Refunds
Refunds may be claimed when:
- an overpayment of tax has been made voluntarily by a taxpayer, through misinterpretation or lack of knowledge, on a purchase that would not have been subject to tax
- a taxpayer makes an error in calculating the amount of tax due, resulting in an overpayment
- there is a statutory requirement to initially pay tax, and in order to recover the PST the taxpayer must complete some action or supply some information and apply for a refund
For businesses who remit PST, you can make an internal tax account adjustment when you file your next tax return. You may make an internal tax account adjustment when:
- you have incorrectly charged tax and then refunded it to the person who paid the tax
- where you have charged too much tax due to a mathematical error and then refunded it to the purchaser
- when you have purchased goods for resale and have been charged and paid tax incorrectly when you should not have
Adjustments can only be made for overpayments during the current or previous tax period. For example, if you file monthly, you can use internal tax account adjustments for the two calendar months prior to the end of the reporting period covered by the return. If your situation is not one of the above limited situations or you have made an overpayment prior to the two calendar months prior to the end of the reporting period covered by the return, you must apply for a refund. Please see Bulletin SST 032, Completing the Tax Return Form for more information.
If you have made an overpayment prior to these reporting periods, you must apply for a refund.
For purchasers who have overpaid, were charged PST in error, or are subsequently entitled to a refund of PST due to changed circumstances or a statutory requirement to apply for a refund, there are specialized refund forms for the following:
Unless one of the specialized forms as set out above is appropriate, please use the form Application for Refund of Social Service Tax or Hotel Room Tax (FIN 413). In your refund application, please include the following information:
- date of purchase
- name of seller
- description of item
- amount of PST paid
- invoice total
Please see the template schedule for a suggested format (Excel file, opens in new window). Time Frames
Applications for refund must be made within four years from the date the tax was paid.
All refund applications must include supporting documentation, including invoice copies, verifying payment and the date the tax was paid.
If it is later determined that the basis for the refund was inaccurate, you may be liable to repay the refund plus interest.
It is important that you sign and date the "Claimant Declaration" section at the bottom of the application form. Only you, as the person who paid the tax, can sign the application form. If you are a corporation, the declaration must be signed by a director or authorized employee of the corporation.
If your refund claim has been prepared by a third party and you want the branch to deal with the third party for any questions about the application, you must submit a signed authorization letter on your letterhead. If the refund cheque is to be mailed to the address of the third party, your letter must specifically include this instruction.
Completed refund applications should be sent to:
Consumer Taxation Branch
Refund Section
PO BOX 9628 STN PROV GOVT
VICTORIA BC V8W 9N6
Please note, we do not provide a refund for a claim of less than $10.
For more information about refunds of overpayments, please see Bulletin GEN 008, Refunds of Overpayments of Tax.
Refunds for Sales Written off as "Bad Debts" |
Under the Social Service Tax Act, tax must be collected at the time of sale. If your business has extended credit to a customer and the account, or portion of the account, later becomes uncollectible and is written off as a "bad debt", you may be entitled to a refund of the tax that was paid.
You can claim a refund of the tax by taking an adjustment on your next tax return. Please note, you must keep supporting documentation verifying the adjustment for inspection and audit purposes.
Refunds must be claimed within four years of the bad debt being written off your books.
If any or all of the amount written off as a "bad debt" is later paid, you are responsible for remitting the tax due on the amount you received.
For more information, please see Bulletin GEN 001, Refund of Tax Remitted on Sales Written Off as "Bad Debts".
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