Provincial Sales Tax, BC

Tobacco taxes, carbon taxes, and fuel taxes are all examples of mandatory sales taxes that must be paid. Regardless of whether you buy or lease your items, as a resident of British Columbia, you are responsible for paying your taxes. British Columbia's government is in charge of revenue collection and taxation throughout the province. A Harmonized Sales Tax (HST) or Goods and Services Tax (GST) is required on all taxable purchases, including goods and services. This tax must be paid on every purchase. GST up to 5% is now being collected and paid by the federal government department in the provinces of British Columbia and Ontario.

To begin with, on April 1, 2021, a new set of rules for calculating taxes on foreign-supplied digital services came into effect in the Canadian province of British Colombia. As a result of COVID-19, the expansion of tax registration requirements for overseas digital service providers has been put on pause. There was an initial launch date of July 1, 2020, but this was later changed. This deferral also had an impact on the Canadian sellers of goods.

tax rate

Registrations Will Now Be Subject To The Following Updated Requirements:

  • The company receives orders from clients in British Columbia who place their orders via phone, internet, or email. Software purchased for use on an electronic device should be sourced only from British Columbia.
  • Customers in British Columbia can buy or rent their goods or services from them.

They should meet the following minimum requirements in connection with the sale or provision of software and services:

  1. Only if you are located in Canada, but outside BC:

In the preceding year, they made over $10,000 in gross revenue through leasing and selling goods and selling and providing software and services to British Columbian consumers.

  1. If they are located outside Canada: 

It is only eligible if the company's gross income from all sales and providing of software and services to customers in British Columbia in the past 12 months exceeds $10,000.

The following items and services are exempt from BC PST:

  • services provided by experts (other than legal services).                           
  • Food that can be eaten by humans such as basic groceries.
  • The cost of transportation (e.g. bus, ferry, train airline)
  • Books, periodicals, and newspapers
  • Clothing for kids
  • Bicycles

Keep a record of the reason for the exemption of provincial sales tax, BC, as well as any other pertinent information, such as the purchaser's PST number, for your own records. You should also preserve a copy of the exemption certificate issued by the buyer. If you fail to comply, you may be held liable for any unpaid PST in BC as well as any accumulated fines and interest.