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Return of PST in BC

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If you are running a business, the British Columbia government will reimplement the PST and GST (5%), replacing the current HST (12%). The PST (Provincial Sales Tax), like the previous PST before HST was implemented, is a retail sales tax applied to taxable goods or services purchased/leased for business or personal use, unless exempted.

The general PST rate of 7% will which apply to:
• Most of the purchase or lease of new or used goods, including home products, adult clothing & footwear, vehicle parts, and electronics.
• Goods brought, sent, or delivered  into BC for use in BC
• The purchase of most services to good, such as car maintenance, electronics repair, etc.)
• The use of legal services (other than legal aid)
• The purchase of telecommunication services, including pay-per-view, mobile phone, internet, email service (other than basic cable television service).


The complete list of PST rates are:

Item

PST Rate

Goods and services

7%

Alcohol

10%

Accommodation

8%

Passenger vehicles:

Less than $55,000

7%

 

$55,000 to less than $56,000

8%

 

$56,000 to less than $57,000

9%

 

$57,000 or more

10%

Other motor vehicles and trailers

7%

Vehicles, boats and aircraft acquired from private individuals or non-GST registrants (purchased or received as a gift)

12%

Manufactured mobile homes (on 50% of the purchase or lease price or fair market value)

7%

Manufactured modular homes (on 55% of the purchase or lease price or fair market value)

7%

Portable buildings (on 45% of the purchase or lease price or fair market value)

7%

 

 All previously permanent PST exemptions will be reimplemented with new PST, which include:

• Books, newspapers, & magazines
• Basic groceries, e.g. dairy, meat, vegetables, canned goods
• Prepared food, including restaurant meals
• Real estate (residential & commercial)
• Children clothing & footwear
• Personal services, e.g. tailoring, dry cleaning, haircuts, wedding planning
• Prescription drugs
• Transportation fares, e.g. bus, ferry, train, airline
• Admissions & memberships
• Most financial services and insurance
• Professional services, such as accounting & engineering


For a complete list of taxable and non-taxable goods and services, click What’s Taxable under the PST and What’s Not?

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