Provincial Sales Tax Exemption & Refund Regulation, Part 4 - Exemptions in Relation to Services
Last updated on November 1, 2023Division 1 — Services Related to Purchase
Section 71 – Motor Vehicle Conversion For Individuals With Disabilities
PSTERR - SEC.71/Int.
References:
Act: Section 1 "motor vehicle", "multijurisdictional vehicle", "purchaser", "use"; Section 116
Bulletin PST 200
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 71 that a purchaser to whom section 116 [tax if contract for property conversion related to purchase] of the Act applies is exempt from tax imposed under that section if the processing, fabrication, manufacturing, attachment or incorporation referred to in paragraph 116(2)(b) is solely for the purpose of
(a) 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
(b) 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.
Section 72 – Motor Vehicle Modification For Individuals With Disabilities
PSTERR - SEC.72/Int.
References:
Act: Section 1 "motor vehicle", "multijurisdictional vehicle", "purchaser", "use"; Section 117
Bulletin PST 200
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 72 that a purchaser to whom section 117 [tax if contract for modification of purchased property] of the Act applies is exempt from tax imposed under that section if the modification or processing of the tangible personal property referred to in paragraph 117(2)(b) is solely for the purpose of
(a) 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
(b) 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.
Section 72.1 – First Nation Individual Or Band
PSTERR - SEC.72.1/Int.
References:
Act: Section 1 "purchaser"; Section 116; Section 117; Section 145
PSTERR: Section 1 "band", "First Nation individual", "First Nation land"
Bulletin PST 314
Interpretation (Issued: 2014/02)
Effective April 1, 2013, OIC 441/2013 added PSTERR section 72.1.
Subsection 72.1(1) provides that a purchaser is exempt from tax imposed under section 116 [tax if contract for property conversion related to purchase] or section 117 [tax if contract for modification of purchased property] of the Act if
(a) the purchaser is a First Nation individual or a band, and
(b) the following are provided wholly on First Nation land:
(i) in the case of section 116 of the Act, the processing, fabrication, manufacturing, attachment or incorporation referred to in paragraph 116(2)(b) of the Act;
(ii) in the case of section 117 of the Act, the modification or processing of the tangible personal property referred to in paragraph 117(2)(b) of the Act.
Subsection 72.1(2) provides that PSTERR subsection 72.1(1) is prescribed for the purposes of subsection 145(2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.
Division 2 — Related Services in Relation to Tangible Personal Property
Section 73 – Tangible Personal Property for Which Service is Exempt – General
PSTERR - SEC.73/Int.
References:
Act: Section 1 "affixed machinery", "collector", "director", "manufactured building", "multijurisdictional vehicle", "related service", "registrant", "registration number", "small seller", "use"; Part 5 – Division 2; Section 120.1; Section 145
PSTERR: Section 1 "obtain"; Section 57
PSTR: Section 86
Bulletin PST 301
Interpretation (Issued: 2014/02; Revised 2021/11)
Effective October 12, 2021, B.C. Reg. 262/2021 amended PSTERR section 73 to clarify the evidence requirement for the collector when providing exempt related services to multijurisdictional vehicles that are licensed outside BC and to add an evidence requirement for a collector when providing exempt related services to a trailer obtained for use solely with multijurisdictional vehicles.
Subsection 73(2) was amended to add a reference to subsection 73(1)(b) as it relates to tangible personal property that is a trailer obtained for use solely with multijurisdictional vehicles.
Subsection 73(4) was amended to clarify that the collector is required to obtain the account number assigned to the person by the licensing authority in the jurisdiction in which the person licenses the vehicle, in respect to multijurisdictional vehicles licensed outside BC.
Subsection 73(5) was added to require the collector to obtain the same evidence as required in subsection 73(4), when providing exempt related services to a trailer obtained solely for use with multijurisdictional vehicles.
Effective October 25, 2013, OIC 441/2013 amended PSTERR section 73
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in PSTERR subsection 73(2) by striking out the reference to PSTERR paragraphs 73(1)(a) and 73(1)(a.1) and substituting PSTERR paragraphs 73(1)(a), 73(1)(a.1), 73(1)(c) and 73(1)(i), and
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by adding PSTERR subsection 73(4).
This provides authority for the requirement for persons claiming exemptions under these provisions to provide the required supporting documentation.
Effective April 1, 2013, B.C. Reg. 97/2013 as amended by OIC 195/2013 and OIC 441/2013 provides under PSTERR section 73 an exemption from tax for a related service provided to specified tangible personal property.
Subsection 73(1) provides that a related service provided in relation to the following tangible personal property is exempt from tax imposed under Division 2 [Related Services in Relation to Tangible Personal Property] of Part 5 [Taxes in Relation to Services] of the Act, other than section 120.1 [tax if change in use of related service]:
(a) tangible personal property that a person, other than a small seller, stores, keeps or retains solely for the purpose of resale;
(a.1) tangible personal property that a registrant stores, keeps or retains solely for the purpose of leasing the tangible personal property to other persons;
(b) tangible personal property that would be exempt from tax imposed under the Act if the tangible personal property were obtained on the date on which the service is provided, other than tangible personal property that would be exempt from tax under any of the provisions listed in PSTERR subsections 57(2) and 57(3) [parts];
(c) tangible personal property that
(i) was brought or sent into British Columbia solely for the purpose of having the particular related service and any other related service provided in respect of the tangible personal property, and
(ii) was, immediately after the particular related service and any other related service was provided, transported outside British Columbia for use outside British Columbia;
(d) an animal;
(e) a manufactured building;
(f) affixed machinery, other than
(i) travelling cranes and hoists that
- run on rails or tracks attached to a building, and
- are attached to the rails or tracks by flanged wheels, or rest on the rails or tracks by their own weight, and
(ii) affixed machinery, or parts of affixed machinery, that have been removed from the site at which they were affixed or installed;
(g) the following tangible personal property, if the tangible personal property is designed for household use:
(i) clothes dryers;
(ii) clothes washers;
(iii) curtains and draperies;
(iv) dishwashers;
(v) freezers;
(vi) ovens;
(vii) refrigerators;
(viii) rugs and carpets;
(ix) rug-cleaning and carpet-cleaning machines;
(x) sewing machines;
(xi) stoves;
(xii) vacuums;
(h) clothing and footwear, other than blades for skates;
(i) a multijurisdictional vehicle;
(j) tangible personal property that
(i) is typically attached or applied to an individual, and
(ii) is and remains attached or applied to the individual after the service is provided;
(k) Repealed.
Subsection 73(2) provides that PSTERR paragraphs 73(1)(a) and 73(1)(a.1) are prescribed for the purposes of subsection 145(2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.
Subsection 73(3) provides that for the purposes of subsection 145(2) of the Act, in relation to a person who alleges that a related service is exempt under PSTERR paragraph 73(1)(a) or 73(1)(a.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 (form FIN 490)).
Subsection 73(4) provides that for the purposes of subsection 145(2) of the Act, in relation to a person who alleges that a related service is exempt under PSTERR paragraph 73(1)(i), the collector is required to obtain the account number (i.e., prorate number) assigned by the Insurance Corporation of British Columbia to the person in relation to the licensing of the multijurisdictional vehicle.
Section 74 – Tangible Personal Property For Which Service Is Exempt – Farmers
PSTERR - SEC.74/Int.
References:
Act: Section 1 "collector", "director", "related service", "use"; Part 5 – Division 2; Section 120.1; Section 145
PSTERR: Section 1 "qualifying farmer"; Schedule 2
Bulletin PST 101
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 74 an exemption from tax for a related service provided to tangible personal property listed in PSTERR Schedule 2 if
- the related service is purchased by a qualifying farmer, and
- the tangible personal property is to be used solely for a farm purpose.
Subsection 74(1) provides that a related service provided in relation to tangible personal property described in PSTERR Schedule 2 [Tangible Personal Property for Farm Purpose] is exempt from tax imposed under Division 2 [Related Services in Relation to Tangible Personal Property] of Part 5 [Taxes in Relation to Services] of the Act, other than section 120.1 [tax if change in use of related service], if
(a) the related service is purchased by a qualifying farmer, and
(b) the tangible personal property is to be used solely for a farm purpose.
Subsection 74(2) provides that PSTERR subsection 74(1) is prescribed for the purposes of subsection 145(2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.
Subsection 74(3) provides that for the purposes of subsection 145(2) of the Act, in relation to a person who alleges that a related service is exempt under PSTERR subsection 74(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 75 – Tangible Personal Property For Which Service Is Exempt – Commercial Fishers
PSTERR - SEC.75/Int.
References:
Act: Section 1 "boat", "collector", "director", "related service", "use"; Part 5 – Division 2; Section 120.1; Section 145
PSTERR: Section 1 "fishing equipment", "qualifying commercial fisher"; Schedule 3
Bulletin PST 102
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 75 an exemption from tax for a related service provided to a boat, fishing net or fishing equipment (including, but not limited to, the tangible personal property listed in PSTERR Schedule 3) if
- the related service is purchased by a qualifying commercial fisher, and
- the boat, fishing net or fishing equipment is to be used solely for a commercial fishing purpose.
Subsection 75(1) provides that a related service provided in relation to a boat, fishing net or fishing equipment is exempt from tax imposed under Division 2 [Related Services in Relation to Tangible Personal Property] of Part 5 [Taxes in Relation to Services] of the Act, other than section 120.1 [tax if change in use of related service], if
(a) the related service is purchased by a qualifying commercial fisher, and
(b) the boat, fishing net or fishing equipment is to be used solely for a commercial fishing purpose.
Subsection 75(2) provides that PSTERR subsection 75(1) is prescribed for the purposes of subsection 145(2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.
Subsection 75(3) provides that for the purposes of paragraph 145(2)(a) of the Act, in relation to a person who alleges that a related service is exempt under PSTERR subsection 75(1), the collector is required to obtain a declaration in a form acceptable to the director (a Certificate of Exemption – Commercial Fisher (form FIN 455)).
Section 76 – Tangible Personal Property For Which Service Is Exempt – Aquaculturists
PSTERR - SEC.76/Int.
References:
Act: Section 1 "collector", "director", "related service", "use"; Part 5 – Division 2; Section 120.1; Section 145
PSTERR: Section 1 "qualifying aquaculturist"; Schedule 4
Bulletin PST 103
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 76 an exemption from tax for a related service provided to tangible personal property listed in PSTERR Schedule 4 if
- the related service is purchased by a qualifying aquaculturist, and
- the tangible personal property is to be used solely for an aquaculture purpose.
Subsection 76(1) provides that a related service provided in relation to tangible personal property described in PSTERR Schedule 4 [Tangible Personal Property for Aquaculture Purpose] is exempt from tax imposed under Division 2 [Related Services in Relation to Tangible Personal Property] of Part 5 [Taxes in Relation to Services] of the Act, other than section 120.1 [tax if change in use of related service], if
(a) the related service is purchased by a qualifying aquaculturist, and
(b) the tangible personal property is to be used solely for an aquaculture purpose.
Subsection 76(2) provides that PSTERR subsection 76(1) is prescribed for the purposes of subsection 145(2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.
Subsection 76(3) provides that for the purposes of paragraph 145(2)(a) of the Act, in relation to a person who alleges that a related service is exempt under PSTERR subsection 76(1), the collector is required to obtain a declaration in a form acceptable to the director (a Certificate of Exemption – Aquaculturist (form FIN 456)).
Section 76.1 – Services Provided Outside British Columbia In Relation To Taxable Conveyance
PSTERR - SEC.76.1/Int.
References:
Act: Section 1 "related service"; Section 59 "taxable conveyance"; Section 120
Bulletin PST 200
Interpretation (Issued: 2014/02)
Effective April 1, 2013, OIC 441/2013 added PSTERR section 76.1.
PSTERR section 76.1 provides that a related service provided in relation to a taxable conveyance, as defined in section 59 [definitions] of the Act, is exempt from tax imposed under section 120 [tax if related service provided outside British Columbia] of the Act.
Section 77 – Exempt Services
PSTERR - SEC.77/Int.
References:
Act: Section 1 "affixed machinery", "electronic device", "lessee", "motor vehicle", "purchaser", "related service", "software", "use"; Section 10; Section 13; Part 5 – Division 2; Section 120.1; Section 145
PSTERR: Section 1 "band", "First Nation individual", "First Nation land", Section 148
Bulletin PST 301
Interpretation (Issued: 2014/02; Revised: 2015/09)
Effective April 1, 2013, OIC 279/2015 amended PSTERR section 77(1) by adding "liquefying natural gas."
Effective October 25, 2013, OIC 441/2013 amended PSTERR section 77 by adding PSTERR subsection 77(3).
This provides authority for a collector to require, from a First Nation individual or band claiming an exemption from tax for related services they purchase to be provided wholly on First Nation land, certain documentation to support the purchaser’s eligibility for the exemption.
Effective April 1, 2013, B.C. Reg. 97/2013 as amended by OIC 441/2013 provides under PSTERR section 77 exemptions from tax for specified related services.
PSTERR - SEC.77(2)(F)/R.1
(2)(f) Cleaning Services
R.1 Sandblasting (Issued: 2014/04)
Sandblasting, also known as abrasive blasting, is the common term for the operation of forcibly propelling a stream of abrasive material against a surface under high pressure to smooth a rough surface, roughen a smooth surface, shape a surface, or remove surface contaminants. Although collectively referred to as sandblasting, the media used as the abrasive may vary widely and includes sand, glass beads, nut shells and corn starch.
The application of PST to sandblasting will depend on the purpose of the sandblasting. If the purpose is only to remove surface contaminants such as dirt or oil from TPP, the service is exempt as a cleaning service as long as no other service is provided in relation to the TPP (other than another exempt service).
The media used for the sandblasting will be indicative of the purpose. For example, soft abrasives, such as corn starch or sodium bicarbonate, will generally be used for cleaning TPP as they will not damage the underlying material (e.g., graffiti removal).
However, if for example, sandblasting uses silica sand to not only remove surface contaminants, but to smooth a rough surface or shape a surface, the service goes beyond a cleaning service and is subject to PST as a related service when performed on TPP.
PSTERR - SEC.77(2)(G)/R.1-R.2
(2)(g) Moving Services
R.1 Pulling Boats From The Water (Issued: 2014/04)
A service to pull boats from the water is a moving service and qualifies for exemption under PSTERR paragraph 77(2)(g). However, if a boat is pulled from the water by a service provider in order to provide a repair or maintenance service, it is subject to tax unless the repair or maintenance service is specifically exempt. For example:
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A related service purchased by a qualifying commercial fisher and provided to repair a boat used solely for a commercial fishing purpose is exempt under PSTERR subsection 75(1) [tangible personal property for which service is exempt - commercial fishers].
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A related service provided to repair a self-propelled vessel of more than 500 tons gross is exempt under PSTERR paragraph 73(1)(b) [tangible personal property for which service is exempt - general].
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A related service provided to repair a tugboat is subject to tax, and any charge from the repairer for pulling the boat from the water is subject to tax as part of the purchase price of the repair service.
R.2 Marine Towing Services And Marine Salvage Services (Issued: 2014/04)
Towing log booms, barges, floats, etc. and marine salvage services that consist of transporting submerged TPP to the surface or righting vessels are moving services and qualify for exemption under PSTERR paragraph 77(2)(g).
Marine salvage services that involve the provision of taxable related services, such as repairs or a significant amount of dismantling, do not qualify for the exemption.
PSTERR - SEC.77(2)(K)/R.1
(2)(k) Services to Measure, Weigh, Grade of Classify TPP
R.1 Log Scaling (Issued: 2014/04)
Log scaling involves estimating the number of board feet of lumber contained in a log, or a pile of logs. Some marks may be placed on the ends of the logs for identification purposes (e.g., timber mark), but no other changes are made to the logs. This service qualifies for the exemption under PSTERR paragraph 77(2)(k).
Division 3 — Accommodation
Section 78 – Exemptions In Relation To Accommodation
PSTERR - SEC.78/Int.
References:
Act: Section 1 "accommodation", "month", "substantially", "tourism agent"; Part 5 – Division 3; Section 145
PSTERR: Section 1 "band", "First Nation individual", "First Nation land"
Bulletin PST 120
Interpretation (Issued: 2014/02; Revised: 2021/10)
Effective October 1, 2018, B.C. Reg 141/2018 amended PSTERR section 78 as a result of amendments made to the Act by the Budget Measures Implementation Act, 2018, that allow online accommodation platforms to register to collect and remit tax. The amendments to section 78 reflect the capabilities of online accommodation platforms to administer certain exemptions.
Paragraph (a) is amended to only allow an exemption in relation to accommodation for which the charge for the unit of accommodation is $30 or less per day or $210 or less per week to apply to accommodation that is not listed on an online accommodation platform.
Paragraph (b) was repealed. The exemption for accommodation provided by accommodation providers who offer fewer than four units is no longer available.
Paragraph (c) is amended to change the duration of continuous stay in a unit of accommodation required for exemption to “27 days or more” from "more than one month". The change to a defined number of days (rather than "one month") is simpler for online accommodation platforms to administer.
Paragraph (j) was added to provide an exemption for accommodation that is provided by a person who does not list the accommodation on an online accommodation platform and whose gross revenue from the provision of accommodation is equal to or less than the specified threshold ($2,500 or less in the previous 12 months and an estimated $2,500 or less in the next 12 months).
Effective October 25, 2013, OIC 441/2013 amended PSTERR section 78 by
- renumbering the section as PSTERR subsection 78(1), and
- adding PSTERR subsection 78(2).
Subsection 78(2) provides authority for a collector to require, from a First Nation individual or band claiming an exemption from tax for accommodation they purchase to be provided wholly on First Nation land, certain documentation to support the purchaser’s eligibility for the exemption.
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 78 exemptions from tax for accommodation provided in specified circumstances.
PSTERR - SEC.78(1)(I)/Int.
(1)(i) Accommodation Provided in Tents
R.1 Tents (Issued: 2016/01)
The exemption for accommodation provided in tents applies where accommodation is provided in a portable shelter made of cloth or animal skin held up by poles and ropes.
The following structures have been considered as possibly qualifying for this exemption:
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Yurts. A traditional yurt is a portable structure made of animal skin or felt supported by a collapsible wood or bamboo lattice framework held together by ropes. It is designed to be dismantled and carried elsewhere to be rebuilt on another site. Modern yurts are generally made of synthetic materials supported by wooden poles, are erected on wooden platforms, and are not intended to be moved frequently.
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Tipis. A tipi is a conical structure, traditionally made of animal skin and now generally made of canvas, supported by multiple poles. Ropes are needed to bind the poles and attach the structure to the ground using wooden pegs.
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Tent cabins. A tent cabin is a wooden structure with canvas walls. It may be erected on a platform, and is not intended to be moved.
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Otentiks. An otentik is a type of tent cabin exclusive to Parks Canada, which describes it as "permanent" and as "a cross between an A-frame cabin and a prospector tent mounted on a raised wooden floor".
Accommodation provided in tent cabins (including otentiks) and modern yurts is taxable, as tent cabins are not made of cloth or animal skin held up by poles and ropes, and neither tent cabins nor modern yurts are portable. Accommodation provided in traditional yurts or in tipis is exempt, as both are portable shelters made of cloth or animal skin held up by poles and ropes.
Division 4 — Legal Services
Section 79 – Definitions
PSTERR - SEC.79/Int.
References:
PSTERR: Part 4 – Division 4
Bulletin PST 106
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 79 that in PSTERR Division 4 [Legal Services] of PSTERR Part 4 [Exemptions in Relation to Services]:
"law firm" has the same meaning as in the Legal Profession Act;
"notary firm" means a legal entity or combination of legal entities providing services described in section 18 of the Notaries Act.
Section 80 – Legal Services Provided Under Contract
PSTERR - SEC.80/Int.
References:
Act: Section 1 "legal services", "purchase price"; Part 5 – Division 4
Bulletin PST 106
Interpretation (Issued: 2014/02)
Effective April 1, 2013, OIC 441/2013 repealed and replaced PSTERR section 80.
PSTERR section 80 provides that legal services are exempt from tax imposed under Division 4 [Legal Services] of Part 5 [Taxes in Relation to Services] of the Act if
(a) the legal services are provided to a lawyer, law firm, notary or notary firm by
(i) an individual who provides legal services only to the lawyer, law firm, notary or notary firm, but who is not an employee of the lawyer, law firm, notary or notary firm for the purposes of the Income Tax Act (Canada), or
(ii) a law firm or notary firm that provides legal services only to the lawyer, law firm, notary or notary firm,
(b) the legal services are provided only in respect of a particular client of the lawyer, law firm, notary or notary firm, and
(c) the purchase price to the lawyer, law firm, notary or notary firm for the legal services is to be included in the purchase price of the legal services billed or otherwise charge to the client by the lawyer, law firm, notary or notary firm.
Section 81 – Legal Services Provided To First Nation Individuals
PSTERR - SEC.81/Int.-R.1
References:
Act: Section 1 "legal services"; Part 5 – Division 4; Section 145
PSTERR: Section 1 "band", "First Nation individual", "First Nation land"
Bulletin PST 106
Interpretation (Issued: 2014/02)
Effective October 25, 2013, OIC 441/2013 amended PSTERR section 81 by
- renumbering the section as PSTERR subsection 81(1), and
- adding PSTERR subsection 81(2).
This provides authority for a collector to require, from a First Nation individual or band claiming an exemption from tax for legal services they purchase that relate to real property situated on First Nation land or are performed wholly on First Nation land, certain documentation to support the purchaser’s eligibility for the exemption.
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 81 exemptions from tax for specified legal services purchased by First Nation individuals, bands and aboriginal organizations representing the interests of Indians and bands.
Subsection 81(1) provides that the following are exempt from tax imposed under Division 4 [Legal Services] of Part 5 [Taxes in Relation to Services] of the Act:
(a) legal services purchased by a First Nation individual or a band, if the legal services
(i) relate to real property situated on First Nation land, or
(ii) are performed on First Nation land;
(b) legal services purchased by an aboriginal organization representing the interests of Indians and bands, if the legal services relate to any of the following:
(i) aboriginal treaty or land claims negotiations;
(ii) consultations with the government or the government of Canada in relation to aboriginal rights or aboriginal title;
(iii) negotiations with the government or the government of Canada in relation to interim agreements that relate to aboriginal rights or aboriginal title;
(iv) negotiations that relate to existing treaties or treaty rights;
(v) negotiations with other aboriginal organizations in relation to overlapping treaty or land claims.
Subsection 81(2) provides that PSTERR subsection 81(1) is prescribed for the purposes of subsection 145(2) [evidence required to claim exemptions in relation to taxable services] of the Act.
R.1 Reference To "Indian" (Issued: 2014/07)
The reference to "Indian" in PSTERR paragraph 81(1)(b) is used so that the exemption may also apply to people, such as Nisga'a individuals, who are still an "Indian" under the Indian Act (Canada) but their property is no longer exempt under section 87 of the Indian Act (Canada) or a final agreement and therefore would not be a "First Nation Individual" as defined in section 1 of the Act.
PSTERR - SEC.81(1)(A)/R.1
(1)(a) Legal Services Purchased by a First Nation Individual or Band
R.1 Land Under An Aboriginal Land Claim (Issued: 2014/04)
First Nation individuals are not exempt from tax imposed on legal services if the legal services are provided on land under an aboriginal land claim or if the situation out of which the legal services arise occurs on land under an aboriginal land claim. Locations under an aboriginal land claim do not qualify as First Nation land. For example, legal services provided to a First Nation individual in a personal injury auto accident case where the services were provided on land under an aboriginal land claim, or where the accident occurred on land subject to a land claim, are not exempt from tax.
PSTERR - SEC.81(1)(B)/R.1
(1)(b) Legal Services Purchased by an Aboriginal Organization
R.1 Aboriginal Organizations (Issued: 2014/04)
Aboriginal organizations may include entities such as tribal councils, corporations, societies, or bands.
Section 82 – Legal Services Provided To Corporations
PSTERR - SEC.82/Int.
References:
Act: Section 1 "legal services"; Part 5 – Division 4
PSTERR: Section 148
Bulletin PST 106
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 82 that a corporation is exempt from tax imposed under Division 4 [Legal Services] of Part 5 [Taxes in Relation to Services] of the Act in relation to legal services provided to that corporation by an employee of a related corporation within the meaning of PSTERR section 148 [definitions and interpretation for Part 9].
Division 5 — Telecommunication Services
Section 83 – Telephone And Communication Services
PSTERR - SEC.83/Int.
References:
Act: Section 1 "purchaser", "telecommunication", "telecommunication service"; Part 5 – Division 5
Bulletin PST 107
Interpretation (Issued: 2014/02; Revised: 2023/10)
Effective March 15, 2016, B.C. Reg. 74/2016 amends PSTERR paragraph 83(2)(b)(xiii) to update the name of E-Comm Emergency Communications for British Columbia Incorporated.
Effective April 1, 2013, B.C. Reg. 97/2013 as amended by OIC 188/2013 and OIC 441/2013 provides under PSTERR section 83 exemptions from tax for specified telecommunication services.
Subsection 83(1) provides that in PSTERR section 83, "public switched telephone network" means a telecommunication facility, the primary purpose of which is to provide, for compensation, a landline-based telephone service to the public.
Subsection 83(2) provides that the following are exempt from tax imposed under Division 5 [Telecommunication Services] of Part 5 [Taxes in Relation to Services] of the Act:
(a) a telecommunication service in the form of a toll-free number, other than if the telecommunication service is
(i) acquired for family or domestic use, or
(ii) a teleconference service.
(b) a telecommunication service that is purchased by
(i) the government,
(ii) an agent of the government,
(iii) a regional district,
(iv) a municipality,
(v) a fire department,
(vi) a police department,
(vii) the South Coast British Columbia Transportation Authority,
(viii) the Victoria Airport Authority,
(ix) the British Columbia Ambulance Service,
(x) British Columbia Emergency Health Services,
(xi) British Columbia Transit, or
(xii) the University of Victoria
in respect of its emergency communications systems from
(xiii) E-Comm Emergency Communications for Southwest British Columbia Incorporated, or
(xiv) the Capital Region Emergency Service Telecommunications Incorporated (CREST);
(c) conventional paging services that allow a person to receive, but not to send, telecommunications by means of a pager;
(d) subject to PSTERR subsection 83(3), residential telephone services provided to a purchaser by means of a wire or cable and through a public switched telephone network.
Subsection 83(3) provides that the exemption under PSTERR paragraph 83(2)(d) does not apply to the following:
(a) long distance telephone services;
(b) telephone services provided to a purchaser by means of the internet.
PSTERR - SEC.83(2)(D)/R.1
(2)(d) Residential Telephone Services
R.1 Apartment Intercoms (Issued: 2014/04)
Some apartment intercom systems use standard telephone lines to allow visitors to communicate to residents of the apartment. A charge for the use of an intercom service is subject to PST as a telecommunication service because the service provides the resident with the right to receive telecommunications. This service is not a residential telephone service as described in PSTERR paragraph 83(2)(d) and charges (e.g. monthly) for an intercom service are subject to PST.
PSTERR - SEC.83(3)(A)/R.1
(3)(a) Long Distance Telephone Services
R.1 Long Distance Telephone Services Accessed By Calling A Local Switching Facility (Issued: 2014/04)
For some long distance telephone services, the purchaser must first dial a local number that connects them to the provider's switching facility. Once connected, the customer then dials the long distance number they wish to reach.
The common or ordinary meaning of the term "long distance", when applied to telephone services, refers to any call made to a number outside of a local calling area regardless of whether the distance involved is a few kilometres or a few thousand kilometres. Accordingly, any calls outside of a local calling area are "long distance" calls regardless of the method of placing the call or method of billing.
If a purchaser is charged for telephone calls to numbers outside of their local calling area, these are considered "long distance telephone services" for the purposes of PSTERR paragraph 83(3)(b) and do not qualify for the exemption for residential telephone services provided under PSTERR paragraph 83(2)(d).
For example, if a purchaser pays a monthly fee to a provider to make calls to any location in North America, this is considered a "long distance telephone services" for the purposes of PSTERR paragraph 83(3)(b) and is subject to PST, even if the service is billed through a purchaser's residential phone and the purchaser initially dials a local number to place the call.
Section 84 – Cable Television Services
PSTERR - SEC.84/Int.
References:
Act: Section 1 "purchaser"; Part 5 – Division 5
Bulletin PST 107
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 84 exemptions from tax for basic cable television services.
Subsection 84(1) provides that in PSTERR section 84, "basic cable television services" means the minimum level of television services that a purchaser must purchase from a provider of television services to receive any television services from that provider.
Subsection 84(2) provides that subject to PSTERR subsection 84(3), basic cable television services provided to a purchaser by means of a wire or cable are exempt from tax imposed under Division 5 [Telecommunication Services] of Part 5 [Taxes in Relation to Services] of the Act.
Subsection 84(3) provides that the exemption under PSTERR subsection 84(2) does not apply to television services provided to a purchaser by means of satellite or the internet.
Section 85 – Education Programs
PSTERR - SEC.85/Int.
References:
Act: Section 1 "purchaser", "telecommunication", "telecommunication service", "telecommunication system"; Part 5 – Division 5
PSTERR: Section 1 "qualifying school"
Bulletin PST 107
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 as amended by OIC 441/2013 provides under PSTERR section 85 that a telecommunication service that is provided to a purchaser as part of the purchaser’s participation in any of the following programs or activities and is provided only to participants of the program or activity by the person offering that program or activity is exempt from tax under Division 5 [Telecommunication Services] of Part 5 [Taxes in Relation to Services] of the Act:
(a) an educational program provided by a qualifying school or other educational institution;
(b) a training or instructional program designed to develop or improve the knowledge, skills or abilities needed by individuals for a particular trade, occupation or profession;
(c) a lecture, presentation, seminar, workshop or similar activity designed for educational purposes, if the participants in the activity and the presenter or instructor utilize a telecommunication system to send and receive telecommunications with each other in real time.
Section 86 – Photographers
PSTERR - SEC.86/Int.
References:
Act: Section 1 "purchaser", "tangible personal property", "telecommunication service"; Part 5 – Division 5
PSTERR: Section 1 "obtain"
Bulletin PST 107
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 as amended by OIC 441/2013 provides under PSTERR section 86 that a purchaser is exempt from tax imposed under Division 5 [Telecommunication Services] of Part 5 [Taxes in Relation to Services] of the Act in respect of a telecommunication service if
(a) the purchaser purchases the telecommunication service from a person who produced a video specifically for the purchaser under a contract with that purchaser,
(b) the telecommunication service is a telecommunication service described in paragraph (d) of the definition of "telecommunication service" in section 1 [definitions] of the Act in respect of the video referred to in PSTERR paragraph 86(a), and
(c) the purchaser does not obtain the video, or copies of the video, referred to in PSTERR paragraph 86(a) in the form of tangible personal property.
Section 87 – Data Back-Up Services
PSTERR - SEC.87/Int.
References:
Act: Section 1 "electronic device", "purchaser", "telecommunication service"; Part 5 – Division 5
Bulletin PST 107
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 87 that a telecommunication service that is provided to a purchaser for the purpose of backing up the purchaser’s data that is installed on an electronic device is exempt from tax imposed under Division 5 [Telecommunication Services] of Part 5 [Taxes in Relation to Services] of the Act.
Section 88 – Telecommunication Service In Relation To Purchase Of Accommodation
PSTERR - SEC.88/Int.
References:
Act: Section 1 "accommodation", "purchaser", "telecommunication service"; Part 5 – Division 5
Bulletin PST 107
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 88 that a purchaser is exempt from tax imposed under Division 5 [Telecommunication Services] of Part 5 [Taxes in Relation to Services] of the Act in respect of a telecommunication service if
(a) the purchaser purchases the telecommunication service from a provider of accommodation, and
(b) the telecommunication service is in relation to a purchase of accommodation in British Columbia.
Section 88.1 – Telecommunication Service Purchased By First Nation Individual Or Band
PSTERR - SEC.88.1/Int.-R.1
References:
Act: Section 1 "electronic device", "telecommunication service"; Part 5 – Division 5; Section 145
PSTERR: Section 1 "band", "First Nation individual", "First Nation land"
Bulletin PST 314
Interpretation (Issued: 2014/02)
Effective April 1, 2013, OIC 441/2013 added PSTERR section 88.1.
Subsection 88.1(1) provides that a telecommunication service is exempt from tax imposed under Division 5 [Telecommunication Services] of Part 5 [Taxes in Relation to Services] of the Act if
(a) the telecommunication service is purchased by a First Nation individual or a band, and
(b) the electronic device is
(i) owned or leased by the First Nation individual or band, and
(ii) ordinarily situated on First Nation land.
Subsection 88.1(2) provides that PSTERR subsection 88.1(1) is prescribed for the purposes of subsection 145(2) [evidence required to claim certain exemptions in relation to taxable service] of the Act.
R.1 Telecommunication Services Purchased By First Nation Businesses (Issued: 2014/04)
General Partnerships and Limited Liability Partnerships
If telecommunication services are purchased by a general partnership or limited liability partnership operating on First Nation land, and all of the partners are First Nation individuals or bands, the telecommunication services are exempt from PST under PSTERR section 88.1 if the services are purchased for use on or with an electronic device that is owned or leased by the partnership and the electronic device is ordinarily situated on First Nation land. Also, the documentation procedures for the exemption, as specified in Bulletin PST 314, must be met.
If telecommunication services are purchased by a general partnership or limited liability partnership operating on First Nation land and the partnership has First Nation and non-First Nation partners, the exemption is available for those telecommunication services provided on First Nation land on a pro rata basis according to the First Nation partners' interest in the partnership. For example, if there are five partners and two of the partners are First Nation individuals or bands, tax is payable on 60 percent of the purchase price of the telecommunication services (unless the partnership agreement specifies a different allocation of partnership interest).
The exemption is based on the First Nation partners' interest in the partnership, regardless of whether the First Nation partners use the telecommunication services more than the non-First Nation partners.
Proprietorships
If the purchaser is a sole proprietorship, the full charge for the telecommunication services is eligible for exemption if the proprietor is a First Nation individual and the services are purchased for use on or with an electronic device that is owned or leased by the proprietor and is ordinarily situated on First Nation land. Also, the documentation procedures for the exemption, as specified in Bulletin PST 314, must be met.
Corporations
If the purchaser is a corporation, the full purchase price is subject to tax, even if some or all of the shareholders are First Nation individuals or bands.
Division 6 — Evidence Relating to Exemptions under Act in Respect of Services
Section 89 – Evidence Relating To Exemptions Under Section 130 (3) Of Act
PSTERR - SEC.89/Int.
References:
Act: Section 1 "collector", "director", "registration number", "telecommunication service"; Section 130; Section 134
PSTR: Section 86
Bulletin PST 107
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 89 that for the purposes of subsection 130(3) [evidence required to claim exemption in relation to telecommunication services] of the Act, in relation to a person who alleges that a telecommunication service is exempt under section 134 [exemption if telecommunication service purchased for resale] 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 (form FIN 490)).