Details For BC Business Owners Registering For PST

bc hst repealThis is the third article in the BC HST repeal article series featuring Mike Boven, commodity tax expert from BDO Canada.

If you own a business in British Columbia and aren’t yet informed on what to do once the BC HST repeal kicks in, you need to start thinking about the transition right now. For those businesses that are involved in the sale of things that are subject to PST, they are going to have to register as a separate vendor for provincial sales tax purposes.

The sort of things that are subject to our provincial sales tax is typically tangible personal property, and that’s a technical definition. Pretty much everything you can see and touch, except real estate (land and buildings), is what you would call tangible personal property but other things are specifically included to be subject to the tax as well. Typically services directly related to tangible personal property such as repairing a car, repairing a computer and that sort of thing – those types of transactions are also taxable.

Registering As A Collector of PST

Registering to be a vender or collector of PST is not going to be enormously difficult. It can now be done online and your federal HST number is what businesses have been using to report and remit their HST. That number will carry on as their GST number and it will also become their provincial sales tax registration number.

From an administrative standpoint, it will be a tiny bit easier to register than it used to be but essentially every business that was registered under the old BC sales tax before HST is going to have to re-register themselves after the BC HST repeal. There are tens of thousands of new businesses that have sprung up in the interim that are also going to have to register now.

Do You Need To Register?

An easy way to quickly determine if you need to register is by visiting the Consumer Taxation Branch website and check their bulletins describing what sort of goods and services are subject to provincial sales tax.

The Small Supplier Exception (Important)

Anyone who made under $30,000 and over $10,000 under the HST rules and hasn’t been registered for any government taxation might get caught through the BC HST repeal process if they aren’t careful. Any businesses that have more than $10,000 in sales will need to register for PST, certainly a major difference.

BC HST Repeal Article Series For Small Business Owners

  1. BC HST Repeal: How We Got Here & Where We Are Headed
  2. What Every Retailer Needs To Know About The BC HST Repeal
  3. BC HST Repeal: Details On Registering For PST
  4. BC Businesses Should Buy Equipment Before April 1st
  5. What Every Small Business Owner Needs To Know About The BC HST Repeal
  6. What The Construction Industry Needs To Know About The BC HST Repeal

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