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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 8 — Refunds and Credits for Exclusive Products

Refund or credit if subsequent sale to exempt purchaser

140   If a person

(a) is an independent sales contractor of a direct seller,

(b) has obtained an exclusive product from the direct seller or another independent sales contractor of the direct seller,

(c) has paid tax under section 99 [tax on acquisition of exclusive product by independent sales contractor] of the Act in relation to the exclusive product, and

(d) has sold the exclusive product to a purchaser who was not liable to pay tax on that purchase,

the direct seller may, within 180 days of the date on which the person paid the tax under section 99 of the Act, refund or credit to the person the amount of tax paid.

Refund or credit if subsequent sale for less than suggested retail price

141   If

(a) a person

(i) is an independent sales contractor of a direct seller,

(ii) has obtained an exclusive product from the direct seller or another independent sales contractor of the direct seller,

(iii) has paid tax under section 99 [tax on acquisition of exclusive product by independent sales contractor] of the Act in relation to the exclusive product, and

(iv) has sold the exclusive product to a purchaser, and

(b) the purchase price paid by the purchaser is less than the direct seller's suggested retail price,

the direct seller may, within 180 days of the date on which the person paid the tax under section 99 of the Act, refund or credit to the person an amount equal to the amount, if any, by which the amount of tax paid by the person under section 99 of the Act exceeds the amount of tax levied by the person on the purchase price of the exclusive product under section 180 [collection of tax by independent sales contractor] of the Act.

Refund or credit if exclusive product used by independent sales contractor or provided to another person at no cost

142   (1) This section applies to a person who

(a) is an independent sales contractor of a direct seller,

(b) has obtained an exclusive product from the direct seller or another independent sales contractor of the direct seller,

(c) has paid tax under section 99 [tax on acquisition of exclusive product by independent sales contractor] of the Act in relation to the exclusive product, and

(d) uses or consumes the exclusive product or provides the exclusive product to another person at no cost for use or consumption by that other person.

(2) If this section applies to a person under subsection (1), the direct seller may, within 180 days of the date on which the person paid the tax under section 99 of the Act, refund or credit to the person an amount equal to the amount by which the amount of tax paid by the person under section 99 of the Act exceeds the amount of tax that would have been payable by the person in relation to the exclusive product under, as applicable,

(a) section 37 [tax on purchase] of the Act if section 37 (2) (c.1) of the Act had not applied, or

(b) Division 4 [Tangible Personal Property Brought into British Columbia] of Part 3 of the Act if section 48 (a) [application of Division 4] of that Division had not applied.

Refund or credit if exclusive product returned to direct seller

143   (1) Subject to subsection (2), if

(a) a person

(i) is an independent sales contractor of a direct seller,

(ii) has obtained an exclusive product from the direct seller or another independent sales contractor of the direct seller,

(iii) has paid tax under section 99 [tax on acquisition of exclusive product by independent sales contractor] of the Act in relation to the exclusive product, and

(iv) returns the exclusive product to the direct seller, and

(b) the direct seller refunds or credits to the person all or a portion of the consideration paid by the person for the purchase of the exclusive product,

the direct seller may, at the time the refund or credit of the consideration is paid or allowed, refund or credit to the person the amount of tax paid by the person that is attributable to the amount of the refund or credit of the consideration.

(2) A direct seller may pay or allow a refund or credit to a person under subsection (1) only if the refund or credit is paid or allowed within 180 days of the date on which the person paid the tax under section 99 of the Act.

Refund by director if direct seller does not provide refund or credit

144   (1) In this section, "relevant provision" means any of sections 140 to 143.

(2) If the director is satisfied that

(a) all of the requirements in a relevant provision for the payment of a refund or allowance of a credit to a person have been met, and

(b) the direct seller

(i) did not pay or allow the refund or credit, or

(ii) paid or allowed less than the full amount of the refund or credit,

the director must refund to the person an amount equal to the amount of the refund or credit the direct seller did not pay or allow.

(3) The director may require that a person request a direct seller to pay a refund or allow a credit under a relevant provision in relation to an exclusive product before the person may apply to the director for a refund under this section in respect of that exclusive product.

Refund by director for bad debts

145   (1) In this section, "transaction" means a transaction referred to in subsection (2) (d) of this section.

(2) This section applies to a person in respect of an exclusive product if

(a) the person is an independent sales contractor of a direct seller,

(b) the person has obtained the exclusive product from the direct seller or another independent sales contractor of the direct seller,

(c) the person has paid tax under section 99 [tax on acquisition of exclusive product by independent sales contractor] of the Act in relation to the exclusive product,

(d) the person sells the exclusive product to a purchaser,

(e) the person, in accordance with the Act, has levied the tax required to be levied under section 180 (1) [collection of tax by independent sales contractor] of the Act for the transaction,

(f) the purchaser does not pay to the person the full amount of the consideration in respect of the transaction, and

(g) the person within 4 years of the date on which the tax referred to in paragraph (c) was paid, writes off as unrealizable or uncollectable the amount owing by the purchaser.

(3) If the director is satisfied that this section applies to a person in respect of an exclusive product, the director must refund to the person the portion, determined in accordance with subsection (4) of this section, of the amount of the tax paid by the person under section 99 of the Act in relation to the exclusive product.

(4) For the purposes of subsection (3) of this section, the portion of the amount of the tax paid by a person under section 99 of the Act in relation to an exclusive product must be determined in accordance with the following formula:

portion to be refunded = tax levied ×amount unpaid
total amount payable
where
tax levied=the amount of tax levied by the person under section 180 (1) of the Act in relation to the exclusive product;
amount unpaid=the amount written off as unrealizable or uncollectable in respect of the transaction, but not including interest charges;
total amount payable=the full amount of the consideration in respect of the transaction including all applicable taxes, but not including interest charges.

(5) If a person who obtained a refund under subsection (3) of this section recovers some or all of the amount referred to in subsection (2) (g) of this section, the person must pay to the government an amount, determined in accordance with subsection (6) of this section, on or before the last day of the month following the month in which the recovery was made.

(6) For the purposes of subsection (5) of this section, the amount a person must pay to the government must be determined in accordance with the following formula:

amount to be paid = tax levied ×amount recovered
total amount payable
where
tax levied=the amount of tax levied by the person under section 180 (1) of the Act in relation to the exclusive product;
amount recovered=the amount recovered by the person that gives rise to the obligation under subsection (5) of this section to pay an amount to the government;
total amount payable=the full amount of the consideration in respect of the transaction including all applicable taxes, but not including interest charges.

Refund by director if exclusive product not sold

146   If the director is satisfied that

(a) a person

(i) is an independent sales contractor of a direct seller,

(ii) has obtained an exclusive product from the direct seller or another independent sales contractor of the direct seller,

(iii) has paid tax under section 99 [tax on acquisition of exclusive product by independent sales contractor] of the Act in relation to the exclusive product,

(iv) has not used or consumed and will not use or consume the exclusive product,

(v) has not provided and will not provide the exclusive product to another person at no cost for use or consumption by that other person, and

(vi) has not returned and will not return the exclusive product to the direct seller, and

(b) the exclusive product was not sold and will not be sold to a purchaser,

the director must refund to the person the amount of the tax paid.

No more than one refund or credit

147   (1) An independent sales contractor of a direct seller who has received or been allowed a refund or credit in respect of tax paid under section 99 [tax on acquisition of exclusive product by independent sales contractor] of the Act in relation to an exclusive product is not entitled to and must not request a refund from the director in respect of the same tax paid under section 99 of the Act in relation to the exclusive product.

(2) An independent sales contractor of a direct seller who has received a refund from the director in respect of tax paid under section 99 of the Act in relation to an exclusive product is not entitled to and must not request a refund or credit from the direct seller in respect of the same tax paid under section 99 of the Act in relation to the exclusive product.

Contents | Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 5.1 | Part 6 | Part 7 | Part 8 | Part 9 | Schedule 1 | Schedule 2 | Schedule 3 | Schedule 4 | Schedule 5 | Schedule 6