About Provincial Sales Tax

Provincial Sales Tax (PST) is imposed under the Social Service Tax Act. It is an important source of funding which is used to support British Columbia's roads, schools, hospitals and other community services.

PST applies to sales and leases of goods and some services, such as services
to repair and maintain taxable goods. The tax is payable by the person who purchases or leases the goods, unless the item or purchaser is specifically exempt from tax under the Act.

Under the Social Service Tax Act, PST is applied to:

	retail sales and leases in British Columbia of "tangible personal property" purchased or leased for consumption or use
	"tangible personal property" brought into B.C. for use
	legal services provided in B.C. and legal services provided outside B.C. that relate to matters within B.C.
	charges for parking a motor vehicle within the Greater Vancouver Transportation Service Region other than parking that is specifically exempt
	specified labour services, referred to as taxable services
	telecommunication services provided in British Columbia

PST is currently charged at a rate of 7% on goods and services, except liquor and some passenger vehicles.

Liquor is subject to a tax rate of 10%.

Passenger vehicles, as of February 22, 2006, are taxed at the following rates based on purchase price:

	less than $55,000 is subject to a tax rate of 7%
	from $55,000 to $55,999.99 is subject to a tax rate of 8%
	from $56,000 to $56,999.99 is subject to a tax rate of 9%
	$57,000 or more is subject to a tax rate of 10%

PST does not apply to purchases of less than $0.15. When calculating PST, round the total up for half a cent or more, and down for less than half a cent. See the Tax Schedule to $20 for examples of calculating PST.

In certain circumstances, PST is charged on the greater of the depreciated value or 50% of the original purchase price. Please see Current Depreciation Rates for more information.