Tax memo: Re-implementation of British Columbia Provincial Sales Tax: Transitional rules

Memo No. 2012-39

On October 15, 2012, the British Columbia government released Notice 2012-010, announcing many new transitional rules concerning the province’s re-implementation of a Provincial Sales Tax (PST). This Tax memo provides a high-level overview of some of the key rules.

The purchase of tangible personal property (goods) in British Columbia for personal or business use will be subject to PST, unless a specific exemption applies. The general rule is that PST will apply to consideration in respect of the purchase of goods that becomes due on or after April 1, 2013 and is not paid before April 1, 2013. Specific rules apply to determine when a consideration is “due.”

In certain circumstances, PST may become payable before the consideration for the goods becomes due or is paid. This can occur when ownership or possession of the goods is provided before all of the consideration has been paid. However, PST will not apply if:

  • all or any portion of the consideration has not been paid or become due before the last day of the month immediately following the first month in which:
    • ownership or possession of the goods is transferred to the purchaser; or
    • the purchaser acquires ownership of the goods or makes the goods available to any other person, other than the seller; and
  • that first month is before April 1, 2013.

For leases of taxable goods, the general rule is PST will apply to consideration in respect of the lease payments of the goods that becomes due on or after April 1, 2013, and is not paid before April 1, 2013. PST will apply to leased taxable goods brought or sent into British Columbia on or after April 1, 2013.