Are you ready for BC's switch back to PST? | FBC, Canada's Farm & Small Business Tax Specialist

Are you ready for BC's switch back to PST?

Are you ready for BC's switch back to PST?

BC HST PSTIt’s probably not news to you, but the HST in British Columbia, which is a combination of a 5% federal component and a 7% provincial component, will be replaced by the Goods and Services Tax (GST) and a B.C. provincial sales tax (PST) on April 1, 2013, subject to some transitional rules.

All businesses will need to register to collect PST if they sell or lease taxable goods, or provide software or taxable services in the ordinary course of business in B.C.

You may also need to register if you’re located outside the province but make sales in B.C.

There is no need to register for a GST number as your HST number will become your GST number.

The BC government has a number of documents available online for both consumers and businesses that can help you and your customers, including the “What’s taxable, what’s not” guide covering many common goods and services.  

You can find all consumer and business publications online at: www.gov.bc.ca/pst.

The transitional rules describe how and when the PST applies to transactions that straddle April 1, 2013. 

By Jason Clements

"If all the economists were laid end to end, they’d never reach a conclusion." — George Bernard Shaw