Skip Ribbon Commands
Skip to main content

Do I Need to Register for B.C. PST?

18/05/2016


Businesses in B.C. that sell tangible goods, software and certain services are generally required to register for B.C. Provincial Sales Tax (PST).

But what if your business is located outside of B.C.?

For non-residents of B.C., there are separate sets of rules in respect of registration. Bulletin PST 001 breaks them down to the following groups:

  • Non-resident of B.C. in Canada, selling goods to B.C., but no inventory in B.C.
  • Non-resident of B.C. in Canada, selling taxable software or telecommunication services to B.C.
  • Non-resident of B.C. in or outside Canada, selling goods to B.C., with inventory in B.C.
  • Non-resident of B.C. in or outside Canada, leasing goods located in B.C. to a lessee in B.C.
  • Non-resident of B.C. outside Canada

Each category has its own rules; some require the person to meet a number of circumstances before they are required to register, while others require the person to register right off the bat.

In general, if you are a non-resident of B.C. in Canada, you have a higher chance of being required to register than a non-resident of B.C. outside of Canada. If you keep inventory in B.C. or lease goods to lessees in B.C., you would likely be required to register whether you are in or outside of Canada. As a non-resident of B.C. outside Canada, unless you are keeping inventory or leasing goods in B.C., the guidance is largely silent on whether you are required to register.

Being a non-resident of B.C. isn’t a free pass to bypass the registration and requirement to collect tax. If you are uncertain whether your business is required to register for B.C. PST, you may wish to discuss this with your Canadian indirect tax advisor.

To learn more contact Angela Chang, CPA, CA, Indirect Tax Advisor, at 778.374.2121 or [email protected], or your local Indirect Tax Advisor.