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Frequently Asked Questions
Questions:
Answers:
I am a construction contractor. Do I pay PST on freight charges on goods I bring into British Columbia? |
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Yes. You pay PST on the purchase price of new goods that you bring into British Columbia. The purchase price includes charges for transportation, customs, excise and any other costs that you pay before you use the goods in British Columbia, except the goods and services tax (GST). For information on how PST applies to used goods and to goods for temporary use, please see Bulletin SST 072, Real Property Contractors.
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Can I bring fuel into British Columbia in a tidy tank without paying fuel tax on the fuel? |
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No. You must pay fuel tax on fuel that you bring into British Columbia for your own use in a tidy tank or similar container. You may be either a commercial or non-commercial user. For any fuel type, use the motor fuel Miscellaneous Payment of Tax form (FIN 135) available by mail or fax through us, or through Service BC Centres.
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How does PST apply to an Alberta company's leased vehicles being used in British Columbia ? |
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PST on a leased vehicle brought temporarily into British Columbia is based on the amount of time the vehicle is used in the province. PST is due for each lease period, beginning on the date the vehicle enters British Columbia. For examples on how to pay PST on leased vehicles, please see our brochure Out-of-Province Owners and Operators of Commercial Vehicles. |
Our line clearing division clears lines in the bush to make the lines accessible for seismic crews and their equipment. Does this equipment qualify for the machinery and equipment exemption?
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No. The line clearing division's equipment and machinery is not eligible for the exemption because construction machinery and equipment is specifically excluded. |
If I am an Alberta resident who travels to British Columbia, when do I become liable to pay PST on my equipment? |
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You must self-assess and pay one-third of the PST due for every 12-month period that the equipment is in the province for more than five days for commercial purposes, up to a maximum of three payments on the same equipment. The five-day period may be made up of one unbroken period or a number of different entries. For more information, please see Bulletin SST 098, Equipment Brought into the Province for Temporary Use (1/3 Formula). |
Are gas distribution systems consisting of underground mainlines and distribution pipes considered an improvement to real property? If so, who pays PST on the materials and equipment used in installing the distribution system? What about services to the system - are they taxable? |
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Yes. Gas distribution systems are an improvement to real property. For contracts that you enter into before October 1, 2008, the way the contract is structured determines whether the contractor or the customer pays PST on the materials and equipment that become improvements to real property. For contracts that you enter into on, or after, October 1, 2008, generally, the contractor is required to pay PST. However, under certain circumstances, the customer pays PST. PST does not apply to any services provided to the system. If you are involved in real property contracts, it is important that you read Bulletin SST 126, Oil and Gas Industry – Service Providers and Contractors and Bulletin SST 072, Real Property Contractors, for detailed information. |
Are gas meters installed on gas distribution systems an improvement to real property? |
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It depends. If the meters are installed in such a way that the system could not function if they were removed, they would be an improvement to real property. If the meters can be removed without interrupting the gas flow, the meter is not an integral part of the system and is not an improvement to real property. |
Do all-terrain vehicles (ATVs) and snowmobiles used by a geophysical surveying company qualify for the production machinery and equipment exemption? |
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No. ATVs are not integral to the geophysical surveying process and do not fit within the exemptions allowed. They are used to transport equipment, supplies and personnel. |
Does PST apply if vehicles have an international licence and, if so, is the calculation different? |
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Yes. If your vehicle is used interjurisdictionally for commercially transporting goods or passengers and it is licensed under a pro-rating agreement, you will pay multi-jurisdictional vehicle (MJV) tax upon licensing with your home jurisdiction. However, the calculation is different. Please see Bulletin SST 073, Multi-Jurisdictional Vehicles for details on the formula. |
I am a camp operator/contractor. Do I have to pay PST on portable buildings I bring into British Columbia? |
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Yes. If you purchase the portable building from an out-of-province dealer who is not registered as a vendor in British Columbia, or who has not paid PST on the portable building, then you must pay tax on the full landed cost of the building. This includes all transportation, freight or delivery costs. If you lease a portable building from an out-of-province lessor, the lease is taxable. |
Last Revised: September 2008
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