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Sales Tax / Property Purchase Tax (BC)
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What is PST?
British Columbia (BC) Provincial
Sales Tax, also called Social Services Tax, is charged on most
products and many services, at a rate of 7.5%, increased from 7%
effective February 20, 2002.
If you are going to make any
sales on which PST should be charged, you must register with the
Consumer Taxation Branch to collect PST.
You must pay PST on purchases and
leases of equipment and supplies used in running your business. If
the items were brought in from out of province, and PST was not
collected by the vendor, you must remit it.
You should be careful to ensure
you are not buying a tax liability when you purchase an existing
business.
For more PST information related
to starting a new business, see the Consumer Taxation Branch web page
"Starting
a New Business".
- clothing and footwear for
children 14 and under
- abrasives used in a business
- books and magazines
- insulation
- smoke alarms
- double glazed windows, and related installation costs
- doors containing double glazed windows
- bicycles
- many medications, health-related equipment and supplies, and
personal items purchased by persons with disabilities and handicaps.
See more information at
http://www.rev.gov.bc.ca/ctb/Disability.htm
- equipment rental where the rental includes an operator of the
equipment
- garage doors which contain
double glazed window units
- electricity being supplied to a residence via a temporary power
pole
- rental of equipment when an operator is part of the rental
- testing - for example, motor vehicle testing required on a
regular basis for commercial trucks and trailers
If you are charged PST in error,
and are not able to get a refund from the supplier, you can request a
refund from the BC Provincial Government Consumer Taxation
Department. You will have to provide copies of the invoices on which
the PST was charged. You can download Form # 413 from the provincial
government web site, at
http://www.rev.gov.bc.ca/ctb/forms/0413.pdf, or you can view other
available forms on their site at
http://www.rev.gov.bc.ca/ctb/Forms.htm.
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British Columbia Sales Tax Rates (Historical)
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Tax Act |
Tax Type |
Current Rate |
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Social Service Tax Act |
Sales Tax (PST) |
7.0% on all
goods except alcohol and some passenger vehicles (February 20, 2002
- October
20, 2004 rate was 7.5%)
10% on
alcohol
7.0% - 10% on
passengers vehicles (February 20, 2002 - October
20, 2004 rate was 7.5%)
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Less than
$55,000 - 7.0%
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$55,001 to
less than $56,000 - 8%
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$56,001 to
less than $57,000 - 9%
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$57,000 or
more - 10%
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Hotel Room Tax Act |
Hotel/motel/B&B room tax |
8.0%, plus an additional 1% or 2% municipal and regional
district tax in some communities. Please see
Bulletin
HRT 007, Municipal and Regional District Tax, for a
listing of communities and rates. |
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Motor Fuel Tax Act |
Fuel
tax, including gasoline, diesel, propane, natural gas and various
other fuels |
Various depending on type of fuel. Please see
Bulletin
MFT 005, Tax Rates on Motor Fuels. |
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Tobacco Tax Act |
Tobacco tax, including cigarettes, tobacco sticks, loose
tobacco and cigars |
Various depending on type of tobacco. Please see
Bulletin
TTA 005, Tax Rates on Tobacco
Products. |
If you still have questions, you can contact the
Consumer Taxation
Branch at 604 660-4524 in Vancouver
or 1 877 388-4440 outside Vancouver. |
British Columbia Property Purchase Tax
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Purchase Price/ Fair Market Value |
Fee Schedule |
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$0 - $200,000 |
1% of Purchase Price/Fair Market Value |
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$200,000 - no maximum |
1% on first $200,000 plus 2% on the balance (no maximum) |
Click
here
for a copy of the provincial tax bulletin regarding the
BC property purchase tax.
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| This tax only applies to actual transfers of title. It does
not apply to bare trusts and other
similar holdings which is in
contrast to the province of Ontario which taxes all transfers of
title whether it be legal title or beneficial title. |
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