PST QUESTIONS
1. What is our PST registration number?
- #R 205420
2. Do we pay PST on Newspaper Advertising?
- NO, newspapers themselves are exempt from PST. Pacific Press was
contacted and replied unless UBC takes up 75% of the entire newspaper we
are exempt.
3. Do we pay PST on textbooks? Do students pay PST if purchased directly
from the publisher?
- NO, textbooks are for educational purposes and therefore exempt.
- The same applies to students paying for textbooks.
4. Is there PST on school lab equipment?
- YES, only educational consumable goods are exempt, lab equipment is not.
5. Do we self-assess PST on morgue refrigeration equipment shipped from
England and installed in our new building?
- NO, we do not pay PST when charged as a lump sum for supplying and
installing the equipment (considered real property – land and buildings).
- YES, if the above were charged separately but PST is exempt on installation
only when it is itemized separately.
6. Do we pay PST on prototypes and parts for prototypes?
- NO, prototypes, material and equipment incorporated into a prototype, retain
their exempt status as long as the prototype is used for testing, demonstration
and display purposes.
- YES, if the purchaser uses the prototype for regular production or undertakes
a contract to use the prototype receiving consideration beyond the actual cost
of the demonstration.
7. Do we charge PST for the cost of a reception at a UBC facility that included
food and labour?
- NO, PST is imposed on personal tangible property. Rental, food and labour
are not included as such but alcoholic beverages are PST chargeable.
8. Who is ultimately responsible for collecting and paying PST for transactions
within BC, the vendor or the purchaser?
- The statute of limitations to collect back taxes is 6 years. It is policy for PST
audits to assess the responsibility of collecting PST for the previous 3 years to
the Vendor. For missed taxes from 4 years up to 6 years the audit will assess
the responsibility onto the purchaser.
9. When goods are sold at a discounted price how do we apply the PST?
- When goods are sold at a discounted price, tax applies to the reduced price
paid by the purchaser. Refer to Bulletin SST 079.
10. Do we have a PST Purchase Exemption Certificate?
- UBC’s PST registration # (205420) is also the PST exemption #.
- Exemption certificates are for those who aren't registered and need to confirm
with the supplier that they are exempt.
11. Can a US company or an Ontario company charge UBC PST?
- Many out of province vendors are registered to collect BC tax. If they have
charged 7 % tax, then it is quite likely BC tax.
- When out of province vendors charge PST they do not have to prove they are
registered to collect PST.
- UBC will pay the PST and self-assessing PST is no longer required for the
purchase.
12. Does UBC charge PST on used industrial equipment such as a 40-year old
band saw?
- UBC must collect PST on the sale of used equipment and everything else
unless the item is tax-exempt.
13. Is there PST on school supplies used in graduate or post-graduate research?
- PST is exempt on school supplies used in graduate and post-graduate research
due the fact that graduate students are under the direction of the professor (ie.
Directed Studies) and post-graduate students are under a program
administered by the university.
14. Does UBC self-assess PST on free sample goods from the US that would
normally have PST?
- PST is due on the landed cost of the goods shipped into BC for use. Freight
charges form part of the landed cost. In cases where the goods are supplied
free of charge, UBC is not responsible for tax on the implied commercial
value. However, tax is still due on the freight and or customs charges, as part
of the landed cost.
15. Does PST apply to containers of PST exempt purchases? (ex. Laboratory
animals)
- PST is to be self-assessed on the containers if it is listed SEPARATELY on
the invoice
- Freight is exempt if the item being purchased is exempt.
- Freight is charged PST if it is a condition of the sale (ie. To get the item in the
possession of the buyer)
- Freight is not charged PST if it is a separate transaction or listed separately on
the purchase invoice
-
All freight to bring items into the province and any fees involved are subject
to PST.
All freight to export items out of the province is not subject to PST.
16. Are freight charges exempt from PST?
- Freight is exempt if the item being purchased is exempt – see bulletin 083
- Freight is charged PST if it is a condition of the sale (ie. To get the item in the
possession of the buyer)
- Freight is not charged PST if it is a separate transaction or listed separately on
the purchase invoice
- All freight to bring items into the province and any fees involved are subject
to PST.
- All freight to export items out of the province is not subject to PST.
17. Is PST applicable to a purchase made to fulfill a Government of Canada
contract that is PST exempt?
- GST should be assessed but PST should be applicable depending on WHO
eventually owns the equipment in the end.
- If the Canadian Space Agency owns it then it is deemed they purchased it
therefore no PST but if UBC owns it we must pay PST as applicable.
18. Is PST applicable to maintenance for software or a server?
- As of Feb 2006 PST is not applicable to services (maintenance or upgrades) to
software.
- http://www.rev.gov.bc.ca/ctb/publications/bulletins/sst_040.pdf
19. Is PST applicable legal services?
- PST has been applicable to Legal Services are since 1993.
- The Legal Services bulletin has been suspended due to an appeal which the
court will address in March 2007.