The entire Provincial Sales Tax Exemption and Refund Regulation (PSTERR) in
pdf format can
be found on the BC
Consumer Taxes Publications web page - scroll down to Legislation &
Regulations. The BC Laws website has the html version of the Provincial
sales Tax Exemption and Refund Regulation (PSTERR). Many sections are
referenced in the list of exempt items below.
Since April 1, 2019, all electricity in BC has been exempt from PST.
From January 1, 2018 to March 31, 2019, the rate on taxable purchases of electricity (e.g.
electricity for business use) was reduced to 3.5% from 7%.
See Bulletin
PST 203 Energy, Energy Conservation and the ICE Fund Tax.
Some
of the items which are exempt from PST in BC on a permanent basis:
Effective March 1, 2023: Automated electric defibrillators (AEDs)
Effective April 21, 2021: electric bicycles and tricycles, as well as
conversion kits used to electrify conventional bicycles and tricycles, and
parts and services for electric bicycles and tricycles, are exempt from PST.
See Bulletin
PST 204, Bicycles and Tricycles.
effective February 18, 2015, lift chairs designed to facilitate
standing up or sitting down, when sold on the prescription of a
practitioner
Until September 30, 2026: clothing patterns, and yarn or fabrics purchased
for the purpose of making or repairing clothing. See proposal under BC
2026 Budget.
clothing and footwear for
children 14 and under, including baby blankets, cloth diapers, mittens and
gloves, belts, uniforms (including sports, school or recreational
uniforms) (exemption does not apply to athletic equipment), sales of used clothing or used footwear
if the purchase price of the item of clothing or footwear is less than $100
- See PST
201 Children's Clothing and Footwear.
water in liquid or frozen form, and food products for human
consumption,
other than prescribed food products - PST Act s. 139.
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 - See PST
110 Production Machinery and Equipment Exemption.
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 - see Bulletin
PST 205 Books, Magazines, Newspapers and Other Publications.
Remembrance Day poppies and wreaths, and natural, cut
evergreen trees sold as Christmas trees, non-motorized bicycles, non-motorized tricycles with each wheel
having a diameter of 350 mm or more; aircraft powered by a turbine,
and many other items. See Other
exemptions for goods.
many drugs, household medical aids, and health-related
equipment and supplies, and devices for use in transportation of individuals with
disabilities as per PST
207 Medical Supplies and Equipment
work-related safety equipment, such as safety glasses,
safety belts, chainsaw safety pads, general safety equipment such as
esidential smoke alarms with a price of less than $250, bicycle
lights, children's car seats, first aid kits, safety helmets/vests, life
jackets, portable fire extinguishers, and many other items, as per PST
100 Safety Equipment and Protective Equipment.
Children's
Clothing & Footwear, and Team Purchases
The exemption certificate that is required in order to
purchase adult size clothing and footwear for children under 15 is FIN425
(pdf). This form can also be used when an organization, such as a sports
team, is purchasing exempt merchandise for multiple children. Most
retailers have this form on hand to be completed when needed.
Farmers
As noted above, natural, cut
evergreen trees sold as Christmas trees are sold exempt from
PST. See Other
exemptions for goods.
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.
As per the BC 2016
Budget, effective February 17, 2016 telescopic handlers, skid steers and
polycarbonate greenhouse panels obtained by qualifying farmers for use solely
for a farm purpose are exempt from provincial sales tax. The panels must
be purchased in a minimum quantity of 500 square metres to qualify.
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 501 Real Property Contractors (pdf):
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.
The contractor is exempt from paying the PST on the goods that are
supplied and installed, if:
the contractor and their customer enter into an agreement that
specifically states that the customer is liable for the PST on the
goods, and
the agreement sets out the purchase price of the goods.