Definitions and interpretation

120.3   In this Part:

"cut-off date", in relation to a project, means the cut-off date specified in Schedule 6 for the project;

"primarily" means more than 50%;

"project" means a project specified in Schedule 6.

[en. B.C. Reg. 196/2018, s. 1.]

Tangible personal property for use in project

120.4   (1) Tangible personal property is exempt from tax imposed under Part 3 of the Act, other than Division 9 of that Part, if obtained

(a) before the cut-off date for a project, and

(b) for use primarily for the purposes of the project during the period that

(i) begins on the date the tangible personal property is obtained for that purpose, and

(ii) ends on the earliest of the following dates, as applicable:

(A) the cut-off date for the project;

(B) the date that is 2 years after the date referred to in subparagraph (i);

(C) the date on which the tangible personal property is sold or otherwise disposed of;

(D) if the tangible personal property was obtained under a lease, the date on which the lessee ceases to lease the tangible personal property.

(2) Tangible personal property is exempt from tax imposed under Division 9 of Part 3 of the Act if obtained and used as set out in subsection (1) (a) and (b) of this section.

[en. B.C. Reg. 196/2018, s. 1.]

Software

120.41   (1) In this section, "qualifying infrastructure", in relation to a project, means qualifying infrastructure specified in Schedule 6 for the project.

(2) Subject to subsection (3), software is exempt from tax imposed under

(a) Part 3 of the Act, other than Division 9 of that Part, or

(b) Part 4 of the Act, other than section 109 of that Part.

(3) The exemption under subsection (2) applies only to software obtained, before the cut-off date for a project, for use

(a) primarily to operate, control or monitor qualifying infrastructure for the project, or

(b) to operate particular machinery or equipment for use primarily to operate, control or monitor qualifying infrastructure for the project.

[en. B.C. Reg. 196/2018, s. 1.]

Services

120.42   A related service provided, before the cut-off date for a project, in relation to tangible personal property that is exempt under section 120.4 of this regulation in relation to the project is exempt from tax imposed under Division 2 of Part 5 of the Act, other than section 120.1 of that Part.

[en. B.C. Reg. 196/2018, s. 1.]

Electricity

120.43   (1) In this section, "qualifying worksite", in relation to a project, means a qualifying worksite specified in Schedule 6 for the project.

(2) Electricity is exempt from tax imposed under Part 3 of the Act if the seller provides, before the cut-off date for a project, the electricity through a meter that services only a qualifying worksite.

[en. B.C. Reg. 196/2018, s. 1.]

Tangible personal property excluded from exemptions under Division 2

120.5   Despite Division 2 of this Part, the following are not exempt under that Division:

(a) vehicles designed to be ordinarily used on a public highway, other than bulldozers, backhoes and excavators that are exempt under section 120.4 [tangible personal property for use in project];

(b) railway rolling stock, locomotive engines and non-turbine aircraft;

(c) software, other than software that is exempt under section 120.41 [software];

(d) electricity, other than electricity that is exempt under section 120.43 [electricity].

[en. B.C. Reg. 196/2018, s. 1.]

Definition

120.6   In this Division, "tangible personal property exemption provisions" means the provisions in Division 2 of this Part, other than section 120.42 [services].

[en. B.C. Reg. 196/2018, s. 1.]

Provisions prescribed for purposes of sections 89 (2), 90 (4), 99 (6) and 112 (2) of Act

120.61   (1) The tangible personal property exemption provisions are prescribed for the purposes of the following provisions of the Act:

(a) section 89 (2) [tax on acquisition of eligible tangible personal property];

(b) section 90 (4) [tax on eligible tangible personal property brought into British Columbia];

(c) section 99 (6) [tax on acquisition of exclusive product by independent sales contractor].

(2) Section 120.41 [software] of this regulation is prescribed for the purposes of section 112 (2) [tax on purchase of software by small seller] of the Act.

[en. B.C. Reg. 196/2018, s. 1.]

Provisions prescribed for purposes of section 145 of Act

120.62   (1) The tangible personal property exemption provisions are prescribed for the purposes of section 145 (1) (a) [provisions providing exemptions in relation to tangible personal property] of the Act.

(2) Section 120.41 [software] of this regulation is prescribed for the purposes of section 145 (1) (b) [provisions providing exemptions in relation to software] of the Act.

(3) Section 120.42 [services] of this regulation is prescribed for the purposes of section 145 (2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.

[en. B.C. Reg. 196/2018, s. 1.]

Declarations required under section 145 of Act

120.63   (1) For the purposes of section 145 (1.1) (a) [evidence required to claim certain exemptions in relation to tangible personal property or software] of the Act, in relation to a person who alleges that

(a) tangible personal property is exempt under any of the tangible personal property exemption provisions, or

(b) Part 4 software is exempt under section 120.41 [software] of this regulation,

the collector is required to obtain a declaration in a form specified by the director.

(2) For the purposes of section 145 (2) (a) [evidence required to claim certain exemptions in relation to taxable services] of the Act, in relation to a person who alleges that a related service is exempt under section 120.42 [services] of this regulation, the collector is required to obtain a declaration in a form specified by the director.

[en. B.C. Reg. 196/2018, s. 1; am. B.C. Reg. 137/2024, App. 3, s. 1.]

Declaration required under section 30 (7) (a) of Act

120.64   For the purposes of section 30 (7) (a) [evidence required to claim exemption in relation to tax payable in respect of vehicle] of the Act, in relation to a person who alleges that a vehicle is exempt under section 120.4 [tangible personal property for use in project] of this Part, the Insurance Corporation of British Columbia is required to obtain a declaration in a form acceptable to the director.

[en. B.C. Reg. 196/2018, s. 1.]