Under the new legislation, if the supplier/contractor pays pst when purchasing the tangible personal property, then tax will not be applicable to the supply of the property (s 80 of the provincial sales tax act). The provincial sales tax (pst) is a retail sales tax that applies to the purchase or lease of goods and certain services in british columbia Currently, the pst rate is set at 7%. Pst is a retail sales tax that applies when taxable goods, software or services are acquired in b.c For use in b.c., unless a specific exemption applies.
On april 1, 2013, the province of b.c Eliminated the harmonized sales tax (hst) and returned to the federal goods and service tax (gst) plus provincial sales tax (pst) system. On august 26, 2011, elections bc announced that british columbians had voted in favour of eliminating the hst and returning to the provincial sales tax (pst) plus federal goods and services tax (gst) system. Unlike ontario or quebec, british columbia doesn’t use a harmonized sales tax (hst) system Instead, bc maintains its own provincial sales tax, making it necessary to track and report gst and pst separately.
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