Letters were mailed out to more than 160,000 British Columbia businesses in late September advising how to get information on the return to Provincial Sales Tax (PST).
A new PST notice, “General Transitional Rules for the Re-Implementation of the Provincial Sales Tax,” was issued in October.
This notice provides general descriptions of transition rules for the re-implementation of the PST. The transitional rules describe how and when PST applies to transactions that straddle April 1, 2013, and should be read in conjunction with federal transitional rules for the elimination of the Harmonized Sales Tax (HST) in B.C.
However, the rules outlined in the notice are subject to the approval of the legislative assembly.
The Ministry of Finance continues to work on developing the regulations, and transitional and consequential amendments to support the Provincial Sales Tax Act, which received royal assent on May 31, 2012.
Again, all amendments to the legislation require the approval of the legislative assembly, expected in spring 2013.
More than 100,000 businesses will need to register to collect the PST, and about 30,000 of those are new businesses that have only existed under an HST tax system. They will need to learn to administer the PST in tandem with the GST, and adjust their accounting and administrative systems and prepare to collect a second sales tax, as of April 1, 2013.
More information on the return to PST and links to related publications can be found at www.PSTinBC.ca.
