BC Sales Tax

BC Sales Tax

YOUR RELIABLE BRITISH COLUMBIA SALES TAX

Paying your sales tax is mandatory, either it’s a provincial sales tax, carbon tax, motor fuel tax or if it’s tobacco tax. If you are a citizen of BC, you are held accountable for paying your taxes, whether you are purchasing or getting your goods on lease. The government of British Colombia holds responsibility for collecting and charging taxes wherever it is applicable. Goods and Services Tax (GST) or if it is a Harmonized Sales tax (HST) on their taxable supplements, that is, goods and services, and pay GST and HST on their every acquired purchase, which is a requirement by legislation. Presently, it is the federal government department that is responsible for collecting and paying GST up to the rate of 5% in the provinces of British Columbia and Ontario.

On April 1, 2021, the Canadian province of British Colombia (BC) sales tax is the largest tax jurisdiction, where the latest and improved set of rules of taxing foreign-supplied digital services went exclusively live. Previously the government of BC withheld their plans. Due to British Columbia’s COVID-19 active plans, the expansion program of tax inscription requirements to foreign suppliers of digital services was put on hold. The primal introductory date was July 1, 2020. The Canadian sellers of goods were also influenced by this postponement.

HOW BRITISH COLUMBIA PROVISIONAL SALE TAX (PST) WORKS

The BC provisional sale tax (PST) is a retail sale tax that is applicable whenever taxable items or goods are brought or purchased into BC to utilize in BC, until or unless there are legal exemptions made on the specific supplies. If you think your business requires registration, then you must charge and assemble the PST at the very specific time when the taxes are payable before there are any exemptions made. Report and pay the PST that you whole sole gather and the PST that you may owe on goods that you utilize in your business. The purchased or the lease price on the goods and services is up to the rate of 7% PST with mere exceptions.  

NEW REQUIREMENTS FOR REGISTRATIONS:

Except for the province, vendors are held accountable to register for PST if they fulfil all the following requirements:

  • They receive orders from customers located in British Colombia that is by means of telephone, internet, or email. Software purchase that is to be used on an electronic device should exclusively be from BC.
  • They trade or provide specific services or software to the customers situated in BC.
  • In relation to the sales or provisions of the software and services, they should meet the minimum following threshold:
  1. Only if are situated in Canada but also outside BC:

In the previous 12 months, their gross revenue from all the leases and sales of merchandise and all the sales and provision of software and services to the customers of British Colombia is more than $10,000.

  1. If they are situated outside of Canada

In the previous 12 months, if their gross revenue from all the sales and provisions of software and services to the customers of British Colombia is more than $10,000.