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B.C. Reg. 97/2013
O.C. 130/2013
Deposited March 1, 2013
effective April 1, 2013
This consolidation is current to June 21, 2022.
Link to consolidated regulation (PDF)
Link to Point in Time

Provincial Sales Tax Act

Provincial Sales Tax Exemption and Refund Regulation

[Last amended October 12, 2021 by B.C. Reg. 262/2021]

Part 7 — Refunds and Credits for
Multijurisdictional Vehicles

Credit if vehicle ceases to be multijurisdictional

135   (1) In this section:

"applicable period", in respect of a vehicle referred to in section 72 (5) or 72.1 (5) of the Act, means the last vehicle licence period during which the vehicle was licensed under a prorating agreement;

"prorate period amount" means the amount calculated under subsection (4) of this section for a vehicle;

"purchase price" has the same meaning as for the purposes of section 72 or 72.1 of the Act, as applicable;

"remaining balance amount" means the amount calculated under subsection (3) of this section for a vehicle.

(2) The amount of the credit under section 72 (5) or 72.1 (5) of the Act for a vehicle,

(a) if the vehicle ceases to be licensed under a licence to which a prorating agreement applies before the end of the vehicle licence period, is the sum of the remaining balance amount and the prorate period amount for the vehicle, and

(b) in any other case, is the prorate period amount for the vehicle.

(3) For the purposes of subsection (2) of this section, the remaining balance amount for a vehicle must be calculated as follows:

remaining balance amount = tax paid ×months remaining
total months
where
tax paid=the tax paid under one or both of sections 69 [tax if multijurisdictional vehicle licensed] and 71 [adjustment of tax under section 69] of the Act in respect of the vehicle for the applicable period;
months remaining=the number of whole months left in the applicable period at the time that the vehicle ceases to be licensed under the licence to which the prorating agreement applies;
total months=the number of whole and partial months in the applicable period.

(4) For the purposes of subsection (2) of this section, the prorate period amount for a vehicle must be calculated as follows:

prorate period amount =purchase price × total months
× average travel ratio × 7%
where
purchase price=the purchase price of the vehicle;
total months=the number of whole months, up to a maximum of 60, in which the vehicle was licensed under the licence to which the prorating agreement applies, divided by 60;
average travel ratio=the average travel ratio during the total period the vehicle was licensed under the licence to which the prorating agreement applies.

Refund or credit of tax if fleet licensing changed

136   (1) In this section:

"applicable period", in respect of a vehicle referred to in section 74 (1) of the Act, means the last vehicle licence period under the previous licence referred to in section 74 (1) (b) or (1.2) (b) of the Act;

"different fleet", in respect of a vehicle referred to in section 74 (1) of the Act, means the different fleet referred to in section 74 (1) or (1.1) (c) of the Act.

(2) The amount of the credit under section 74 (2) of the Act or the amount of the refund under section 74 (3) of the Act for a vehicle must be calculated in accordance with the following formula:

amount of credit or refund = tax paid ×months remaining
total months
where
tax paid=the tax paid under one or both of sections 69 [tax if multijurisdictional vehicle licensed] and 71 [adjustment of tax under section 69] of the Act in respect of the vehicle for the applicable period;
months remaining=the number of whole months remaining in the applicable period at the time the vehicle is licensed as part of the different fleet;
total months=the number of whole and partial months in the applicable period.

Refund if vehicle ceases to be multijurisdictional

137   (1) In this section, "applicable period" means the last vehicle licence period during which a vehicle referred to in section 74.1 (1) of the Act was licensed under a prorating agreement.

(2) The amount of the refund under section 74.1 (1) of the Act for a vehicle must be calculated as follows:

amount of refund = tax paid ×months remaining
total months
where
tax paid=the tax paid under one or both of sections 69 [tax if multijurisdictional vehicle licensed] and 71 [adjustment of tax under section 69] of the Act in respect of the vehicle for the applicable period;
months remaining=the number of whole months left in the applicable period at the time that the vehicle ceases to be licensed under the licence to which the prorating agreement applies;
total months=the number of whole and partial months in the applicable period.

Refund at end of vehicle licence period

137.1   The amount of the refund under section 74.2 (1) of the Act in respect of a vehicle for a vehicle licence period is the amount calculated in accordance with the following formula:

amount of refund = tax paid ×months remaining
total months
where
tax paid=the tax paid under one or both of sections 69 [tax if multijurisdictional vehicle licensed] and 71 [adjustment of tax under section 69] of the Act in respect of the vehicle for the vehicle licence period;
months remaining=the number of whole months left in the vehicle licence period at the time that the vehicle ceased to be licensed under the licence to which the prorating agreement applies;
total months=the number of whole and partial months in the vehicle licence period.

[en. B.C. Reg. 117/2014, Sch. 4, s. 9.]

Credit if tax previously paid

138   (1) The amount of the credit under section 75 (1) or (1.1) or 75.1 (1) or (2) of the Act for a vehicle must be calculated in accordance with the following formula:

amount of credit = taxable value × credit factor × travel ratio × travel months
where
taxable value=the vehicle taxable value;
credit factor=the tax credit factor, for the calendar year in respect of which the credit is claimed,
(a)established under subsection (2) of this section, if the vehicle is not a bus, or
(b)established under subsection (3) of this section, if the vehicle is a bus;
travel ratio=the travel ratio for the vehicle;
travel months=the number of whole and partial months in the vehicle licence period at the time that the vehicle is licensed, divided by 12.

(2) The tax credit factor referred to in subsection (1) of this section for a calendar year in respect of which a credit is claimed for a vehicle other than a bus is the tax credit factor shown opposite the applicable calendar year as follows:

Calendar YearTax Credit Factor
acquisition year2.944%
1st calendar year after the acquisition year2.296%
2nd calendar year after the acquisition year1.827%
3rd calendar year after the acquisition year1.488%
4th calendar year after the acquisition year1.247%

(3) The tax credit factor referred to in subsection (1) of this section for a calendar year in respect of which a credit is claimed for a bus is the tax credit factor shown opposite the applicable calendar year as follows:

Calendar YearTax Credit Factor
acquisition year2.498%
1st calendar year after the acquisition year1.836%
2nd calendar year after the acquisition year1.349%
3rd calendar year after the acquisition year0.990%
4th calendar year after the acquisition year0.730%

Refunds from Insurance Corporation of British Columbia

138.1   (1) If a person has paid to the Insurance Corporation of British Columbia an amount as tax under section 69 of the Act that, as a result of a clerical error, is in excess of the amount of tax payable under that section, the Insurance Corporation of British Columbia may refund to the person the amount of the excess.

(2) If the director is satisfied that a person has paid to the Insurance Corporation of British Columbia an amount as tax under section 69 of the Act that is in excess of the amount of tax payable under that section, the Insurance Corporation of British Columbia, on receiving notice from the director, may refund to the person the amount of the excess.

(3) The Insurance Corporation of British Columbia may refund to a person the amount of tax paid under section 69 of the Act by the person in respect of a vehicle licence period if the person

(a) licensed a vehicle in British Columbia under a licence to which a prorating agreement applies for the vehicle licence period,

(b) paid tax under section 69 of the Act to the Insurance Corporation of British Columbia in respect of the licence referred to in paragraph (a), and

(c) cancels the licence referred to in paragraph (a) before the licence comes into effect.

[en. B.C. Reg. 117/2014, Sch. 6.]

Special refunds by Insurance Corporation of British Columbia

138.2   (1) Subject to subsection (3), the Insurance Corporation of British Columbia may refund to a person an amount of tax paid under section 69 of the Act in respect of a vehicle licence period if the vehicle ceases to be licensed, under a licence to which a prorating agreement applies, on a date that is

(a) within the vehicle licence period, and

(b) after March 10, 2020 but before October 1, 2020.

(2) If the Insurance Corporation of British Columbia does not exercise its discretion under subsection (1) to pay a refund to a person, the director may pay the refund if the director is satisfied that

(a) the person paid to the Insurance Corporation of British Columbia tax under section 69 of the Act in respect of a vehicle licence period, and

(b) the requirement in respect of the vehicle, set out in subsection (1), is met.

(3) A person may not be paid a refund under subsection (1) if the director pays a refund under subsection (2).

(4) The amount of the refund under subsection (1) or (2) is the amount calculated in accordance with the formula set out in section 137.1 as if the refund were payable under section 74.2 of the Act.

(5) A person to whom a refund is paid under subsection (1) or (2) must repay to the government an amount equal to the refund if

(a) the Insurance Corporation of British Columbia has provided a credit in respect of the same vehicle for the same vehicle licence period under section 74 (2) or 76 (2) of the Act, or

(b) the director has paid a refund, in respect of the same vehicle for the same vehicle licence period, under section 74 (3), 74.1, 74.2 or 76 (3) of the Act.

[en. B.C. Reg. 98/2020.]

Refund or credit for trade-in vehicles

139   The amount of the credit under section 76 (2) of the Act or the amount of the refund under section 76 (3) of the Act for a trade-in vehicle must be calculated in accordance with the following formula:

amount of credit or refund =tax paid
12
x (months remaining)
where
tax paid=the tax paid under Division 7 of Part 3 of the Act on the trade-in vehicle at the beginning of the vehicle licence period in which the vehicle is traded in against the purchase of the new vehicle;
months remaining=the number of whole months remaining in the trade-in vehicle's vehicle licence period at the time the vehicle is traded in against the purchase of the new vehicle.

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