Issues surrounding the Provincial Sales Tax (PST) constitute the majority of single-issue calls into the BC office. Because of this, the PST file is one of our legislative team’s main focuses. While there is still much work to be done, here is an update of some of our wins from the past year:
- Scheduled recurrent monthly meetings with the Executive Director Consumer Taxation Audit Branch to discuss member’s concerns and files
- Review of PST documentation and handouts for clarity and simplicity
- The creation of mandatory Small Business Sensitivity Training for all auditors at the PST branch (please see attached PDF file to review the training presentation they receive)
Real Property Contractors
The most common audit-related call that BC Business Resources receives surrounds real property contractors. If you sell goods and offer installation of goods onto “real property” (land or something permanently affixed to the land – that will become permanent as well – blinds, affixed mirrors, carpets, doors, etc), you are a real property contractor. Here’s how it works:
- Wholesale of goods only: Do not charge PST
- Installation of goods onto real property: Do not charge PST
- Retail sale of goods to customer: Charge PST
- Retail sale of goods and installation of goods onto real property: Do not charge PST
Confused yet? Our contacts at the PST Branch say that the simplest way to avoid any issues is to pay PST on all of your purchases, and then to apply for a monthly refund with The Branch. If you have a question in regards to a certain situation, getting a written ruling from the PST department is a good way to get insurance on their advice - CTBTaxQuestions@gov.bc.ca. And of course, if you have any other questions surrounding the wonderful responsibility that is PST collection, administration, and remittance, call Business Resources today, 1.888.234.2232.
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