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BC PST Exemptions
Canadian Tax and
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of the items which are exempt from PST in BC on a permanent basis:
effective February 18, 2015, lift chairs designed to facilitate
standing up or sitting down, when sold on the prescription of a
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
clothing patterns, and yarn or fabrics purchased
for the purpose of making or repairing clothing - PSTERR s. 11
water in liquid or frozen form, and food products for human consumption,
other than prescribed food products - PST Act s. 139.
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). See
below for more information.
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.
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, Bulletin
PST 205 Books, Magazines, Newspapers and Other Publications.
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. See Bulletin
PST 203 Energy, Energy Conservation and the ICE Fund Tax.
Remembrance Day poppies and wreaths, and natural, cut
evergreen trees sold as Christmas trees as per PSTERR s. 51
work-related safety equipment, such as safety glasses,
safety belts, chainsaw safety pads, and many other items, as per PSTERR
general safety equipment, such as child car seats, life
jackets, portable fire extinguishers, and many other items as per PSTERR
s. 34 & 35.
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.
As noted above, natural, cut
evergreen trees sold as Christmas trees are sold exempt from
PST, as per PSTERR 51.
From BC PST Frequently Asked Questions:
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
to 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.
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
the agreement sets out the purchase price of the goods.