Provincial Sales Tax Exemption & Refund Regulation, Part 6 - Refunds
Last updated on November 1, 2023Section 121 – Medical Equipment And Software Purchased With Charity Funds
PSTERR - SEC.121/Int.
References:Section 133
Act: Section 1 "director", "eligible charity", "purchase price", "software", "use"; Part 3; Part 4; Section 165
Bulletin PST 401
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 121 authority for the director to refund to an eligible charity tax paid on eligible medical equipment and software purchased in whole or in part with charity funds of the eligible charity. The amount of the refund is determined by the prescribed formula.
Subsection 121(1) provides that in PSTERR section 121:
"charity funds" means the funds of an eligible charity, other than funds provided directly or indirectly by
(a) a health authority, a health facility or a local authority,
(b) the PHSA,
(c) the government of British Columbia, except grants under section 41 [grants to eligible organizations] of the Gaming Control Act, or
(d) the government of Canada;
"community care facility" has the same meaning as in the Community Care and Assisted Living Act;
"health authority" means a regional health board designated under section 4 [regional health boards] of the Health Authorities Act;
"health facility" means any of the following:
(a) a hospital within the meaning of the Hospital Act, including a private hospital within the meaning of Part 2 [Private Hospitals] of that Act;
(b) a provincial mental health facility designated under subsection 3(1) [designation of mental health facilities] of the Mental Health Act;
(c) a community care facility, other than a child day care facility, licensed under section 11 [powers of medical health officer] of the Community Care and Assisted Living Act;
"limitation date", in respect of an application for a refund under PSTERR subsection 121(2) or 121(3), is the date that is 4 years after the date on which the tax to which the application relates was paid;
"medical equipment" includes the following:
(a) diagnostic medical imaging equipment;
(b) defibrillators, ventilators and heart-lung machines;
(c) infant warmers;
(d) infusion pumps;
(e) laboratory testing equipment;
(f) medical monitors;
(g) radiation, anaesthetic and intravenous equipment;
(h) stretchers;
(i) surgical equipment, surgical and medical instruments, surgical sterilization equipment and operating tables,
but does not include the following:
(j) couches, chairs, televisions, refrigerators, microwave ovens, pillows, bedding and other items or equipment, that are typically used for household purposes;
(k) equipment used solely for research;
(l) office equipment;
"PHSA" means the Provincial Health Services Authority, a society incorporated under the Society Act.
Subsection 121(2) provides that subject to PSTERR section 121, if the director is satisfied that an eligible charity, a health facility, a health authority or the PHSA paid tax under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act in respect of medical equipment that was purchased
(a) in whole or in part with charity funds of an eligible charity, and
(b) for use by a health facility to treat a patient or diagnose a patient's ailments,
the director must refund to the eligible charity referred to in PSTERR paragraph 121(2)(a) the lesser of
(c) the amount of tax paid under Part 3 of the Act in respect of the medical equipment, and
(d) the amount calculated under PSTERR subsection 121(4) in respect of the medical equipment.
Subsection 121(3) provides that subject to section 121, if the director is satisfied that an eligible charity, a health facility, a health authority or the PHSA
(a) meets the requirements of PSTERR paragraphs 121(2)(a) and 121(2)(b) in respect of the medical equipment referred to in PSTERR subsection 121(2), and
(b) paid tax under Part 3 or Part 4 [Taxes in Relation to Software] of the Act in respect of software that was purchased
(i) in whole or in part with charity funds of an eligible charity,
(ii) together with the medical equipment, and
(iii) for use to operate, control or monitor that medical equipment,
the director must refund to the eligible charity referred to in PSTERR subparagraph 121(3)(b)(i) the lesser of
(c) the amount of tax paid under Part 3 or Part 4 of the Act in respect of the software, and
(d) the amount calculated under PSTERR subsection 121(4) in respect of that software.
Subsection 121(4) provides that the amount referred to in PSTERR paragraph 121(2)(d) in respect of medical equipment and in PSTERR subsection 121(3)(d) in respect of software is equal to the amount determined by the following formula:
amount = tax paid x [charity funds /(price + tax paid)]
where
charity funds = the total amount of charity funds of the eligible charity used to purchase the medical equipment or software;
price = the purchase price of the medical equipment or software;
tax paid = the amount of tax paid under Part 3 of the Act in respect of the medical equipment or under Part 3 or Part 4 of the Act in respect of the software.
Subsection 121(5) provides that an application by an eligible charity under section 165 [claim for refund] of the Act for a refund under PSTERR subsection 121(2) or 121(3) must include all of the following for each item of medical equipment or software purchased with charity funds of the eligible charity:
(a) the name and address of the health facility in which the medical equipment is to be used;
(b) the amount of charity funds provided by the eligible charity that were used to purchase the medical equipment or software;
(c) a statement signed by an officer of the eligible charity certifying that charity funds of the eligible charity were used to purchase the medical equipment or software;
(d) if the medical equipment or software was purchased by a health authority, a health facility or the PHSA,
(i) documentation establishing that the eligible charity provided charity funds directly to the health authority, the health facility or the PHSA, as applicable, for the purpose of purchasing the medical equipment or software, and
(ii) a statement signed by an officer of the eligible charity authorizing the director to discuss the application with the health authority, the health facility or the PHSA, as applicable;
(e) if the medical equipment was purchased by a health authority or the PHSA, a statement signed by an administrator of the health authority or the PHSA, as applicable, certifying
(i) that the medical equipment is for use in the health facility referred to in PSTERR paragraph 121(5)(a) to treat patients or diagnose their ailments, and
(ii) that, if the health facility is a community care facility, the facility is licensed under section 11 of the Community Care and Assisted Living Act;
(f) if the medical equipment was purchased by the eligible charity or a health facility, a statement signed by an administrator of the health facility referred to in PSTERR paragraph 121(5)(a) certifying
(i) that the medical equipment is for use in the health facility to treat patients or diagnose their ailments, and
(ii) that, if the health facility is a community care facility, the facility is licensed under section 11 of the Community Care and Assisted Living Act.
Subsection 121(6) provides that an eligible charity may submit an application under section 165 of the Act in respect of a refund under PSTERR subsection 121(2) or 121(3) only if
(a) the eligible charity has not submitted another application in the calendar year, or
(b) the application is submitted on, or during the 6-month period before, the limitation date for that application.
Subsection 121(7) provides that for the purposes of PSTERR paragraph 121(6)(a), a single application that relates to more than one refund under PSTERR subsection 121(2) or 121(3) is to be considered one application.
Section 122 – Tangible Personal Property And Software Purchased With Parents’ Advisory Council Funds
PSTERR - SEC.122/Int.
References:
Act: Section 1 "director", "parent advisory council", "purchase price", "use"; Part 3; Part 4; Section 165
PSTERR: Section 1 "francophone school", "Part 4 software", "Provincial school"
Bulletin PST 402
Interpretation (Issued: 2014/02; Revised: 2014/09)
Effective April 1, 2013, B.C. Reg. 117/2014 amends PSTERR section 122. In part, the amendment is consequential to the addition of the definition of "parent advisory council" in section 1 of the Act that was part of Bill 8, Budget Measures Implementation Act, 2014. Because the definition of "parent advisory council" is in the Act, the definition of "PAC" in PSTERR subsection 122(1) was simplified.
In addition, PSTERR subsection 122(2) was amended to provide that a PAC is eligible for a refund if the relevant school made a purchase using the PAC raised funds.
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 122 authority for the director to refund to a PAC, board of education or a francophone education authority, as applicable, tax paid on specified tangible personal property and Part 4 software purchased in whole or in part with PAC-raised funds. The amount of the refund is determined by the prescribed formula.
Section 123 – Motor Vehicle Transported Outside British Columbia
PSTERR - SEC.123/Int.-R.1
References:
Act: Section 1 "director", "Excise Tax Act", "motor vehicle", "sale", "use"; Part 3
Bulletin PST 400
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 123 authority for the director to refund tax paid refunds of PST paid on a motor vehicle purchased at a sale in British Columbia that is subsequently transported outside British Columbia for use outside British Columbia in specified circumstances
Subsection 123(1) provides that if the director is satisfied
(a) that a person who resides, ordinarily resides or carries on business in British Columbia purchased a motor vehicle at a sale in British Columbia and paid tax under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act on the purchase,
(b) that, within 30 days after the date on which the motor vehicle was purchased or the date on which the person took possession of the motor vehicle, whichever is later,
(i) the motor vehicle was transported outside British Columbia to another jurisdiction for use solely outside British Columbia, and
(ii) the person established residence in the other jurisdiction, and
(c) that the person
(i) paid sales tax under a law of the other jurisdiction in respect of the motor vehicle and has not obtained and is not entitled to obtain, under that law, a refund of or a credit or rebate for that sales tax, or
(ii) 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 motor vehicle 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,
the director must refund to the person the amount of tax paid referred to in PSTERR paragraph 123(1)(a).
Subsection 123(2) provides that if the director is satisfied
(a) that a person who does not reside, ordinarily reside or carry on business in British Columbia purchased a motor vehicle at a sale in British Columbia and paid tax under Part 3 of the Act on the purchase, and
(b) that, within 30 days after the date on which the motor vehicle was purchased or the date on which the person took possession of the motor vehicle, whichever is later, the motor vehicle was transported outside British Columbia for use primarily outside British Columbia,
the director must refund to the person the amount of tax paid.
Subsection 123(3) provides that if the director is satisfied
(a) that a person who does not reside, ordinarily reside or carry on business in British Columbia purchased a motor vehicle at a sale in British Columbia and paid tax under Part 3 of the Act on the purchase,
(b) that, within 180 days after the date on which the motor vehicle was purchased or the date on which the person took possession of the motor vehicle, whichever is later, the motor vehicle was transported outside British Columbia to another jurisdiction for use primarily outside British Columbia, and
(c) that the person
(i) paid sales tax under a law of the other jurisdiction in respect of the motor vehicle and has not obtained and is not entitled to obtain, under that law, a refund of or a credit or rebate for that sales tax, or
(ii) 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 motor vehicle 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,
the director must refund to the person the amount of tax paid referred to in PSTERR paragraph 123(3)(a).
R.1 Non-Resident Students In British Columbia (Issued: 2014/04)
A student who does not reside, ordinarily reside or carry on business in British Columbia pays PST on the purchase of a vehicle in British Columbia, removes it from the province within 30 days, and registers the vehicle in another jurisdiction. The student subsequently brings the vehicle into British Columbia for use while they attend an educational institution in British Columbia.
The student is not eligible for a refund of the PST paid on the vehicle because the vehicle was not transported outside British Columbia for use primarily outside British Columbia. This applies even if the student takes the vehicle with them outside the province when they return home for holidays and summer breaks.
Section 124 – Resold Motor Vehicle
PSTERR - SEC.124/Int.-R.1
References:
Act: Section 1 "director", "motor vehicle", "related service", "sale"; Part 3; Part 5 – Division 2
Bulletin PST 400
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 124 authority for the director to refund tax paid on
- a motor vehicle that is purchased at a sale in British Columbia that is resold within 7 days of purchase, and
- a taxable service provided to that vehicle during the period after the purchase and before the resale.
Subsection 124(1) provides that if the director is satisfied
(a) that a person purchased a motor vehicle at a sale in British Columbia and paid tax under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act on the purchase, and
(b) that, within 7 days after the date on which the motor vehicle was purchased or the date on which the person took possession of the motor vehicle, whichever is later, the motor vehicle was sold to another person,
the director must refund to the person referred to in PSTERR paragraph 124(1)(a) the amount of tax paid referred to in that paragraph.
Subsection 124(2) provides that if the director is satisfied that a person paid tax under Division 2 [Related Services in Relation to Tangible Personal Property] of Part 5 [Taxes in Relation to Services] of the Act in respect of a related service provided in relation to a motor vehicle referred to in PSTERR subsection 124(1) after the first sale referred to in that provision but before the resale referred to in that provision, the director must refund to the person the amount of tax paid.
R.1 Seven Day Limit (Issued: 2014/04)
Where the seventh day falls on a holiday (defined in section 29 of the Interpretation Act as including Sunday and listed statutory holidays), under subsection 25(2) of the Interpretation Act, the time for reselling the vehicle is extended to the next day that is not a holiday. In calculating the seven days, under subsection 25(5) of the Interpretation Act, the day of the first sale is not included.
Section 124.1 - Promotional Material
PSTERR - Sec.124.1/Int.
References:
Act: Section 1 “director”, “promotional distributor”, “promotional material”, “promotional sale”, “purchase price”; Section 30.1; Section 153.2
Bulletin PST 311; Bulletin PST 400
Interpretation (Issued: 2023/10)
Effective June 3, 2019, B.C. Reg. 113/2019 adds PSTERR section 124.1, which provides a promotional material refund. Subsection 124.1(1) requires the director to provide a refund to a promotional distributor if satisfied they (a) sold the promotional material in a promotional sale, and (b) paid tax in relation to the promotional material, other than in accordance with subsections 30.1(1) and 30.1(2) of the Act. Refunds in those circumstances are provided for by section 153.2 of the Act.
Subsection 124.1(2) provides that the amount of the refund is equal to the difference between the tax originally paid by the promotional distributor and the amount of tax that would have been payable if it had been calculated at the time of the promotional sale.
Section 125 – Vehicle, Boat Or Aircraft Returned To Seller
PSTERR - SEC.125/Int.
References:
Act: Section 1 "boat", "collector", "director", "purchase price", "purchaser", "sale", "vehicle"; Part 3
Bulletin PST 400
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 125 that if the director is satisfied
(a) that a purchaser purchased a vehicle, boat or aircraft from a person other than a collector (the seller) at a sale in British Columbia and paid tax under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act on the purchase, and
(b) that, within 30 days after the date on which the vehicle, boat or aircraft was purchased or the date on which the purchaser took possession of the vehicle, boat or aircraft, whichever is later,
(i) the purchaser returned the vehicle, boat or aircraft to the seller, and
(ii) in return for the vehicle, boat or aircraft, the seller refunded to the purchaser all or a portion of the purchase price,
the director must refund to the purchaser the amount of tax paid by the purchaser that is attributable to the amount of the refund of the purchase price.
Section 125.1 – Gift Of Vehicle, Boat Or Aircraft Between Family Members
PSTERR - SEC.125.1/Int.
References:
Act: Section 1 "boat", "director", "related individual", "vehicle"; Section 100
Interpretation (Issued: 2014/02)
Effective April 1, 2013, OIC 441/2013 added PSTERR section 125.1.
PSTERR section 125.1 provides authority for the director to refund to an individual tax paid on a vehicle, boat or aircraft received as a gift from a related individual (donor), where the related individual was later assessed an amount for tax payable on that item and paid that amount, plus any related penalty and interest.
Subsection 125.1(1) provides that in PSTERR section 125.1, "related individual" includes a sibling.
Subsection 125.1(2) provides that if the director is satisfied
(a) that an individual received a vehicle, boat or aircraft as a gift from a related individual,
(b) that the individual paid tax imposed under section 100 [tax on gift of vehicle, boat or aircraft given in British Columbia] of the Act in respect of the vehicle, boat or aircraft,
(c) that, after the date the individual received the vehicle, boat or aircraft, the related individual
(i) was assessed an amount for tax payable 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
(ii) paid the amount referred to in PSTERR subparagraph 125.1(2)(c)(i), any related penalty and any interest on that amount and the penalty, and
(d) that the related individual did not receive the vehicle, boat or aircraft as a gift during the 12 months before the date on which the related individual gave that vehicle, boat or aircraft to the individual,
the director must refund to the individual the amount of tax paid under section 100 of the Act in respect of that gift of the vehicle, boat or aircraft.
Section 125.2 – Gift Of Vehicle, Boat Or Aircraft To Registered Charity
PSTERR - SEC.125.2/Int.
References:
Act: Section 1 "boat", "director", "registered charity", "vehicle"; Section 100
Interpretation (Issued: 2014/02)
Effective April 1, 2013, OIC 441/2013 added PSTERR section 125.2.
PSTERR section 125.2 provides that if the director is satisfied
(a) that a registered charity received a vehicle, boat or aircraft as a gift,
(b) that the registered charity paid tax imposed under section 100 [tax on gift of vehicle, boat or aircraft given in British Columbia] of the Act in respect of the vehicle, boat or aircraft, and
(c) that, after the date the registered charity received the vehicle, boat or aircraft, the donor of the vehicle, boat or aircraft
(i) was assessed an amount for tax payable 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
(ii) paid the amount referred to in PSTERR subparagraph 125.2(c)(i), any related penalty and any interest on that amount and the penalty,
the director must refund to the registered charity the amount of tax paid under section 100 of the Act in respect of that gift of the vehicle, boat or aircraft.
Section 125.3 – Refund For Prizes, Draws And Awards
PSTERR - SEC.125.3/Int.
References:
Act: Section 1 "boat", "director", "vehicle"; Section 100
Interpretation (Issued: 2014/02)
Effective April 1, 2013, OIC 441/2013 added PSTERR section 125.3.
PSTERR section 125.3 provides authority for the director to refund to a person tax paid on a vehicle, boat or aircraft received as a prize, draw or award from a donor, where the donor was later assessed an amount for taxes payable on that item and paid that amount, plus any related penalty and interest.
Subsection 125.3(1) provides that in PSTERR section 125.3, "donor", in respect of a vehicle, boat or aircraft, means the person from whom the person referred to in PSTERR paragraph 125.3(2)(a) received the vehicle, boat or aircraft.
Subsection 125.3(2) provides that if the director is satisfied
(a) that a person received a vehicle, boat or aircraft as a result of any of the following:
(i) a lawful lottery scheme within the meaning of section 207 of the Criminal Code;
(ii) a contest, a game of chance or skill or mixed chance and skill, or a disposition by any mode of chance, skill or mixed chance and skill;
(iii) an achievement in a field of endeavour, including athletic or sporting events;
(iv) a draw or awarding of a prize if the only consideration provided by the person was in the form of an entrance or admission fee, a ticket fee or another similar charge,
(b) that the person did not receive the vehicle, boat or aircraft as a result of a private arrangement, including a wager, between 2 or more persons,
(c) that the person paid tax imposed under section 100 [tax on gift of vehicle, boat or aircraft given in British Columbia] of the Act in respect of the vehicle, boat or aircraft, and
(d) that, after the date the person received the vehicle, boat or aircraft, the donor
(i) was assessed an amount for tax payable 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
(ii) paid the amount referred to in PSTERR subparagraph 125.3(d)(i), any related penalty and any interest on that amount and the penalty,
the director must refund to the person the amount of tax paid under section 100 of the Act in respect of that gift of the vehicle, boat or aircraft.
Section 125.4 – Gift Of Tangible Personal Property From Outside Canada
PSTERR - SEC.125.4/Int.
References:
Act: Section 1 "boat", "director", "Excise Tax Act", "vehicle"; Section 49; Section 50; Section 55
PSTERR: Section 24; Section 25; Section 26
Bulletin PST 400
Interpretation (Issued: 2014/02; Revised: 2014/09)
Effective April 1, 2013, B.C. Reg. 117/2014 amends PSTERR section 125.4 to permit refunds to persons who pay tax under section 49 or section 50, and not only section 55, of the Act.
Effective April 1, 2013, OIC 441/2013 added PSTERR section 125.4.
PSTERR section 125.4 provides authority for the director to refund tax paid under section 55 of the Act on TPP, other than a vehicle, boat or aircraft, received as a gift, on which the donor had paid a specified tax.
Section 126 – Gifts, Prizes, Draws And Awards From Outside Canada
PSTERR - SEC.126/Int.
References:
Act: Section 1 "boat", "director", "Excise Tax Act", "related individual", "vehicle"; Section 49; Section 50; Section 51; Section 55
PSTERR: Section 18; Section 24; Section 25; Section 26
Bulletin PST 400
Interpretation (Issued: 2014/02; Revised: 2014/09)
Effective April 1, 2013, B.C. Reg. 117/2014 amends PSTERR section 126 to permit refunds to individuals who pay tax under section 49 or section 50, and not only section 55, of the Act.
Effective April 1, 2013, B.C. Reg. 97/2013 as amended by OIC 441/2013 provides under PSTERR section 126 authority for the director to refund to an individual tax paid under section 55 of the Act on a vehicle, boat or aircraft received as a gift, prize, draw or award, on which the person who provided the vehicle, boat or aircraft to the individual had paid a specified tax.
Section 126.1 - Refund Of Tax Paid By Contractor
PSTERR - SEC.126.1/Int.
References:
Act: Section 1 "affixed machinery", "band", "director", "First Nation individual", "improvement to real property"; Part 3; Section 37; Section 49
PSTERR: Section 1 "First Nation land"
Bulletin PST 501
Interpretation (Issued: 2014/09)
Effective April 1, 2013, B.C. Reg. 117/2014 provides under PSTERR section 126.1 authority for the director to refund PST to a contractor if they appropriate TPP from their tax-paid inventory for use in fulfilling a contract with the government of Canada, a person who would be exempt under the PSTA, or a First Nation individual or band.
In the case of First Nation individuals or bands, title and possession to the TPP must be transferred, under the terms of the contract, to the First Nation individual or band on First Nation land before the contractor uses the TPP to fulfil the contract.
Section 127 – Residential Energy Products Used For Residential Use
PSTERR - SEC.127/Int.-R.1
References:
Act: Section 1 "director", "residential dwelling", "residential energy product", "residential use"; Part 3; Part 3 – Division 11
Bulletin PST 400
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 127 that if the director is satisfied that a person paid tax under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act, other than Division 11 [Energy Products], in respect of a residential energy product used for residential use in a residential dwelling, the director must refund to the person the amount of tax paid by the person that can reasonably be attributed to the portion of the residential energy product used for residential use in a residential dwelling.
R.1 Long-Term Residential Care Facility (Issued: 2016/07)
Section (1)(f) of the definition of "residential dwelling" includes long-term residential care facilities. However, section (1)(m) excludes those parts of a building that are used for any purpose other than residential use.
The "residential dwelling" should be considered to include those areas used by facility staff in operating the facility (e.g., offices, kitchens, storage areas), but not areas used for staff for purposes not directly related to the operation of the facility.
In the case of long-term residential care facilities, the entire facility may be for residential use. However, in other cases, parts of the long-term care facility may be used for both residential and non-residential purposes. For example, part of the floor space may be leased out to a doctor, pharmacy, restaurant, hairdresser or convenience store, for example.
For information on the areas of a long-term residential care facility that qualify for a refund of the PST paid on residential energy products, see PSTERR/SEC.1/RESIDENTIAL DWELLING/R.4. Please note that while some of these areas may not be used solely for a residential purpose (e.g., a boiler room or maintenance facility), provided that they are principally used in relation to the residential facilities, they should be considered to form part of the residential component eligible for the refund.
Continuing care facilities, including congregate, personal, intermediate, and extended care, are eligible for exemption as rest or nursing homes if the accommodation provided is intended as the occupants' primary place of residence, either temporarily or permanently. This includes continuing care facilities and nursing home units in hospitals, as long as the following conditions are met.
- The hospital has a separate building, wing, or floor that is dedicated to a continuing care or nursing home facility.
- The facility is residential in that it is the patient's primary place of residence and would ordinarily contain personal effects (i.e., it is not simply a hospital room where continuing care is being administered).
The intent of this provision is to provide the same exemption to residents of continuing care facilities as is provided to persons living in apartments, single family homes, etc. (Even though the exemption is applied to purchases made by the facility, the reduced cost is factored in to the charges passed on to the residents). Because of this, when determining what portion of a facility qualifies for the exemption, consider what features or functions you would find in a more typical type of residence, i.e., what portions of the facility are "residential"? See PSTERR/SEC.1/RESIDENTIAL DWELLING/R.4 for specific areas of such a facility that are considered residential and non-residential.
The four steps below will help you determine the percentage of the facility that qualifies as residential. This percentage is applied to the charges for electricity and natural gas to determine the portion that is tax exempt.
Please note - in determining the floor area, there is lots of room for common sense. Where building plans are available they can be used. However, where they are not available, a measuring tape or even "paces" can be used, provided the same method is used throughout and its use has the agreement of the facility operator. You are determining the ratio between exempt and non-exempt areas, not an absolute numerical description of the facility.
Step One
Determine the total floor area of the facility that is serviced by the incoming electricity and natural gas.
Step Two
Subtract from the total floor area, any floor area that has been leased out to a non-facility enterprise or business. Such areas could include a doctor's office, pharmacy, offices to support community services, general store, coffee shop, etc.
These areas are to be subtracted even if the residents of the facility are some or all of the customers of that enterprise. It is the fact that the areas are out of the direct control of the residential facility that is the determining factor.
Subtract other areas that are not used solely for a residential purpose (or in the case of areas that serve both residential and non-residential areas -- such as the electrical room or maintenance room -- are principally used for residential purposes).
Step Three
Of the remaining floor area, determine the floor area that qualifies as residential.
Please note - in some cases, a residential facility will have areas that are used for both residential and non-residential purposes. For example, meals-on-wheels volunteers may use the kitchen of a residential facility to prepare meals for delivery, or an area of the facility may be used to accommodate attendees of an adult day-care.
Where the full space is used for residential purposes, it qualifies even if the same area is concurrently, or at different times, used occasionally for non-residential purposes. In other words, if the entire kitchen is used to prepare meals for the residents, it will be considered residential even if meals-on-wheels uses it during slow times to prepare meals for delivery. Similarly, where the participants of an adult day-care mingle with the residents and use the same space, those spaces qualify as residential.
However, if the meals-and-wheels are prepared in a part of the kitchen that is not generally used to prepare residents' meals, or where the adult day-care attendees occupy a space that is not usually used by the facility's residents, those spaces do not qualify as residential.
Step Four
Calculate the relationship as a percentage:
Residential area
Total area
x 100 = Percentage that is residential
Where the continuing care facility is metered with a hospital, a breakdown should be made of the total floor area used as the continuing care unit as a percentage of the total hospital area. A discount factor should be applied to allow for the extra power consumed in the main hospital area by high use equipment, machinery, and elevators.
Section 128 – Substances On Which Tax Paid Under Motor Fuel Tax Act
PSTERR - SEC.128/Int.
References:
Act: Section 1 "director"
PSTERR: Section 1 "heating oil"
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 128 authority for the director to refund to a person tax paid on heating oil or non-motor fuel oil where that person also paid tax on that heating oil or non-motor fuel oil under the Motor Fuel Tax Act.
Subsection 128(1) provides that in PSTERR section 128, "non-motor fuel oil" has the same meaning as in the Motor Fuel Tax Act.
Subsection 128(2) provides that if the director is satisfied that
(a) a person paid tax under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act in respect of heating oil or non-motor fuel oil and has not obtained and is not entitled to obtain, under the Act, a refund of that tax, and
(b) the person paid tax under subsection 16.7(5) [tax on heating oil or non-motor fuel oil used for unauthorized purpose] of the Motor Fuel Tax Act in respect of the heating oil or non-motor fuel oil and has not obtained and is not entitled to obtain, under that Act, a refund of that tax,
the director must refund to the person the amount of tax paid referred to in PSTERR paragraph 128(2)(a).
Section 129 – Tangible Personal Property Used For Farm Purpose
PSTERR - SEC.129/Int.
References:
Act: Section 1 "director", "related service"; Part 3; Part 5 – Division 2
PSTERR: Section 1 "obtain", "qualifying farmer"; Section 46; Schedule 2
Bulletin PST 400
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 129 authority for the director to refund to a person tax paid on tangible personal property listed in PSTERR Schedule 2, and on qualifying parts and related services for that tangible personal property, obtained within 2 years prior to the person becoming a qualifying farmer.
Subsection 129(1) provides that in PSTERR section 129, "qualifying part" has the same meaning as in PSTERR subsection 46(1) [farmers].
Subsection 129(2) provides that if the director is satisfied that
(a) a person obtained tangible personal property described in PSTERR Schedule 2 [Tangible Personal Property for Farm Purpose] and paid tax under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act in respect of the tangible personal property,
(b) the person, from the date on which the tangible personal property was obtained, used the tangible personal property solely for a farm purpose, and
(c) the person, within 2 years after the date on which the tangible personal property was obtained, became a qualifying farmer,
the director must refund to the person the amount of tax paid.
Subsection 129(3) provides that if the director is satisfied that
(a) a person obtained a qualifying part and paid tax under Part 3 of the Act in respect of the qualifying part,
(b) the person used the qualifying part
(i) as a replacement part for tangible personal property described in Schedule 2, or
(ii) in the manufacture or repair of tangible personal property described in Schedule 2,
(c) the person, from the date on which the qualifying part was used for a purpose referred to in PSTERR paragraph 129(3)(b), used the tangible personal property solely for a farm purpose, and
(d) the person, within 2 years after the date on which the qualifying part was obtained, became a qualifying farmer,
the director must refund to the person the amount of tax paid.
Subsection 129(4) provides that if the director is satisfied that
(a) a person paid tax under Division 2 [Related Services in Relation to Tangible Personal Property] of Part 5 [Taxes in Relation to Services] of the Act in respect of a related service provided in relation to tangible personal property described in Schedule 2,
(b) the person, from the date on which the service was provided, used the tangible personal property solely for a farm purpose, and
(c) the person, within 2 years after the date on which the service was provided, became a qualifying farmer,
the director must refund to the person the amount of tax paid.
Section 130 – Tangible Personal Property And Software Used For Commercial Fishing Purpose
PSTERR - SEC.130/Int.
References:
Act: Section 1 "boat", "director", "related service", "software", "use"; Part 3; Part 5 – Division 2
PSTERR: Section 1 "fishing equipment", "obtain", "qualifying commercial fisher"; Section 48; Schedule 3
Bulletin PST 400
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 130 authority for the director to refund to a person tax paid on
- a boat, fishing net or fishing equipment,
- software designed for electronic monitoring equipment,
- qualifying parts for a boat, fishing net or fishing equipment,
- materials for a boat, and
- related services for a boat, fishing net or fishing equipment,
obtained within one year prior to the person becoming a qualifying commercial fisher.
Subsection 130(1) provides that in PSTERR section 130, "qualifying part" has the same meaning as in PSTERR subsection 48(1) [commercial fishers].
Subsection 130(2) provides that if the director is satisfied that
(a) a person obtained a boat, fishing net or fishing equipment and paid tax under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act in respect of the boat, fishing net or fishing equipment,
(b) the person, from the date on which the boat, fishing net or fishing equipment was obtained, used the boat, fishing net or fishing equipment solely for a commercial fishing purpose, and
(c) the person, within one year after the date on which the boat, fishing net or fishing equipment was obtained, became a qualifying commercial fisher,
the director must refund to the person the amount of tax paid.
Subsection 130(3) provides that if the director is satisfied that
(a) a person obtained software designed for use on electronic monitoring equipment described in item 22 of PSTERR Schedule 3 [Fishing Equipment for Commercial Fishing Purpose] and paid tax under Part 4 [Taxes in Relation to Software] of the Act in respect of the software,
(b) the person, from the date on which the software was obtained, used the electronic monitoring equipment solely for a commercial fishing purpose, and
(c) the person, within one year after the date on which the software was obtained, became a qualifying commercial fisher,
the director must refund to the person the amount of tax paid.
Subsection 130(4) provides that if the director is satisfied that
(a) a person obtained a qualifying part and paid tax under Part 3 of the Act in respect of the qualifying part,
(b) the person used the qualifying part for the repair or reconditioning of a boat, fishing net or fishing equipment,
(c) the person, from the date on which the qualifying part was used for a purpose referred to in PSTERR paragraph 130(4)(b), used the boat, fishing net or fishing equipment solely for a commercial fishing purpose, and
(d) the person, within one year after the date on which the qualifying part was obtained, became a qualifying commercial fisher,
the director must refund to the person the amount of tax paid.
Subsection 130(5) provides that if the director is satisfied that
(a) a person obtained materials for use in the repair or reconditioning of a boat and paid tax under Part 3 of the Act in respect of the materials,
(b) the person used the materials for the repair or reconditioning of the boat,
(c) the person, from the date on which the materials were used for a purpose referred to in PSTERR paragraph 130(5)(b), used the boat solely for a commercial fishing purpose, and
(d) the person,
(i) on the date on which the materials were obtained, was a qualifying commercial fisher, or
(ii) within one year after the date on which the materials were obtained, became a qualifying commercial fisher,
the director must refund to the person the amount of tax paid.
Subsection 130(6) provides that if the director is satisfied that
(a) a person paid tax under Division 2 [Related Services in Relation to Tangible Personal Property] of Part 5 [Taxes in Relation to Services] of the Act in respect of a related service provided in relation to a boat, fishing net or fishing equipment,
(b) the person, from the date on which the service was provided, used the boat, fishing net or fishing equipment solely for a commercial fishing purpose, and
(c) the person, within one year after the date on which the service was provided, became a qualifying commercial fisher,
the director must refund to the person the amount of tax paid.
Section 131 – Tangible Personal Property Used For Aquaculture Purpose
PSTERR - SEC.131/Int.
References:
Act: Section 1 "director", "related service"; Part 3; Part 5 – Division 2
PSTERR: Section 1 "obtain", "qualifying aquaculturist"; Section 49; Schedule 4
Bulletin PST 400
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 131 authority for the director to refund to a person tax paid on tangible personal property listed in PSTERR Schedule 4, and on qualifying parts and related services for that tangible personal property, obtained within 6 months prior to the person becoming a qualifying aquaculturist.
Subsection 131(1) provides that in PSTERR section 131, "qualifying part" has the same meaning as in PSTERR subsection 49(1) [aquaculturists].
Subsection 131(2) provides that if the director is satisfied that
(a) a person obtained tangible personal property described in PSTERR Schedule 4 [Tangible Personal Property for Aquaculture Purpose] and paid tax under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act in respect of the tangible personal property,
(b) the person, from the date on which the tangible personal property was obtained, used the tangible personal property solely for an aquaculture purpose, and
(c) the person, within 6 months after the date on which the tangible personal property was obtained, became a qualifying aquaculturist,
the director must refund to the person the amount of tax paid.
Subsection 131(3) provides that if the director is satisfied that
(a) a person obtained a qualifying part and paid tax under Part 3 of the Act in respect of the qualifying part,
(b) the person used the qualifying part
(iii) as a replacement part for tangible personal property described in Schedule 4, or
(iv) in the manufacture or repair of tangible personal property described in Schedule 4,
(c) the person, from the date on which the qualifying part was used for a purpose referred to in PSTERR paragraph 131(3)(b), used the tangible personal property solely for an aquaculture purpose, and
(d) the person, within 6 months after the date on which the qualifying part was obtained, became a qualifying aquaculturist,
the director must refund to the person the amount of tax paid.
Subsection 131(4) provides that if the director is satisfied that
(a) a person paid tax under Division 2 [Related Services in Relation to Tangible Personal Property] of Part 5 [Taxes in Relation to Services] of the Act in respect of a related service provided in relation to tangible personal property described in Schedule 4,
(b) the person, from the date on which the service was provided, used the tangible personal property solely for an aquaculture purpose, and
(c) the person, within 6 months after the date on which the service was provided, became a qualifying aquaculturist,
the director must refund to the person the amount of tax paid.
Section 132 – Claiming Races
PSTERR - SEC.132/Int.
References:
Act: Section 1 "director", "Excise Tax Act"; Part 3
Bulletin PST 400
Interpretation (Issued: 2014/02)
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 132 authority for the director to refund to a person tax paid on the repurchase of a horse at a claiming race, where the person had paid a specified tax on their previous purchase of that horse.
Subsection 132(1) provides that subject to PSTERR subsection 132(2), if the director is satisfied that, on or after April 1, 2013, a person repurchased a horse at a claiming race and paid tax under Part 3 [Taxes in Relation to Tangible Personal Property] of the Act in respect of the repurchase, the director must refund to the person the amount of tax paid.
Subsection 132(2) provides that as a limit on PSTERR subsection 132(1), the amount of a refund under that subsection must not exceed the amount of tax paid by the person, on the most recent purchase of that horse by that person before the horse's repurchase,
(a) under the Act or the Social Service Tax Act and for which that person has not obtained and is not entitled to obtain a refund under those Acts, or
(b) 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 for which that person has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.
Section 132 – Claiming Races
PSTERR - SEC.132.1/Int.
References:
Act: Section 1 "director", "software"; Part 3; Part 4; Section 32
PSTR: Section 14
Bulletin PST 317
Interpretation (Issued: 2014/09)
Effective April 1, 2013, B.C. Reg. 117/2014 provides under PSTERR section 132.1 authority for the director to refund PST to a person who self-assessed PST on TPP or software originally obtained exempt using a tax payment agreement.
Taxpayers with tax payment agreements are required under subsection 32(5) of the Act and PSTR section 14 to self-assess PST on TPP or software obtained exempt under the tax payment agreement if that TPP or software is not used within 12 months. If the holder of a tax payment agreement has self-assessed PST in accordance with this requirement and subsequently uses the TPP or software for an exempt purpose, they may receive a refund under PSTERR section 132.1.
Section 133 – Purchase Of Accommodation for 27 Days or More
PSTERR - SEC.133/Int.
References:
Act: Section 1 "accommodation", "director", "tourism agent"; Part 5 – Division 3
PSTERR: Subsection 1(2); Section 78
Bulletin PST 400
Interpretation (Issued: 2014/02; Revised 2021/10)
Effective December 16, 2019, B.C. Reg. 274/2019 amended PSTERR section 133 to replace “more than one month” with “27 days or more” to provide the same length of continuous stay in the refund provision as required for an exemption under section 78 [Exemptions in relation to accommodation] of the PSTERR.
Subsection 133(2) was added for transitional purposes. It requires that in order to be eligible for this refund of tax paid on accommodation purchased before October 1, 2018, the unit of accommodation must have been occupied for a continuous period of more than one month. For purchases on or after October 1, 2018, a unit of accommodation must be occupied for a continuous period of 27 days or more to be eligible for this refund.
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 133 authority for the director to refund tax, in certain situations, to a person who paid tax in respect of a purchase of accommodation and that accommodation was provided for a continuous period of more than one month.
The refund addresses situations where a person pays tax in respect of a purchase of accommodation for a time period less than the period required for an exemption under section 78 of the PSTERR but then purchases additional continuous days that, in total, meet the criteria of “more than one month” for an exemption from tax. The provision allows for tax paid in respect of the initial purchase of accommodation to be refunded where the continuous period of purchase meets or exceeds the “more than one month” rule.
Section 134 – Refund Or Deduction For Bad Debts
PSTERR - SEC.134/Int.
References:
Act: Section 1 "director", "Excise Tax Act", "registrant"; Part 3
Bulletin CTB 001
Interpretation (Issued: 2014/02; Revised: 2016/01)
Effective June 9, 2015, B.C. Reg. 102/2015 added subsection 134(1.1). This subsection allows the director to require a registrant to submit information or supporting documentation when making a bad debt deduction on a collector's return.
Although the director may require a registrant to submit information or documentation pursuant to this provision, the procedure set out in Bulletin CTB 001 reflects current practice: a registrant may make a bad debt deduction without submitting information or documentation with the collector's return, but must keep supporting documents. The ministry may make a specific request for these documents or may review them in a routine audit.
Effective April 1, 2013, B.C. Reg. 97/2013 provides under PSTERR section 134 the formulas to calculate the "specified amount" of a refund, deduction or repayment under section 159 of the Act in relation to a bad debt.
Subsection 134(1) provides that for the purposes of the definition of "specified amount" in subsection 159(1) [refund or deduction for bad debts] of the Act, the specified amount in relation to a transaction must be determined in accordance with the following formula:
specified amount = tax remitted x [amount unpaid /total amount payable)]
where
amount unpaid = the amount written off as unrealizable or uncollectable in respect of the transaction, but not including interest charges;
tax remitted = the amount of tax referred to in paragraph 159(2)(b) of the Act remitted by the person in respect of the transaction;
total amount payable = the full amount of the consideration in respect of the transaction including all applicable taxes, but not including interest charges.
Subsection 134(2) provides that for the purposes of subsection 159(6) of the Act, the amount a registrant must add to the tax remitted by the registrant under the Act must be determined in accordance with the following formula:
amount to be added = tax remitted x [amount recovered /total amount payable)]
where
amount recovered = the amount recovered by the registrant that gives rise to the obligation under subsection 159(6) of the Act to add an amount to the tax remitted by the registrant under the Act;
tax remitted = the amount of tax referred to in paragraph 159(2)(b) of the Act remitted by the person in respect of the transaction;
total amount payable = the full amount of the consideration in respect of the transaction including all applicable taxes, but not including interest charges.
Subsection 134(3) provides that for the purposes of subsection 159(7) of the Act, the amount a person must pay to the government must be determined in accordance with the following formula:
amount to be paid = tax remitted x [amount recovered /total amount payable)]
where
amount recovered = the amount recovered by the person that gives rise to the obligation under subsection 159(7) of the Act to pay an amount to the government;
tax remitted = the amount of tax referred to in paragraph 159(2)(b) of the Act remitted by the person in respect of the transaction;
total amount payable = the full amount of the consideration in respect of the transaction including all applicable taxes, but not including interest charges.