Guide to Provincial Sales Tax Rates in BC

By L.Kenway BComm CPB Retired

Edited October 3, 2024  |  Revised April 10, 2024  |  Originally Published on Bookkeeping-Essentials.com in March 2013

WHAT'S IN THIS ARTICLE
Introduction | Interprovincial Rate Comparison | Current Rates | Exemptions | Calculating PST | Invoicing Requirements | Apply for a Refund | Reporting & Remitting | PST & WCB Deadlines | Penalties | Imports & Exports | Requirements to Register, Collect & Remit PST | Online Sales | PST vs GST HST | Wrap-up

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Introduction to Provincial Sales Tax Rates in BC

The world of taxation can often seem complex and daunting for business owners. This is especially true when it comes to navigating Provincial Sales Tax rates in BC. This article aims to unravel the intricacies of British Columbia's Provincial Sales Tax (PST) system, providing insight into their various rates to applicable exemptions.

Comparing BC's PST Rates with Other Provinces 

PST rates varies across Canada. As of April 2024, here's how rates across Canada compare to BC's general rate PST:

• BC’s rate is moderate compared to other provinces that charge provincial sales tax.
• Federal non-participating provinces:  Saskatchewan, for example, has a 6% PST rate while Manitoba has an 7% RST rate, and QST is 9.975% in Quebec. Alberta and the territories do not have PST.  
• Federal participating provinces: The provincial portion of HST in the Atlantic provinces is 10% and 8% in Ontario.

Provincial Sales Tax Rates In BC 

Passenger Vehicles - Non ZEV (Zero Emission Vehicle) And ZEV [As Of February 22, 2022]

Vehicle Purchase Price	Private Sale & Gifted	Leased or Purchased From GST registrant	Reference
Non-ZEV Passenger Vehicles Less Than $55,000	12%	7%	PST Bulletin 308
Non-ZEV Passenger Vehicles $55,000-$55,999	12%	8%	PST Bulletin 308
Non-ZEV Passenger Vehicles $56,000-$56,999	12%	9%	PST Bulletin 308
Non-ZEV Passenger Vehicles $57,000 - $124,999	12%	10%	PST Bulletin 308
Non-ZEV Passenger Vehicles $125,000-$149,999	15%	15%	PST Bulletin 308
Non-ZEV Passenger Vehicles $150,000 plus	20%	20%	PST Bulletin 308
ZEV Passenger Vehicles Less Than $75,000	12%	7%	PST Bulletin 308
ZEV Passenger Vehicles $75,000-$75,999	12%	8%	PST Bulletin 308
ZEV Passenger Vehicles $76,000-$76,999	12%	9%	PST Bulletin 308
ZEV Passenger Vehicles $77,000 - $124,999	12%	10%	PST Bulletin 308
ZEV Passenger Vehicles $125,000-$149,999	15%	15%	PST Bulletin 308
ZEV Passenger Vehicles $150,000 plus	20%	20%	PST Bulletin 308

Provincial Sales Tax Rates In BC

Other Vehicles & Fuel Types

Items	Other Tax Rates	Reference
Passenger Vehicle Rental Tax (PVRT)	$1.50 for each day (i.e. 24-hour period), or portion of a day	PST Bulletin PST 118
Multijurisdictional Vehicle Tax (MJVT)	Applies to inter-jurisdictional commercial carriers. It uses a formula: MJV tax = taxable value* x tax rate** x travel ratio x travel months	PSTBulletin 135
Innovative Clean Energy Fund (ICE)	0.4% on energy products excluding electricity	PST Bulletin 203
Propane purchasers	2.7 cents per litre	MFT Bulletin 014

*MJVT taxable value of a vehicle is as follows:

• If the vehicle is purchased for fair market value, taxable value is the purchase price of the vehicle.
• If the vehicle is acquired for less than fair market value, taxable value is the fair market value of the vehicle on the date the vehicle is purchased or received as a gift.
• If the vehicle is leased, the greater of the purchase price of the vehicle, as described in the lease, and the fair market value of the vehicle on the date the vehicle first becomes accessible by the lessee.The taxable value includes any capital expenditures made to the vehicle within 30 days after the vehicle’s acquisition date (for example, the addition of a crane).

** You need to read Bulletin PST 135 for the MJVT tax rate as it varies.

Calculating and Adding PST 

I. Purchasing Goods In BC

Adding PST to the price of an item or service is straightforward — just calculate 7% of the purchase price.

For instance, if an item costs $200, the PST would be $14 ($200 x .07), thereby making the total cost $214. Keep in mind that GST may apply and would need to be calculated in addition to PST if necessary.

II. Bringing Goods Into BC

Bulletin PST 310 explains that if you are bringing goods into BC PST is paid on the following formula. If the seller does not collect the PST due, you must self-assess (pay directly to us) the PST. 

PST due = (PST rate x depreciated purchase price) – BC tax previously paid

where the depreciated purchase price of taxable goods is the greater of the depreciated value* or 50% of the purchase price.

* The depreciated value is determined on a straight-line basis as follows. See the bulletin for prescribed depreciation rates.

Depreciated value = Purchase price - [purchase price x depreciation rate]

Example - laptop brought into BC by a Business

I am presenting the Bulletin PST 310's example of a laptop brought into BC by a Business (found on page 7 of the bulletin). The bulletin also has an example of furniture sent into BC by a BC Resident.

A business purchased a laptop in Ontario for $2,000 on February 12, 2018. To pay for the laptop, the business paid $1,500 in cash and also traded in a computer for a $500 trade-in credit against the purchase. The business paid Ontario HST on the entire $2,000. The business initially used the laptop in Ontario, but later decided to send the laptop into BC for use in BC. The entry date for the laptop was February 16, 2019.

PST applies as follows:

• PST due = (PST rate x depreciated purchase price) – BC tax previously paid

The depreciated purchase price is the greater of the depreciated value and 50% of the purchase price. The depreciated value is calculated as follows:

• Depreciated value = Purchase price – [purchase price x depreciation rate]

The purchase price is $2,000 because the purchase price is the total amount paid to purchase goods before a deduction for a trade-in.

• Depreciated value = $2,000 – [$2,000 x depreciation rate]

The depreciation rate is calculated as follows:

1. February 12, 2018 to February 11, 2019 is one whole year
2. February 12, 2019 to February 16, 2019 is 5 days
3. The number of 30-day periods is 5 ÷ 30 = 0.1667 rounded down to 0
4. The depreciation rate is (1 x 20%) = 20%

• Depreciated value = $2,000 – [$2,000 x 20%] = $1,600

The depreciated purchase price is the greater of $1,600 and 50% of the purchase price ($1,000). Therefore, the depreciated purchase price is $1,600.

• PST due = (7% x $1600) – 0

Note: The business does not receive a reduction for the Ontario HST they paid on the goods because Ontario HST is not a “BC tax previously paid.”

• PST due = $112

If the business has a PST number, they must self-assess the PST due on their next return. If they do not have a PST number, the PST is due by March 31, 2019.

Online Reporting and Remitting PST 

Businesses must report and remit PST through eTaxBC, an online service. It is a free service portal.

eTaxBC allows businesses and individuals to manage their provincial taxes and levies online, including sales taxes, municipal and regional district taxes, and various natural resource taxes. Functions include registering for a new account, filing tax returns, making payments, checking account balances, and updating account information, all in a secure online environment. 

Your bookkeeper or accountant can also use eTaxBC to file your returns on your behalf.

Depending on your reported revenue, you may remit annually, semi-annually, or monthly. See the table below.

British Columbia Tax Compliance Deadlines

This deadline table will be updated regularly. Last update April 8, 2024.

Tax Collected	Reporting Period
More than $12,000	Monthly only
$6,000 - $12,000	Monthly or Quarterly
$3,000 - $6,000	Quarterly or Semi-annual
$3,000 or less	Quarterly, semi-annual or annual

Tax Type	Reporting Period	Form to be Filed	Tax Filing Deadline	Payment Deadline
Monthly PST Return	Prior month	eTaxBC	Last day of month following	Last day of month following
Quarterly PST Return	Oct-Dec Jan-Mar Apr-Jun Jul-Sep	eTaxBC	Jan 31 Apr 30 Jul 31 Oct 31	Jan 31 Apr 30 Jul 31 Oct 31
Semi-Annual PST Return	Jan-Jun Jul-Dec	eTaxBC	Last day of month following	Last day of month following
Annual PST Return	Prior year	eTaxBC	January 31 following	January 31 following
BACKWORK REMINDER April 1, 2013		BC HST Transitions Back To PST
BACKWORK REMINDER April 1, 2012		BC HST-PST Transitional Rules Relating To New Home Sales Began
BACKWORK REMINDER May 1, 2010		BC (& Ontario) PST-HST Transitional Rules Began
WorkSafeBC
WCB Annual Report	Prior year i.e. Jan-Dec	Employer Payroll and Contract Labour Report 1810	Early Mar following i.e Mar 2025 for 2024	Early Mar following
WCB Quarterly Filer	Oct-Dec Jan-Mar Apr-Jun Jul-Sep	Employer's Remittance Form 1820	Jan 20 Apr 20 Jul 20 Oct 20	Jan 20 Apr 20 Jul 20 Oct 20

You should receive your base rate and classification unit letter from WCB for 2024 in January 2025.  If you haven't received it by the end of January, contact WCB or go online.

Impact of PST on Imported or Exported Goods 

Generally, goods imported into BC are subject to PST, though certain exceptions may apply. Goods exported from BC to another country, however, are generally exempt from PST.

Businesses located outside British Columbia (BC) that sell taxable goods or provide software or telecommunication services may need to register for, collect, and remit Provincial Sales Tax (PST) if these are provided in BC. The regulations for these are defined under the British Columbia's Provincial Sales Tax Act (PSTA).

Non-Resident Businesses Bulletins PST 001 & 309 & 321:

Businesses must pay PST when they bring or send goods into B.C., or receive delivery of goods in B.C., for use in the course of their business, whether or not their business is carried on in B.C.

If a business is selling goods, software, or telecommunication services to BC customers from outside the province, it is liable to register, collect, and remit PST. This is applicable regardless of whether the product is delivered physically or digitally.

If your business is located outside B.C. and regularly do all the conditions in any of the following scenarios, you must register to collect and remit PST.

1. Sell or lease taxable goods, software, or services to customers in BC;
2. Accept purchase orders from customers in BC;
3. Deliver taxable goods (physically shipped) or software (electronically delivered) to a location in BC directly or through a third party;
4. Solicit sales in BC for goods or software;
5. Meet the minimum threshold of a small seller*.

*Small sellers category provides an exception. If the total amount derived from all retail sales by the seller in the previous 12 months in BC is less than $10,000, and is expected to remain less than $10,000 in the next 12 months, then the business is not required to register, collect, or remit PST. It's nevertheless permitted to do so voluntarily. I could not find if the restriction for the business to be home based to qualify as small seller applied to businesses outside BC.

There are three main categories of businesses that are obligated under the BC PSTA:

1. Sell Taxable Goods to Customers in BC Bulletin PST 001:

There is a lengthy list of examples in Bulletin PST 321 of businesses that may have to register to collect and remit PST in BC. It includes real property contractors (Bulletin PST 501) and software companies (Bulletin PST 105).

Exceptions:

• Wholesalers and small sellers are not required to register.
• Sell only non-taxable or exempt software, goods, or services such as children's clothing, dry-cleaning services, or transportation services are not required to register.
• Independent sales contractors only selling exclusive products are not required to register.

2. Online Marketplace Facilitators and Sellers Bulletin PST 142:

Operators that facilitate retail sales through their platform must register, collect, and remit PST on taxable sales made by sellers to customers in BC. It may include software and telecommunication services that are used in BC.

3.  Telecommunication Services Bulletin PST 107:

BC PST categorizes telecommunication services as not only traditional telephone services, but also any service allowing voice, image, or data transmission. This can include the right to download, view or access such as internet access, text messaging, digital streaming or downloading of online yoga classes, audio books, ring tone, music, and audio programs such as podcasts or radio, TV programs or movies, online gaming services, cloud-based software, and more.

These services can be taxable regardless of their method of delivery, the type of signal used, or the type of contract (prepaid, postpaid, pay as you go, etc.).

Certain exemptions may apply, including some specific types of broadcasts, internet access, and sales to certain groups such as Canada's federal government.

Online Sales and PST 

Online businesses that sell or deliver goods and services in BC are required to register, collect, and remit PST. This includes businesses not located in BC, provided they have a significant nexus (connection) with the province.

AUDIT READY

See the previous section for information on online marketplace facilitators and telecommunication service providers. BC's definition is broader than most other sales tax jurisdictions in Canada. It is knowledge you must be aware of if your electronics goods or services allow the right to download, view or access content online.

Wrap-up

By fully grasping these elements, small business owners can navigate British Columbia's PST landscape with confidence, ensuring accurate calculation, collection, and remission of these  funds held in trust. It also helps businesses avoid unnecessary penalties while taking advantage of eligible exemptions and refunds.

References: BC's publication Small Business Guide to PST and numerous PST Bulletins are quoted and referenced throughout the article.

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