Table of Contents - Provincial Sales Tax Act

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This Act is current to June 1, 2022
See the Tables of Legislative Changes for this Act’s legislative history, including any changes not in force.

Provincial Sales Tax Act

[SBC 2012] CHAPTER 35

Assented to May 31, 2012

Contents
Part 1 — Interpretation
	Division 1 — Definitions and Interpretation
	1	Definitions
	2	Proof of residence in British Columbia
	3	Deemed expenses of a person
	4	Transactions deemed to be transfer of possession
	5	Carrying on business in British Columbia
	6	Deemed use of tangible personal property or software in the course of business
	7	How tax is to be calculated
	8	Liability of other persons
	8.1	Registration number of principal
	Division 2 — Purchase Price and Lease Price
	9	Purchase price of tangible personal property
	10	Original purchase price of tangible personal property
	10.1	Original purchase price of certain vehicles
	11	Purchase price of tangible personal property related to affixed machinery and improvements to real property
	12	Lease price of tangible personal property
	13	Original lease price of tangible personal property
	14	Purchase price of software
	15	Original purchase price of software
	16	Purchase price of promotional material in promotional sale
	17	Purchase price of taxable service
	18	Original purchase price of related service
	19	Original purchase price of accommodation
	20	Original purchase price of legal services
	21	Original purchase price of telecommunication service
	22	Reduced purchase price or lease price
	23	Purchase price or lease price if coupon accepted
	24	Purchase price if trade-in allowed on purchase of tangible personal property
	25	Depreciated purchase price of tangible personal property
	26	Purchase price if bundled purchase
	26.1	Food or other tangible personal property sold with beverages
	26.2	Lease price if bundled lease
	27	Valuation by director
Part 2 — When Tax Is Payable
	28	When tax is payable in respect of a purchase or lease
	29	When tax is payable if tax not collected when consideration is paid or becomes due
	30	When tax is payable in respect of vehicles
	30.1	When tax is payable in respect of promotional material
	31	When tax is payable in respect of gifts of vehicles, boats or aircraft
	32	Tax payment agreements in relation to tangible personal property and software
	33	When consideration becomes due
Part 3 — Taxes in Relation to Tangible Personal Property
	Division 1 — Rates of Tax
	34	Rates of tax in relation to purchase price
	35	Rates of tax in relation to lease price
	36	Rates of tax in relation to gifts
	Division 2 — Purchases of Tangible Personal Property
	37	Tax on purchase
	Division 3 — Leases of Tangible Personal Property
	38	Application of this Division
	39	Tax on leases
	40	Tax on motor vehicle leased outside British Columbia and registered for use in British Columbia
	41	Tax if leased property used in British Columbia during rental period
	42	Tax if balance of lease price becomes due on breach of lease
	43	Additional tax on lease of passenger vehicle
	44	Exemption if lease under sale and lease-back arrangement
	45	Refund for leased property used outside British Columbia
	46	Refund on motor vehicle leased outside British Columbia
	Division 4 — Tangible Personal Property Brought into British Columbia
	47	Definition
	48	Application of this Division
	49	Tax if tangible personal property brought into British Columbia for use
	50	Tax on registration of vehicle brought into British Columbia
	51	Tax if tangible personal property brought into British Columbia for temporary use
	51.1	Tax if tangible personal property no longer for temporary use
	52	Tax if tangible personal property brought into British Columbia by non-residents
	53	Exemption if less than minimum threshold use in British Columbia
	Division 5 — Property Brought into British Columbia from Outside Canada
	54	Application of this Division
	55	Tax if property brought into British Columbia from outside Canada
	56	Detention of tangible personal property
	57	Tax payable to collection agent even though exemption claimed
	58	Refund if property brought into British Columbia for temporary use
	Division 6 — Conveyances Used Interjurisdictionally
	59	Definitions
	60	Tax if conveyance purchased in British Columbia for interjurisdictional use
	61	Tax if sale and lease-back of conveyance
	61.1	Tax if sale and lease-back of conveyance for which tax paid under former Act
	62	Tax if leased conveyance used in British Columbia
	63	Tax if conveyance brought into and used in British Columbia
	64	Tax if change in use of conveyance acquired for resale
	65	Estimate of hours or distance conveyance will travel
	66	Adjustment of tax
	67	Refund for conveyances used interjurisdictionally
	Division 7 — Multijurisdictional Vehicles
	68	Definitions
	69	Tax if multijurisdictional vehicle licensed
	70	When tax under section 69 must be paid
	71	Adjustment of tax under section 69
	72	Tax if vehicle ceases to be multijurisdictional
	72.1	Tax if transferred vehicle ceases to be multijurisdictional
	73	Liability of other persons
	74	Refund or credit of tax if fleet licensing changed
	74.1	Refund if vehicle ceases to be multijurisdictional
	74.2	Refund at end of vehicle licence period
	75	Credit if tax previously paid
	75.1	Transition — credit if tax previously paid
	75.2	Refund from Insurance Corporation of British Columbia authorized under regulations
	76	Refund or credit for trade-in vehicles
	77	Refund for replacement vehicles
	78	Refund for short term rental vehicles
	Division 8 — Affixed Machinery and Improvements to Real Property
	79	Contractor exempt from tax under section 37 or 49
	80	Tax on tangible personal property used to improve real property if contractor exempt
	80.1	Contractor exempt from tax under section 37 or 49 if other person would be exempt
	80.2	Refund of tax paid by contractor under Division 5
	80.3	Tax on tangible personal property used to improve real property if contractor obtained refund
	80.4	Tax if change in use of tangible personal property used to improve real property
	80.5	Transitional tax on tangible personal property used by contractor to improve real property
	80.6	Transitional tax on tangible personal property used to improve real property
	80.7-80.8	Repealed
	Division 9 — Change in Use
	81	Tax if change in use of property acquired for resale
	82	Tax if property used for new purpose
	82.01	Tax if leased property used for new purpose
	82.1	Tax on parts or material if property containing parts or material used for new purpose
	82.2	Tax if conditions for exemption not maintained for specified period
	82.3	Tax if change in use of vehicle, boat or aircraft exempt from tax under Consumption Tax Rebate and Transition Act
	83	Tax if change in use of property acquired for lease
	84	Tax if change in use of resulting tangible personal property
	84.1	Tax if dealer or manufacturer changes use of motor vehicle
	85	Tax if change in use of prototype
	86	Tax if change in use of property for which refund received under taxation agreement
	87	Tax if recording exhibited
	88	Tax if leased tangible personal property becomes part of real property
	Division 10 — Tangible Personal Property Acquired by Small Seller
	89	Tax on acquisition of eligible tangible personal property
	90	Tax on eligible tangible personal property brought into British Columbia
	91	Exemption in relation to eligible tangible personal property purchased from small seller
	Division 11 — Energy Products
	92	Tax on purchase of energy product
	93	Tax if energy product brought into British Columbia for use
	94	Tax under this Division is additional tax
	95	Exemptions in relation to energy products
	96	Refund of excess if maximum tax paid
	97	Reporting requirements in relation to energy products
	Division 12 — Other Taxes in Relation to Tangible Personal Property
	98	Liquor sold under liquor permit
	99	Tax on acquisition of exclusive product by independent sales contractor
	100	Tax on gift of vehicle, boat or aircraft given in British Columbia
	101	Tax on reusable containers
	102	Tax on leased property occasionally supplied with operator
	103	Tax on subsequent purchase or lease after refund or credit
Part 4 — Taxes in Relation to Software
	104	Application of this Part
	105	Tax on software
	106	Tax on use of software on device in British Columbia
	107	Tax on business use of software on devices in and outside British Columbia
	108	Adjustment of tax under section 107
	109	Tax if use of software changes
	109.1	Tax if conditions of exemption for software not maintained for specified period
	110	Tax if change in use of resulting software, telecommunication service or tangible personal property
	111	Tax if change in use of software for which refund received under taxation agreement
	112	Tax on purchase of software by small seller
	113	Exemptions in relation to software
	114	Exemption in relation to software purchased from small seller
Part 5 — Taxes in Relation to Services
	Division 1 — Services Related to Purchase
	115	Definition
	116	Tax if contract for property conversion related to purchase
	117	Tax if contract for modification of purchased property
	117.1	Tax if resulting property used for new purpose
	118	Exempt property
	118.1	Refund if contract for property conversion not related to purchase
	Division 2 — Related Services in Relation to Tangible Personal Property
	119	Tax on purchase of related service provided in British Columbia
	120	Tax if related service provided outside British Columbia
	120.1	Tax if change in use of related service
	121	Exemptions from tax under this Division
	Division 3 — Accommodation
	122	Tax on accommodation
	123	Tax on accommodation in designated accommodation area
	123.01	Transition — application of section 123 if change in designation status or tax rate
	123.1	Obligation to pay and collect tax on accommodation purchased for resale
	123.2	Tax if change in use of accommodation purchased for resale
	123.3	Tax if accommodation used for new purpose
	124	Refund in relation to new designated accommodation area
	124.01	Refund in relation to increase in tax rate
	124.1	Payment into consolidated revenue fund
	125	Payment to designated recipient
	Division 4 — Legal Services
	126	Tax if legal services provided in British Columbia
	127	Tax if legal services provided to British Columbia resident
	128	Exemption in relation to legal aid
	129	Deemed references if person providing legal services is partner or employee
	Division 5 — Telecommunication Services
	130	Tax on telecommunication service
	130.1	Tax on telecommunication service purchased substantially for resale
	130.2	Additional tax on telecommunication service purchased substantially for resale
	130.3	Tax on telecommunication service if no longer substantially for resale
	131	Tax on dedicated telecommunication service
	132	Calculation if telecommunication only partly through dedicated system
	132.1	Tax if telecommunication service used for new purpose
	133	Tax if motion picture exhibited
	134	Exemption if telecommunication service purchased for resale
	134.1	Exemption for activities outside British Columbia in relation to telecommunication
	134.2	Exemption in relation to copying content of telecommunication service or broadcasting
	Division 6 — Exemptions in Relation to Taxable Service Purchased by or from Small Seller
	135	Exemptions not applicable to small seller
	136	Exemption in relation to taxable service purchased from small seller
Part 6 — Exemptions
	137	Taxable component sold with non-taxable component for single price
	138	Exemption for minimal sale of tangible personal property
	139	Exemptions in relation to food
	140	Exemption in relation to fuel
	140.1	Exemption in relation to electricity
	141	Exemptions in relation to industry and commerce
	141.1	Exemption for affixed machinery
	142	Exemptions for tangible personal property intended for lease
	143	Exemption in relation to recording of motion picture or audio production
	144	Limit on exemptions
	145	Evidence required to claim certain exemptions
Part 7 — Refunds
	Division 1 — Refunds from Collectors
	146	Refund if no obligation to pay
	147	Refund if person fails to provide evidence at time of sale or lease
	148	Prohibition — refund already received
	149	Refund if motor vehicle returned to collector
	150	Refund or credit of purchase price
	151	Refund or credit of lease price
	Division 2 — Refunds from Director
	152	Refund if no obligation to pay or collect
	153	Refund if person fails to provide evidence at time of sale or lease
	153.1	Refund if person fails to provide evidence at time of vehicle registration
	153.2	Refund if promotional distributor fails to provide evidence at time of sale
	154	Motor vehicle returned to manufacturer
	155	Refund in accordance with Nisg̱a'a Nation Taxation Agreement
	156	Refund in accordance with treaty first nation tax treatment agreement
	157	Refund by director if collector does not provide refund
	158	Property shipped out of British Columbia
	158.1	Property used to improve real property situated outside British Columbia
	159	Refund or deduction for bad debts
	160	Refund to collector
	161	Refund to small seller
	162	Refunds authorized or required under regulations
	163	Prohibition — refund or credit already received
	Division 3 — General
	164	Definition
	165	Claim for refund
	166	Refund limits
	167	Appropriation for refunds
Part 8 — Registration and Tax Collection
	Division 1 — Registration
	168	Registration
	169	Vendors and lessors must be registered
	170	Contractor must be registered
	171	Direct seller must be registered
	172	Person located in Canada but outside British Columbia must be registered
	172.1	Person located outside British Columbia must be registered
	172.2	British Columbia minimum revenue threshold
	173	Suspension or cancellation of registration
	174	When registrant must notify director
	175	Cancellation of registration if small seller
	176	Registrant who is independent sales contractor
	177	Prohibitions relating to use of registration number
	Division 2 — Collection and Remittance of Tax
	178	Collector is agent
	179	Collection and remittance of tax by collector
	179.1	Designation of collector if agent and principal
	179.2	Collection of tax if sale by auction
	180	Collection of tax by independent sales contractor
	181	Collection of tax under section 127
	182	Collection of tax on liquor sold under liquor permit
	182.1	Transition — remittance of tax on liquor sold under special occasion licence
	182.2	Collection of tax on liquor sold by auction
	183	Duties of small seller
	184	Tax collected deemed to be held in trust for government
	185	Allowance for collection of tax
	186	Collector's returns
	187	Certificate required for bulk transaction
	188	Prohibited advertising or other representations
	189	Liability satisfied if tax collected
	190	Payment first applied against tax payable
	191	Agreement with federal government
	Division 3 — Taxpayer Returns
	192	When a person must file a taxpayer return
	193	Taxpayer return
Part 9 — Administration and Enforcement
	Division 1 — Inspections and Audits
	194	Inspection and audit powers
	195	Requirement to provide records
	196	Demand for information
	196.1	Evidence — copies of records
	196.2	Fee for attending at location outside British Columbia
	Division 2 — Assessments
	197	Notice of assessment
	198	Assessment of tax not remitted by collector
	199	Assessment if amount not paid or remitted or if excess deduction or refund
	199.1	Assessment if joint and several liability for amount assessed or imposed against designated collector
	200	Assessment period under sections 198 and 199
	201	Anti-avoidance rule
	Division 3 — Penalties and Interest
	202	Failure to register
	203	Failure to levy tax
	204	Incorrect information
	205	Failure to levy, remit or pay tax and excess deduction or refund
	206	Interest until notice of assessment given
	206.1	Interest after notice of assessment given
	Division 4 — Board Member's Liability
	207	Board member's liability
	208	Refunds when joint and several liability
	209	Deemed board member
	210	Assessment against board member
Part 10 — Appeals
	211	Appeal to minister
	212	Appeal to court
	213	Irregularities
	214	Tax collection not affected by pending appeal
	215	If decision set aside or amount reduced or increased on appeal
Part 11 — Recovery of Amounts Owing
	216	Collection bond
	217	Court proceeding to recover amount owing
	218	Summary proceedings
	219	Alternative remedies
	220	Attachment of funds
	221	Lien
	222	Responsibility of person having control of property
	223	Notice of enforcement proceedings
	224	Limitation period
	225	Application for injunction
Part 12 — General
	226	Designation of director
	227	Delegation
	228	Confidentiality
	229	How and when documents are given by director
	229.01	Proof of compliance
	229.02	Proof of receipt
	229.03	How and when documents are given by minister
	229.04	When documents are given to minister
	229.1	Estimates of revenue
Part 13 — Offences and Penalties
	230	Offences and penalties
	231	Onus of proof
	232	Evidence
	233	Offence by corporation
	234	Time limit on prosecution
	235	Section 5 of Offence Act
Part 14 — Regulations
	236	General regulation-making authority
	237	Regulations in relation to tax payment agreements
	238	Regulations in relation to tangible personal property
	239	Regulations in relation to software
	240	Regulations in relation to accommodation
	241	Regulations in relation to exemptions
	242	Regulations in relation to refunds
	243	Regulations in relation to refunds and credits in relation to exclusive products
	244	Regulations in relation to claims of solicitor-client privilege
	245	Regulations specifying tax for coin-operated purchases
	246	Other regulations
Part 15 — Amendments to Income Tax Act
	247-254	Income Tax Act Amendments
	255	Commencement