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Frequently Asked Questions
Questions:
Answers:
If I design and create products for sale, such as brochures, do I pay PST on the cost of components used to create the end products? |
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No. You do not pay PST on the cost of components that are incorporated into the final product. However, you pay PST on most tangible goods and services used in your business that do not become part of the final products. |
I scan my illustrations, then send the digital product to a printer who reproduces them on packaging labels for my clients. My clients use the packaging labels on their products. Do I charge PST on the illustrations? |
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No. You do not charge PST on the illustrations or the labels. As your clients will attach the labels to the products they sell, they can purchase them exempt from PST for resale. You record your client's PST registration number on the invoice to show why you did not charge PST. |
If my graphic design company outsources the printing and I mark up the cost, do I charge PST on the total cost of the printing? |
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Yes. If you are designing and selling the printed graphic design work to your clients, you charge PST based on the total selling price, which will include the mark-up costs for printing. You do not pay PST on your printing charges.
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I sell graphic designs over the Internet. Do I charge PST? |
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No. You do not charge PST when you sell designs over the Internet. |
I co-ordinate graphic design printing, copy writing and mailing. The creative files are done in an electronic format and then uploaded to the British Columbia printer's file. No film is being produced and the printed material is delivered to a mailing house in Quebec. Do I charge my client PST for the creative services for this project? |
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It depends. You do not charge PST for the creative services as long as you deliver the printed materials to Quebec, and the Quebec mailing house does not mail the printed materials to British Columbia residents.
However, if the printed materials are mailed to British Columbia residents, you charge PST on the full cost of your creative services, printing charges and any materials distributed in British Columbia. |
I provide a creative design service for print and web use but I do not sell any tangible personal property. The designs are only provided digitally, either over the Internet or on a disk. Do I charge PST? |
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No. You do not charge PST on electronic or digital designs. You are providing a non-taxable creative design service. If you were to print the designs, then you charge PST on the full cost of the prints, which will include the costs for the creative design service, printing, materials, shipping etc. |
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