Tax verification letter

To be awarded a contract valued at $100,000 or more (including all fees, expenses and options to extend or renew) with the Province, vendors must confirm that they’re compliant with B.C. corporate income tax filing obligations and provincial sales tax filing and payment obligations by providing a tax verification letter.

This ensures that awarding contracts for goods, services and construction is done in a fair manner and demonstrates good stewardship of taxpayer dollars.

Vendors must meet the following requirements to obtain a tax verification letter, unless an exception applies:

• Their B.C. corporate income tax and provincial sales tax (PST) filings must be up-to-date.
• They must not have a PST balance owing, unless:
  • they have an acceptable payment arrangement in place with the B.C. Ministry of Finance, or
  • they have a PST matter under appeal with the B.C. Ministry of Finance and the PST balance owing relates to that matter.

If vendors don’t have a PST account with the Province or if they’re not a corporation subject to B.C. corporate income tax, they must still request, and will be given, a tax verification letter.

Any vendor who isn’t sure if they meet the requirements should contact the B.C. Ministry of Finance for assistance.

Tax verification letters can be obtained at no cost.

Tax verification letters must be issued by the B.C. Ministry of Finance and will:

• Indicate the vendor’s legal name
• Indicate the date of issue and the period of validity (for example, one year)
• Be able to be used for multiple contracts

When to provide a tax verification letter

Unless an exception applies, before the Province may sign a contract for goods, services or construction valued at, including all options to extend or renew, $100,000 or more on or after January 1, 2020, the vendor must provide a tax verification letter that is valid on the date the Province signs that contract.

The Province will attach a tax verification schedule to all applicable contracts and a valid tax verification letter will need to be provided before the Province may extend or renew such contracts.

If the original tax verification letter is still valid as of the date the contract is extended or renewed, a new tax verification letter is not needed.

A contract that was signed before January 1, 2020, will not need a tax verification letter unless that contract is extended or renewed.

Exceptions when you do not need a tax verification letter

The following contracts for goods, services and construction do not require a tax verification letter:

• Contracts valued at less than $100,000, including all fees, expenses and all options to renew or extend
• Contracts being entered into in response to an unforeseen emergency
• Contracts where only one vendor is qualified to provide the goods, services or construction

Contracts related to government transfer payments that are covered by Chapter 21 of the Province’s Core Policy and Procedures Manual (grants, entitlements and shared cost arrangements) are excluded from the requirement.

Obtaining a tax verification letter

A tax verification letter can be used for multiple contracts and is valid for one year from the date it is issued.

If your business number changed within one year from the date your tax verification letter was issued, you must request a new one using your new business number. This applies even if you’re currently in a contract with the B.C. government.

Note: the legal entity entering into the contract must be the same entity listed on the tax verification letter. 

You can request a tax verification letter online or by mail:

Canadian vendors competing on a contract that have not done business previously in B.C.

If the B.C. Ministry of Finance does not have a record of a potential vendor’s B.C. corporate income tax because it has never needed to file a B.C. return, the vendor will be asked to provide a Filing and Balance Confirmation (FBC) letter from the Canada Revenue Agency (CRA).  An FBC letter can be generated automatically through the CRA’s My Business Account service.

A copy of the FBC letter will be required to be submitted to the B.C. Ministry of Finance before a tax verification letter can be issued.

This will extend the usual less than 24 hour turnaround time that it normally takes to issue a Tax Verification Letter.

International vendors competing on a contract

If an international vendor has a Business Number with the CRA, the vendor will be asked to provide an FBC letter from the CRA.  An FBC letter can be generated automatically through the CRA’s My Business Account service.

If an international vendor does not have a Business Number with the CRA, please contact the B.C. Ministry of Finance at 1-877-387-3332.   

In these cases, the vendor may need to provide additional information or obtain documentation from the CRA to support the request for Tax Verification Letter.  This will extend the usual less than 24 hour turnaround time it normally takes to issue a letter so these vendors are advised to begin the process as soon as possible.

What to do with your tax verification letter

Provide a copy of your tax verification letter to the contact person at the procuring ministry. They must receive your letter before the contract can be awarded, extended or renewed unless an exception applies.