN 455).

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 48 exemptions from tax for boats, fishing nets and fishing equipment (including, but not limited to, the tangible personal property listed in PSTERR Schedule 3), and qualifying parts for the repair or reconditioning of a boat, fishing net or fishing equipment, if obtained by a qualifying commercial fisher for use solely for a commercial fishing purpose.

Subsection 48(1) provides that in PSTERR section 48, "qualifying part" means a part that is designed for use in the repair or reconditioning of a boat, fishing net or fishing equipment, but does not include a part that is suitable for use for either of those purposes by reason only of the general nature of the part's design and manufacture.

Subsection 48(2) provides that boats, fishing nets and fishing equipment are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use], if the boat, fishing net or fishing equipment is obtained by a qualifying commercial fisher for use solely for a commercial fishing purpose.

Subsection 48(3) provides that a qualifying part is exempt from tax imposed under Part 3 of the Act, other than Division 9, if

(a) the qualifying part is obtained by a qualifying commercial fisher for use in the repair or reconditioning of a boat, fishing net or fishing equipment, and

(b) the boat, fishing net or fishing equipment referred to in paragraph (a) is to be used by a qualifying commercial fisher solely for a commercial fishing purpose.

Subsection 48(4) provides that PSTERR subsections 48(2) and 48(3) are prescribed for the purposes of paragraph 145(1)(a) [provisions providing exemptions in relation to tangible personal property] of the Act.

Subsection 48(5) provides that for the purposes of paragraph 145(1.1)(a) [evidence required to claim certain exemptions in relation to tangible personal property or software] of the Act, in relation to a person who alleges that tangible personal property is exempt under PSTERR subsection 48(2) or 48(3), the collector is required to obtain a declaration in a form acceptable to the director (a Certificate of Exemption – Commercial Fisher (FIN 455)).

R.1 Fish Packing Boats (Issued: 2014/07)

Some commercial fishers may use packing boats to pack and transport their catch, allowing them to remain on the fishing grounds for an extended period of time. A "qualifying commercial fisher" may purchase a packing boat exempt from PST as a boat purchased "solely for a commercial fishing purpose". This exemption also applies to packing boats that are used for packing as well as other fishing related activities, such as fleet control and relaying messages between fishing boats.

However, a person who only holds a prefix "D" license (packing) issued by Fisheries and Oceans Canada is not a "qualifying commercial fisher" and is not eligible to purchase a packing boat exempt from PST. See PSTERR SEC.1/QUALIFYING COMMERCIAL FISHER/R.2.

R.2 Joint Purchases Of Fishing Boats (Issued: 2014/07)

When a "qualifying commercial fisher" and a non-qualifying fisher (or other non-qualifying person) purchase a fishing boat together for use solely for a commercial fishing purpose, the non-qualifying fisher must pay PST on the portion of the purchase price of the boat that is attributable to their ownership interest. This ownership interest is assumed to be 50% each unless otherwise stated.

If, for example, the qualifying commercial fisher has an ownership interest in the boat of 75% and the non-qualifying fisher has an ownership interest of 25%, the non-qualifying fisher must pay PST on 25% of the total purchase price of the boat. This tax application ensures the "qualifying commercial fisher" obtains the exemption without extending the exemption to the non-qualifying purchasers.

This also applies when the boat is purchased jointly by spouses, where one spouse is a "qualifying commercial fisher" and the other is not.

Section 49 – Aquaculturists

PSTERR - SEC.49/Int.

References:

Act: Section 1 "collector", "director", "use", "vehicle"; Section 30; Part 3; Part 3 – Division 9; Section 145

PSTERR: Section 1 "obtain", "qualifying aquaculturist"; Section 57; Section 131; Schedule 4

PSTR: Section 21; Section 24

Bulletin PST 103

Interpretation (Issued: 2014/02; Revised: 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends PSTERR subsection 49(5) to replace “a form acceptable to the director” with “a form specified by the director.” The director has specified that the form that must be used to claim the exemption is a Certificate of Exemption – Aquaculturist (FIN 456).

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 49 exemptions from tax for the tangible personal property listed in PSTERR Schedule 4, and qualifying parts for that tangible personal property, if obtained by a qualifying aquaculturist for use solely for an aquaculture purpose.

Subsection 49(1) provides that in PSTERR section 49, "qualifying part" means a part that is designed for use

(a) as a replacement part for tangible personal property described in PSTERR Schedule 4 [Tangible Personal Property for Aquaculture Purpose], or

(b) in the repair of tangible personal property described in Schedule 4,

but does not include a part that is suitable for use for either of the purposes referred to in PSTERR paragraph 49(1)(a) or 49(1)(b) by reason only of the general nature of the part's design and manufacture.

Subsection 49(2) provides that tangible personal property described in Schedule 4 is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use], if the tangible personal property is obtained by a qualifying aquaculturist for use solely for an aquaculture purpose.

Subsection 49(3) provides that a qualifying part is exempt from tax imposed under Part 3 of the Act, other than Division 9, if

(a) the qualifying part is obtained by a qualifying aquaculturist for use

(i) as a replacement part for tangible personal property described in PSTERR Schedule 4, or

(ii) in the repair of tangible personal property described in PSTERR Schedule 4, and

(b) the tangible personal property referred to in PSTERR subparagraph 49(3)(a)(i) or 49(3)(a)(ii) is to be used by a qualifying aquaculturist solely for an aquaculture purpose.

Subsection 49(4) provides that PSTERR subsections 49(2) and 49(3) are prescribed for the purposes of paragraph 145(1)(a) [provisions providing exemptions in relation to tangible personal property] of the Act.

Subsection 49(5) provides that for the purposes of paragraph 145(1.1)(a) [evidence required to claim certain exemptions in relation to tangible personal property or software] of the Act, in relation to a person who alleges that tangible personal property is exempt under PSTERR subsection 49(2) or 49(3), the collector is required to obtain a declaration in a form acceptable to the director (a Certificate of Exemption – Aquaculturist (FIN 456)).

Subsection 49(6) provides that for the purposes of paragraph 30(7)(a) [evidence required to claim exemption in relation to tax payable in respect of vehicle] of the Act, in relation to a person who alleges that a vehicle is exempt under PSTERR subsection 49(2), the Insurance Corporation of British Columbia is required to obtain a declaration in a form acceptable to the director (a Certificate of Exemption – Aquaculturist (FIN 456)).

Division 11 — Other Exemptions in Relation to Tangible Personal Property

Section 50 – Transfer Due To Dissolution Of Marriage Or Relationship

PSTERR - SEC.50/Int.-R.1

References:

Act: Part 3

PSTERR: Section 57

PSTR: Section 24

Bulletin PST 200

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 50 that an individual is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act in respect of tangible personal property transferred to the individual from a spouse or former spouse of the individual under

(a) an agreement dividing property under Part 5 [Property Division] or Part 6 [Pension Division] of the Family Law Act,

(b) a written separation agreement, or a marriage agreement, referred to in the Family Relations Act, or

R.1 Vehicles Transferred Where Section 50 Does Not Apply (Issued: 2014/07)

If on marital breakdown two spouses each have a 50% interest in a vehicle and the vehicle is transferred (in situations where PSTERR section 50 does not apply) into the sole name of one of the spouses, the spouse who is obtaining the full interest in the vehicle must pay PST on 50% of the vehicle's value (unless another exemption applies).

If on marital breakdown one spouse solely owns a vehicle and the vehicle is transferred (in situations where PSTERR section 50 does not apply) out of their name and into the name of their spouse, the spouse receiving the full interest must pay tax on 100% of the vehicle's value (unless another exemption applies).

Section 51 – Poppies, Wreaths And Natural, Cut Christmas Trees

PSTERR - SEC.51/Int.

References:

Act: Part 3

PSTR: Section 24

Bulletin PST 128

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 51 that the following are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act:

(a) Remembrance Day poppies and wreaths;

(b) natural, cut evergreen trees sold as Christmas trees.

Section 52 – Exemptions In Relation To Food – Liquor and Food Products Containing Cannabis Not Exempt

PSTERR - SEC.52/Int.

References:

Act: Section 1 "liquor"; Section 139

PSTR: Section 24

PSTERR: Section 1 "alcohol-containing food product"

Bulletin PST 206

Interpretation (Issued: 2014/02; Revised: 2021/07)

Effective October 17, 2018, B.C. Reg. 212/2018 repeals and replaces PSTERR section 52. The new provision prescribes food products containing cannabis for the purposes of section 139(a) [exclusions from exemptions in relation to food] of the Act. As a result, it excludes cannabis from the exemption for food products. The exclusion of liquor from the exemption for food, other than alcohol-containing food products, remains unchanged.

Effective April 1, 2013, B.C. Reg. 166/2016 amends PSTERR section 52 consequential to the addition of the PSTERR section 1 term "alcohol-containing food product".

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 52 that for the purposes of paragraph 139(a) [exclusions from exemptions in relation to food] of the Act, liquor is prescribed as a food product excluded from the exemption under that section.

Section 53 – Dry Ice

PSTERR - SEC.53/Int.

References:

Act: Part 3

PSTR: Section 24

Bulletin PST 200

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 53 that dry ice is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act.

Section 54 – Gold, Silver And Platinum

PSTERR - SEC.54/Int.-R.1

References:

Act: Section 1 "purchase price"; Part 3

PSTERR: Section 1 "obtain"

PSTR: Section 24

Bulletin PST 200

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 54 that gold, silver or platinum in the form of bullion or coin is exempt from tax imposed under

Part 3 [Taxes in Relation to Tangible Personal Property] of the Act unless the bullion or coin is obtained for a purchase price greater than the market value of its gold, silver or platinum content.

For example, collector’s coins.

R.1 Collector Coins (Issued: 2014/04)

Whether or not the purchase of a coin is subject to tax is determined by the factors making up its purchase price. Bullion coins are not taxable when they are sold for a purchase price that is equal to the current market value of their gold, silver, or platinum content (the current market value includes a nominal handling fee). However, numismatic or collector coins are taxable because the purchase price contains a premium in addition to the market value of the metal content.

Section 55 – Exemptions In Relation To Transportation

PSTERR - SEC.55/Int.

References:

Act: Section 1 "multijurisdictional vehicle", "trailer", "use"; Part 3; Part 3 – Division 9; Section 145

PSTERR: Section 1 "obtain"

PSTR: Section 24

Bulletin PST 108; Bulletin PST 134; Bulletin PST 135; Bulletin PST 200; Bulletin PST 204

Interpretation (Issued: 2014/02; Revised: 2021/10, 2024/09)

Effective April 21, 2021, OIC 261/2021, amended PSTERR section 55 by adding paragraphs 55(1)(b.1) and (b.2) to provide exemptions from PST for specified electric bicycles and tricycles, and conversion kits used to electrify conventional bicycles and tricycles.

Effective February 19, 2020, B.C. Reg. 243/2020 amends PSTERR subsection 55(1) by adding paragraph (c.1), which provides that aircraft that are powered solely by electricity, and which are not remotely piloted, are exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act. The exemption also applies to parts for those aircraft.

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 55 exemptions from tax for specified transportation-related tangible personal property.

Subsection 55(1) provides that the following are exempt from tax imposed under Part 3 of the Act:

(a) non-motorized bicycles;

(b) non-motorized tricycles, each wheel of which has a diameter of 350 mm or more;

(d) self-propelled vessels of more than 500 tons gross.

Subsection 55(2) provides that the following are exempt from tax imposed under Part 3 of the Act, other than Division 9 [Change in Use]:

(a) tangible personal property, other than an aircraft or a part for an aircraft, obtained by a person operating a commercial airline for use during the airline's interprovincial or international flights by

(i) the airline's passengers, or

(ii) the airline in serving its passengers;

(b) trailers obtained for use solely with multijurisdictional vehicles;

(i) a multijurisdictional vehicle, or

(ii) a trailer referred to in PSTERR paragraph 55(2)(b).

Subsection 55(3) provides that PSTERR paragraphs 55(2)(b) and 55(2)(c) is prescribed for the purposes of paragraph 145(1)(a) [provisions providing exemptions in relation to tangible personal property] of the Act.

PSTERR - SEC.55(2)(C)/R.1-R.3

(2)(c) Parts Obtained for Use in an MJV or a Trailer Obtained for Use Solely with an MJV

R.1 Obtaining The Exemption (Issued: 2014/07)

Carriers may purchase repair parts for multijurisdictional vehicles and trailers used for interjurisdictional commercial purposes without paying PST by quoting their prorate account number to their supplier. An owner-operator driver under contract to a carrier may also quote the carrier's prorate account number to make qualifying purchases exempt from PST.

The supplier must record the prorate registration number, and the purchaser's name and license number, on the invoice and retain a copy of the invoice to substantiate the non-collection of PST.

Carriers who are not yet registered, and owner-operator drivers who are not currently under contract with a registered carrier, must pay PST on their purchases.

R.2 Parts Purchased For Both In-Province And Interjurisdictional Vehicles And Trailers (Issued: 2014/07)

Where possible, the carrier should maintain separate inventories of parts for multijurisdictional vehicles and vehicles that travel solely in British Columbia. Where this is not possible, the carrier's records must support which parts were used on which units.

If the carrier regularly buys parts for both multijurisdictional and vehicles used solely in BC, they must advise their supplier which parts are for use with multijurisdictional vehicles and only use their prorate number to purchase those parts exempt of PST.

R.3 Items Which Qualify As Exempt Parts (Issued: 2014/07)

To qualify as a part for a multijurisdictional vehicle or trailer, the item must be part of, or affixed to, the vehicle and be necessary for the operation of the vehicle.

The following items have been ruled to qualify for exemption as parts and may be purchased exempt of PST by providing the prorate number to the supplier at the time of purchase.

•Air ride seats
Antennas
Back-up alarms
Batteries
Brake system components
Bug deflectors
CB radios
Chrome nut covers
Driving or fog lights
Drive train components
Electrical terminals
Electrical wire
Engines and parts of engines
Engine belts
Engine cooling system
Exhaust stacks
Exhaust tubing
Fuel caps
Fuses
Headlight bulbs
Headlights
Heater hose
Hose clamps
Hub caps
Hydraulic hose
Integrated GPS units (portable units do not qualify)
Light bulbs
Marker lights
Mirrors
Mud flaps
Nylon air line
Odometers
Plastic ties
Radios
Rotating lights
Sealed beams
Signal lights
Speedo cable parts
Speedo cables
Tail lights
Tires
Transmission and parts thereof
Winterfronts
Wiper alarms
Wiper blades

The following items have been ruled NOT to qualify for exemption as a part for a multijurisdictional vehicle or trailer.

Adhesives
Air fresheners
Animal screens
Anti-seize compounds
Ash trays
Audio systems
Belly tarps
Bug screens
Cable shackles
Cargo strap winches
Cargo straps
Chrome headlight guards
Chrome polish
Cranes fastened to the vehicle
Dollies
Electrical tape
Flare kits
Fork lifts
Headache racks
Load binders
Oil sampling kits
Radar detectors
Tarps/ropes used as vehicle covers
Tire chains
Tool boxes
Vinyl cleaner
Wheel chocks
Wheel wrenches
Winch cables
Wire loom

Section 56 – Tangible Personal Property Subject To Security Instrument

PSTERR - SEC.56/Int.-R.1

References:

Act: Section 1 "Excise Tax Act", "purchaser", "sale"; Part 3

PSTERR: Section 1 "obtain"; Section 57

PSTR: Section 24

Bulletin PST 200

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 56 an exemption from tax for tangible personal property repurchased at a specified sale.

Subsection 56(1) provides that in PSTERR section 56, "sale" means a sale referred to in paragraph (g) of the definition of "sale" in section 1 [definitions] of the Act.

Subsection 56(2) provides that tangible personal property repurchased at a sale is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act if

(a) the purchaser takes possession of the tangible personal property under a security instrument, and

(b) tax was paid by the purchaser in respect of the previous purchase of the tangible personal property

(i) under the Act, the Consumption Tax Rebate and Transition Act or the Social Service Tax Act and the purchaser has not obtained and is not entitled to obtain, under those Acts, a refund of that tax, or

(ii) under section 165(2), 212.1 or 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, and the purchaser has not obtained and is not entitled to obtain, under Part IX of that Act, a refund of or a credit or rebate for that tax.

R.1 Repossessions Under A Security Instrument (Issued: 2014/04)

To qualify for exemption under PSTERR section 56(2), TPP must be transferred directly to the person repossessing the property under a security instrument.

For example, a person purchases a vehicle for use, pays tax and later sells the vehicle to another party. If that person repossesses the vehicle under a security instrument (e.g. because of default), the transfer back to that person (the original purchaser) is exempt from PST.

The following provides examples of transfers that would not qualify for this exemption:

The original owner (party A) of a vehicle purchases it (and pays tax) with a bank loan.
At a later date, party A sells it to a relative (party B) who pays the appropriate tax at the time of registration.
On party A's default of payment, the bank takes possession of the vehicle under a security instrument.
Party A repurchases the vehicle from the bank. Title to the vehicle is transferred from party B to party A.

Parties A and B do not qualify for this exemption, as it was the bank, not party A or B, who repossessed the vehicle under a security instrument. The bank also does not qualify because they did not originally pay tax on the vehicle. (However, if the vehicle was repossessed solely for resale, the bank would qualify for the exemption for goods purchased for resale.)

Section 57 – Parts

PSTERR - SEC.57/Int.-R.1

References:

Act: Section 1 "use"; Part 3; Section 44; Section 50; Section 52; Part 3 – Division 9

PSTERR: Section 1 "obtain"; Section 3; Section 17.1; Section 18; Section 19; Section 20; Section 21; Section 22; Section 23; Section 24; Section 25; Section 26; Section 32; Section 46; Section 48; Section 49; Section 50; Section 56; Section 60.2; Section 73; Part 5; Part 9

PSTR: Section 24

Bulletin PST 200

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 57 an exemption from tax for parts designed and obtained for use to repair or recondition most exempt tangible personal property.

Subsection 57(1) provides that subject to PSTERR subsections 57(2) and 57(3), a part designed and obtained for use to repair or recondition tangible personal property is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use], if the tangible personal property would be exempt from tax imposed under the Act if the tangible personal property were obtained on the date on which the part is obtained.

Subsection 57(2) provides that the exemption under PSTERR subsection 57(1) does not apply to a part obtained for use to repair or recondition tangible personal property that would be exempt from tax under any of the following provisions of the Act:

(a) subsection 44(1) [lease under sale and lease-back arrangement] of the Act;

(b) subsection 50(4) [exemption from tax on registration of travel trailer brought into British Columbia] of the Act;

(c) subsection 52(5) [exemption from tax respecting boat or travel trailer brought into British Columbia by non-residents] of the Act.

Subsection 57(3) provides that the exemption under PSTERR subsection 57(1) does not apply to a part obtained for use to repair or recondition tangible personal property that would be exempt from tax under any of the following provisions of the PSTERR:

(a) PSTERR paragraph 3(1)(j) [clip-on sunglasses];

(a.1) PSTERR section 17.1 [gifts];

(b) PSTERR section 18 [gifts between family members];

(d) PSTERR section 20 [prizes, draws and awards];

(e) PSTERR section 21 [inheritance of tangible personal property];

(f) PSTERR section 22 [new resident's effects – tangible personal property];

(g) PSTERR section 23 [vehicle, boat or aircraft brought into British Columbia for gift];

(h) PSTERR section 24 [vehicle purchased for use outside British Columbia];

(i) PSTERR section 25 [aircraft purchased for use outside British Columbia];

(j) PSTERR section 26 [tangible personal property shipped outside British Columbia];

(k) PSTERR subsection 32(2) [air hoses designed to connect to respirators];

(l) PSTERR subsection 46(2) [farmers];

(m) PSTERR subsection 48(2) [commercial fishers];

(n) PSTERR subsection 49(2) [aquaculturists];

(o) PSTERR section 50 [transfer due to dissolution of marriage or relationship];

(p) PSTERR section 56 [tangible personal property subject to security instrument];

(p.1) PSTERR section 60.2 [purchases at duty free shop];

(q) PSTERR Part 5 [Production Machinery and Equipment];

(r) PSTERR Part 9 [Related Party Asset Transfers].

R.1 Specialized Repair Tools (Issued: 2014/04)

Specialized tools for use in repairing and providing services do not qualify for exemption under PSTERR subsection 57(1) as parts designed for the repair or reconditioning of exempt TPP.

Section 58 – Used Manufactured Buildings

PSTERR - SEC.58/Int.

References:

Act: Section 1 "Excise Tax Act", "lease", "lessor", "manufactured building", "purchaser", "retail sale", "use"; Part 3; Part 3 – Division 9

PSTERR: Section 1 "obtain", "residential use"

PSTR: Section 24

Bulletin PST 133

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 58 an exemption from tax for used manufactured buildings.

Subsection 58(1) provides that in PSTERR section 58:

"previous purchaser" means a person who purchased a manufactured building at a previous sale;

"previous sale", in respect of a manufactured building referred to in PSTERR subsection 58(2), means the retail sale, referred to in PSTERR subparagraph 58(2)(a)(i), of the manufactured building.

Subsection 58(2) provides that a manufactured building is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use], if

(a) the manufactured building was previously

(i) sold at a retail sale, and

(ii) subject to PSTERR subsection 58(3), used as a building by

the previous purchaser of the manufactured building,
another person at the expense of the previous purchaser,
a principal for whom the previous purchaser acted as agent in acquiring the manufactured building at the previous sale, or
another person at the expense of a principal for whom that previous purchaser acted as agent in acquiring the manufactured building at the previous sale, and

(b) any of the following applies:

(i) the manufactured building was designed and is obtained for residential use;

(ii) the previous sale took place before July 1, 2010;

(iii) tax was paid by the previous purchaser of the manufactured building in respect of the previous sale

under the Act and the person has not obtained and is not entitled to obtain, under the Act, a refund of that tax, or
under section 165 (2), 212.1 or 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, and that person has not obtained and is not entitled to obtain, under Part IX of that Act, a refund of or a credit or rebate for that tax.

Subsection 58(3) provides that for the purposes of PSTERR subparagraph 58(2)(a)(ii), use of a manufactured building does not include leasing the manufactured building as a lessor.

Section 59 – Custom Software, Custom Modified Software And Other Software

PSTERR - SEC.59/Int.-R.7

References:

Act: Section 1 "lessee", "lease price", "purchase price", "purchaser", "sale", "software", "use"; Part 3; Part 3 – Division 9; Section 89; Section 90; Section 99

PSTERR: Section 1 "obtain"

PSTR: Section 24

Bulletin PST 105

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 59 an exemption from tax for custom software, custom modified software and other specified software, in the form of tangible personal property.

Subsection 59(1) provides that in PSTERR section 59:

"custom modified software" means software that is modified

(a) in a manner that involves changes to the source code, and

(b) solely to meet the requirements of a specific person

(d) that purchase price or lease price is greater than double what it would be for the software in its unmodified form;

"custom software" means

(a) software that is developed solely to meet the requirements of a specific person, and

(b) modifications to software referred to in PSTERR paragraph 59(1)(a), if the modifications are performed for that specific person.

Subsection 59(2) provides that custom software or custom modified software is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 9 [Change in Use], if the custom software or custom modified software is obtained by, or on behalf of, the specific person referred to in the definition of "custom software" or "custom modified software", as applicable, in PSTERR subsection 59(1), for that specific person's own use.

Subsection 59(3) provides that custom software or custom modified software is exempt from tax imposed under Part 3 of the Act if the custom software or custom modified software is sold, as part of a business sold as a going concern, by a person who retains no rights or interests in the custom software or custom modified software.

Subsection 59(4) provides that software is exempt from tax imposed under Part 3 of the Act if

(a) the software is sold, as part of a business sold as a going concern, by a person who retains no rights or interests in the software,

(b) before the sale referred to in PSTERR paragraph 59(4)(a), the software was modified

(i) in a manner that involved changes to the source code, and

(ii) solely to meet the requirements of a specific person, and

(c) the purchase price or lease price, as the case may be, of the modifications referred to in PSTERR paragraph 59(4)(b) was

(i) segregated on the receipt, bill or invoice provided to the purchaser or lessee, and

(ii) greater than the purchase price or lease price, as the case may be, of the software in its unmodified form.

Subsection 59(5) provides that software source code in non-executable form is exempt from tax imposed under Part 3 of the Act.

Subsection 59(6) provides that PSTERR subsections 59(3) and 59(4) are prescribed for the purposes of the following provisions of the Act:

(a) subsection 89(2) [tax on acquisition of eligible tangible personal property] of the Act;

(b) subsection 90(4) [tax on eligible tangible personal property brought into British Columbia] of the Act;

R.1 Software Modules (Issued: 2014/07)

See PSTERR/SEC.68/R.1.

R.2 Modification Versus Configuration (Issued: 2014/07)

See PSTERR/SEC.68/R.2.

R.3 Monthly Or Periodic Billing For Software Modifications (Issued: 2014/07)

See PSTERR/SEC.68/R.3.

R.4 Upgrades To Custom Modified Software Or Custom Software (Issued: 2014/07)

See PSTERR/SEC.68/R.4.

R.5 Additional Licences For Custom Modified Software Or Custom Software (Issued: 2014/07)

See PSTERR/SEC.68/R.5.

R.6 Software Sold As Part Of A Going Concern (Issued: 2014/07)

See PSTERR/SEC.68/R.6.

R.7 Specific person (Issued: 2020/12)

See PSTERR/SEC.68/R.7.

Section 60 – Freedom Of Information And Protection Of Privacy

PSTERR - SEC.60/Int.-R.1

References:

Act: Part 3

PSTR: Section 24

Bulletin PST 200

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 60 that tangible personal property acquired under the Freedom of Information and Protection of Privacy Act and described in Schedule 1 [Schedule of Maximum Fees] of the Freedom of Information and Protection of Privacy Act Regulation, B.C. Reg. 155/2012, is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act.

R.1 Sales Of Routine Records (Issued: 2014/07)

The exemption under PSTERR section 60 only applies to TPP acquired under the Freedom of Information and Protection of Privacy Act (FOIPPA). It does not apply to manuals and other materials routinely sold by ministries where the records are not provided in response to a formal FOIPPA request. Ministries must collect PST on charges for copies of routinely releasable records -- whether in the form of paper, disk, microfilm, microfiche, tape, slide, or photograph - unless the item is otherwise exempt (e.g. books).

PST applies to these sales, even though FOIPPA requires ministries to release manuals, and even though they may release other records without a formal FOIPPA request.

Section 60.1 – Contractor Exempt From Tax Under Section 80.5 Of Act

PSTERR - SEC.60.1/Int.

References:

Act: Section 1 "affixed machinery"; Section 37; Section 49; Section 80.5

Bulletin PST 501

Interpretation (Issued: 2014/02; Revised: 2014/09)

Effective April 1, 2013, B.C. Reg. 117/2014 repeals PSTERR section 60.1. The repeal is consequential to the addition of subsection 80.5(7) of the Act that was part of Bill 8, Budget Measures Implementation Act, 2014. The content of PSTERR section 60.1 was moved to subsection 80.5(7) of the Act.

Effective April 1, 2013, OIC 195/2013 added PSTERR section 60.1

PSTERR section 60.1 provides an exemption from the transitional tax imposed under section 80.5 of the Act for TPP used by a contractor to supply and affix, or install, affixed machinery or improvements to real property, where the other party who entered into the contract with the contractor would have been exempt in respect of the TPP if they were to purchase the TPP.

Section 60.2 – Purchases At Duty Free Shop

PSTERR - SEC.60.2/Int.

References:

Act: Part 3

PSTERR: Section 57

PSTR: Section 24

Bulletin PST 200

Interpretation (Issued: 2014/02)

Effective April 1, 2013, OIC 441/2013 added PSTERR section 60.2.

PSTERR section 60.2 provides that tangible personal property is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act if the tangible personal property is purchased at a duty free shop, as defined in the Customs Act (Canada), by a person who is about to leave Canada.

Section 60.5 – E-substances Containing only Tobacco

PSTERR - SEC.60.5/Int.

References:

Act: Section 1 “e-substance”, “tobacco”; Section 37; Section 49; Section 52; Section 55; Section 81; Section 82; Section 84

Interpretation (Issued: 2023/03)

Effective July 1, 2023, B.C. Reg. 210/2022 repeals PSTERR section 60.5. The repeal is concurrent with, effective July 1, 2023, Bill 10, Budget Measures Amendment Act, 2023 amending the definition of “vapour product” in PSTA Section 1 (see PSTA/Sec. 1/Vapour product/Int.). The amendment clarifies a heated tobacco product is not a vapour product for purposes of the PSTA. As tobacco, a heated tobacco product is subject to the PST rate of 7%.

Effective July 1, 2022, B.C. Reg. 210/2022 added PSTERR section 60.5. Section 60.5 is subsequent to the imposition of 7% PST on tobacco, effective July 1, 2022, under Bill 6, Budget Measures Implementation Act, 2022.

Section 60.5 is a temporary solution to a legislative oversight related to the imposition of PST on tobacco.

“Heated tobacco product” is defined in Section 1 of the Tobacco Tax Act. It is a tobacco product and subject to provincial tobacco tax and also, effective July 1, 2022, 7% PST.

Effective January 1, 2020, Bill 45, Taxation Statutes Amendment Act, 2019 added the definition of “vapour product” to PSTA Section 1. The definition supported a new PST rate of 20% on vapour products. Heated tobacco products have a characteristic similar to vapour products, in that they are designed to be heated without combusting to produce a vapour for inhalation. Inadvertently, heated tobacco products were captured under the definition of vapour product, resulting in the 20% PST rate imposed on vapour products being applied to the purchase price of heated tobacco products. The intended PST rate on heated tobacco products is 7%.

To temporarily correct this oversight, PSTERR section 60.5 provides a partial exemption of 65% of the 20% tax on vapour products for “an e-substance that is tobacco” to ensure heated tobacco products are taxed at the intended 7% PST rate. (65% exemption of 20% tax = 7% tax).

B.C. Reg. 210/2022 includes a one-year sunset clause for PSTERR section 60.5, providing, until July 1, 2023, a regulatory amendment to correct the error.

Division 12 — Evidence Relating to Exemptions under Act in Respect of Tangible Personal Property

Section 61 – Evidence Relating To Exemption Under Section 44 (2) Of Act

PSTERR - SEC.61/Int.

References:

Act: Section 1 "collector"; Part 3; Section 44

PSTR: Section 24

Bulletin PST 315

Interpretation (Issued: 2014/02)

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 61 that for the purposes of subsection 44(2) [evidence required to claim exemption if lease under sale and lease-back arrangement] of the Act, in relation to a person who alleges that tangible personal property is exempt under subsection 44(1) of the Act from tax imposed under Division 3 [Leases of Tangible Personal Property] of Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, the collector is required to obtain

(a) a document evidencing the purchase of the tangible personal property by that person, and

(b) a document evidencing the payment of tax referred to in subparagraph 44(1)(b)(i), 44(1)(b)(ii) or 44(1)(b)(iii) of the Act in respect of the tangible personal property by that person.

Section 61.1 - Evidence Relating To Exemption Of Natural Gas Under Section 140 Of Act

PSTERR - SEC.61.1/Int.

References: Section 145

Interpretation (Revised: 2016/01; Revised: 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends PSTERR section 61.1 to replace “a form acceptable to the director” with “a form specified by the director.” The director has specified that the form that must be used to claim the exemption is a Certificate of Exemption – Natural Gas (FIN 449).

Effective June 9, 2015, by B.C. Reg. 102/2015, PSTERR section 61.1 provides that a collector must obtain a declaration in a form acceptable to the director (FIN 449) to document their adherence to section 145 of the Act when making exempt sales of natural gas.

A purchaser of natural gas is allowed to purchase it without paying PST if purchased for use in an internal combustion engine (they will self-assess motor fuel tax).

Section 62 – Evidence Relating To Exemptions Under Section 141 (1) Of Act

PSTERR - SEC.62/Int.

References:

Act: Section 1 "collector", "director", "registration number"; Section 141; Section 145

PSTR: Section 24; Section 86

Bulletin PST 200

Interpretation (Issued: 2014/02; Revised: 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends PSTERR section 62 to replace “a form acceptable to the director” with “a form specified by the director.” The director has specified that the form that must be used to claim the exemption is a Certificate of Exemption – General (FIN 490).

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 62 that for the purposes of subsection 145(1.1) [evidence required to claim certain exemptions in relation to tangible personal property or software] of the Act, in relation to a person who alleges that tangible personal property is exempt under subsection 141(1) [exemptions in relation to industry and commerce] of the Act, the collector is required to obtain

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director (a Certificate of Exemption – General (FIN 490)).

Section 63 – Evidence Relating To Exemptions Under Section 142 Of Act

PSTERR - SEC.63/Int.

References:

Act: Section 1 "collector", "director", "registration number"; Section 142; Section 145

PSTR: Section 24; Section 86

Bulletin PST 200

Interpretation (Issued: 2014/02; Revised 2024/09)

Effective June 17, 2024, B.C. Reg. 137/2024 amends PSTERR section 63 to replace “a form acceptable to the director” with “a form specified by the director.” The director has specified that the form that must be used to claim the exemption is a Certificate of Exemption – General (FIN 490).

Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 63 that for the purposes of subsection 145(1.1) [evidence required to claim certain exemptions in relation to tangible personal property or software] of the Act, in relation to a person who alleges that tangible personal property is exempt under section 142 [exemptions for tangible personal property intended for lease] of the Act, the collector is required to obtain

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director (a Certificate of Exemption – General (FIN 490)).

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Provincial Sales Tax Exemption & Refund Regulation, Part 2 - Exemptions in Relation to Tangible Personal Property

Division 1 — Health And Medical Products And Equipment For Individuals With Disabilities

Section 3 – Drugs And Health Products

PSTERR - SEC.3/Int.-R.1

R.1 Applicability Of Exemptions To Animals (Issued: 2014/04)

PSTERR - SEC.3(1)(C)/R.1-R.3

(1)(c) Drugs Sold on Prescription or Provided as Promotional Distribution

R.1 Insulin (Issued: 2014/04)

R.2 Persons Eligible For Exemption - Sale On Prescription (Issued: 2014/04)

R.3 Oral Contraceptives (Issued: 2017/05)

PSTERR - SEC.3(1)(D)/R.1

(1)(d) TPP that is the Result of a Medical Imaging Procedure

R.1 X-Rays And Ultrasound Photos (Issued: 2014/04)

PSTERR - SEC.3(1)(F)/R.1

(1)(f) Artificial Limbs or Orthopaedic Appliances

R.1 Orthopaedic Shoes (Issued: 2014/04)

PSTERR - SEC.3(1)(I)/R.1-R.2

(1)(i) Dental and Optical Appliances

R.1 Dental Bonding Compounds (Issued: 2014/04)

R.2 Frames Sold Separately From Prescription Lenses (Issued: 2014/04)

PSTERR - SEC.3(2)(A)/R.1-R.2

(2)(a) Vitamins and Dietary Supplements

R.1 Dietary Supplements (Issued: 2014/04)

R.2 Essential Oils (Issued: 2014/04)

Section 4 – Household Medical Aids

PSTERR - SEC.4/Int.-R.1

R.1 Hand Sanitizer (Issued: 2020/07)

Section 4.1 – Exception - Cannabis

PSTERR - SEC.4.1/Int.

Section 5 – Diabetic And Ostomy Supplies

PSTERR - SEC.5/Int.-R.2

R.1 Diabetic Supplies Purchased By Or On Behalf Of Hospitals, Doctors, Etc. (Issued: 2014/04)

R.2 Ostomy Supplies Purchased By Or On Behalf Of Hospitals, Doctors, Etc. (Issued: 2014/04)

Section 6 – Human Parts And Reproductive Products

PSTERR - SEC.6/Int.

Section 7 – Devices For Use In Transportation Of Individuals With Disabilities

PSTERR - SEC.7/Int.

PSTERR - SEC.7(D)/R.1

(1)(d) Specially Designed Household Elevators, and Materials

R.1 Materials Used To Build A Specially Designed Household Elevator (Issued: 2014/07)

Section 8 – Medical Supplies And Equipment For Individuals With Disabilities

PSTERR - SEC.8/Int.

PSTERR - SEC.8(1)(A)/R.1

(1)(a) Equipment Designed Solely for Use by Individual with Permanent Disability

R.1 Diabetic Socks (Issued: 2014/04)

PSTERR - SEC.8(1)(B)/R.1-R.2

(1)(b) TPP Designed to be Implanted in Humans

R.1 "Implanted" (Issued: 2014/04; Revised 2016/10)

R.2 Implants Used For Cosmetic Or Recontructive Purposes (Issued: 2014/04)

PSTERR - SEC.8(1)(D)/R.1

(1)(d) Hospital-Style Beds

R.1 Hospital-Style Beds (Issued: 2014/04)

Division 2 — Clothing

Section 9 – Children’s Clothing And Footwear

PSTERR - SEC.9/Int.-R.2

R.1 Children's Clothing And Footwear (Issued: 2014/04)

R.2 T-Shirt Transfers (Issued: 2014/07)

Section 10 – Used Clothing And Footwear

PSTERR - SEC.10/Int.-R.4

R.1 Rentals And Leases (Issued: 2014/04)

R.2 Defining "Used Clothing" And "Used Footwear" (Issued: 2014/04)

R.3 Items That Are Used Clothing Or Used Footwear (Issued: 2014/04)

R.4 Items That Are Not Used Clothing Or Used Footwear (Issued: 2014/04)

Section 11 – Clothing Patterns And Related Materials

PSTERR - SEC.11/Int.

PSTERR - SEC.11(2)/R.1-R.2

(2) Yarn, Natural Fibres, Synthetic Thread and Fabric

R.1 Saris And Pre-Cut Suits (Issued: 2014/04)

R.2 "Commonly Used" (Issued: 2014/10)

Division 3 — School Supplies

Section 12 – Definition

PSTERR - SEC.12/Int.

Section 13 – School Supplies Obtained For Use Of Student

PSTERR - SEC.13/Int.

Section 14 – School Supplies Obtained By Qualifying School, School Board Or Similar Authority

PSTERR - SEC.14/Int.-R.1

R.1 School Supplies Lists (Issued: 2014/04)

Division 4 — Publications

Section 15 – Definitions