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BC PST Exemptions

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Provincial Sales Tax -> BC PST -> BC PST exemptions

BC PST Exemptions

With the return to PST effective April 1, 2013, the exemption information below will be updated as new information becomes available.  The BC government page on Tax Exemptions indicates that all permanent exemptions from the previous PST system will be re-implemented, so the information below should still be accurate.

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Some of the items which are exempt from PST in BC on a permanent basis:

BC Provincial Sales Tax Act (PST Act)

The entire Provincial Sales Tax Exemption and Refund Regulation (PSTERR) (pdf) can be found on the BC Consumer Taxes Publications web page - scroll down to Legislation & Regulations.

bullet sales of used clothing or used footwear if the purchase price of the item of clothing or footwear is less than $100 - PSTERR s. 10
bullet clothing patterns, and yarn or fabrics purchased for the purpose of making or repairing clothing - PSTERR s. 11
bulletwater in liquid or frozen form, and food products for human consumption, other than prescribed food products - PST Act s. 139
bullet clothing and footwear for children 14 and under, including baby blankets, cloth diapers, mittens and gloves, belts, uniforms (including sports, school or recreational uniforms), etc.  More information on this topic can be found in the BC Small Business and Revenue Bulletin PST 201 Exempt Children's Clothing and Footwear (pdf) - PSTERR s. 9.  The exemption does not apply to athletic equipment, including supports and padding (e.g. shin guards, shoulder harnesses).
bullet abrasives, dies (see detailed definition - does not include die set or tap set used for cutting threads), grinding wheels, moulds, jigs, patterns, steel wool, etc. that are consumed or used in the manufacture, production, service or repair of tangible personal property or real property - PSTERR s. 39. New Bulletin not yet available.
bullet books containing no advertising, employee newsletters, student yearbooks, sheet music, magazines or periodicals if at least 10% of content is technical, literary, editorial and pictorial content; newspapers if at least 20% of content is editorials, news and articles of local or common interest content - PSTERR s. 16
bullet insulation and other tangible personal property used to conserve energy, as per PSTERR s. 30.  This includes thermal insulation, weather stripping, polystyrene forming blocks which will serve as primary insulation for a completed building, wind-powered generating equipment, solar panels, etc.
bulletsafety equipment and apparel as per PSTERR s. 35, including residential smoke alarms with a price of less than $250, bicycle lights, children's car seats, first aid kits, safety helmets/vests, etc.
bulletnon-motorized bicycles, non-motorized tricycles with each wheel having a diameter of 350 mm or more; aircraft powered by a turbine, etc. as per PSTERR s. 55 re transportation
bullet many drugs, household medical aids, and health-related equipment and supplies, as per PSTERR s. 3 to 5
bulletdevices for use in transportation of individuals with disabilities, as per PSTERR s. 7.  No new bulletin is available yet
bullet equipment lease/rental, if the lease rental includes an operator of the equipment - see new Notice 2012-012 Leases of Tangible Personal Property (Goods) (pdf), which includes.
bullet work-related safety equipment, such as safety glasses, safety belts, chainsaw safety pads, and many other items
bulletgeneral safety equipment, such as child car seats, life jackets, portable fire extinguishers, and many other items.

Farmers

From BC PST Frequently Asked Questions:

To substantiate an exemption from PST on specified goods used for a farm purpose, a qualifying farmer will be required to provide to the seller or lessor of the goods either their Farmer Identity Card issued by the BC Agriculture Council or a completed declaration form.

FIN 458 Certificate of Exemption - Farmer is available on BC PST Forms page.

Exemptions for farming, fertilizers, fishing and aquaculture are included in PSTERR s. 44 to 49 (tangible personal property), and s. 74 & 76 (services).  The Schedules at the end of the PSTERR list tangible personal property (TPP) for farm purposes, fishing equipment for commercial fishing purposes, and TPP for aquaculture purposes.

Bulletins for Farmers, Fishers and Aquaculturists are available on the BC PST Publications page.

Real Property Contractors

When a contractor is hired to supply and install improvements to real property, for instance to do a kitchen renovation, then depending on the contractor, PST may still be payable on the tangible personal property (TPP) which is supplied and installed.  See Bulletin PST 104 Real Property Contractors (pdf):

  1. Generally, the contractor must pay PST on the goods that are supplied and installed in the course of the renovation.  In this case, the customer would not be charged PST on the portion of the price that is applicable to the goods.  However, because the contractor has paid the PST, this will be built into the price charged.
  2. The contractor is exempt from paying the PST on the goods that are supplied and installed, if:
    1. the contractor and their customer enter into an agreement that specifically states that the customer is liable for the PST on the goods, and
    2. the agreement sets out the purchase price of the goods.

Other resources:

BC PST Forms & Publications

Rebates and Incentives For Your Home - this is a BC Government web page regarding home energy efficiency incentives.  However, the LiveSmart BC program ends on March 31, 2013.

 

Revised: April 03, 2014

 

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