GST ( Goods and Services Tax - Federal)
Under the Goods and Services Tax (GST) most goods and services sold or provided in Canada are taxed at the rate of 5%. Non residents of Canada may (if they qualify) apply for a GST rebate of goods and services taxes that were paid while visiting British Columbia. To determine whether you qualify for this rebate, Revenue Canada Customs and Excise publishes and distributes a GST Rebate for Visitors pamphlet available for download.
PST ( Social Service Tax - Provincial)
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.
For further information on B.C. sales taxes vist the following website: Ministry of Small Business and Revenue