Canada

The B.C. PST Rebate program may be able to provide financial relief

INSIGHT ARTICLE  | 

The British Columbia PST Rebate on select machinery and equipment is a program designed to help corporations recover from the financial impacts of COVID-19. Corporations can apply to receive an amount equal to the PST they paid between Sept. 17, 2020, and Sept. 30, 2021.

Who can apply?

All incorporated businesses are eligible to apply except for Crown Corporation, local government, charities, schools, school boards, universities, hospitals and regional health boards and community health councils.

What qualifies?

Qualifying machinery and equipment that are considered capital assets. Generally, this includes non-consumable goods used in a business. PST paid on leases (both capital or operating leases) of qualifying machinery and equipment also qualifies.

The goods must also be:

  • Obtained substantially (more than 90 percent) for the purpose of gaining or producing income
  • Purchased or leased in B.C., brought into or received in British Columbia (B.C.), brought into B.C. for temporary use, received from a related company, or received as a taxable gift
  • In the case of software taxed under Part 4 of the Provincial Sales Tax Act (PSTA), purchased for use on or with a device ordinarily situated in B.C.

What does not qualify?

The following goods do not qualify for the rebate:

  • Boats and vehicles, other than zero-emission vehicles
  • Consumables, disposable items, real property
  • Goods purchased to be installed as an improvement to real property (other than affixed machinery)
  • Goods purchased for resale by a small seller
  • Exclusive products purchased by independent sales contractors

KEY TAKEAWAY

B.C. is offering a full PST rebate on qualifying capital purchases made between Sept. 17, 2020, and Sept. 30, 2021. If you have already made a capital purchase you can file for the rebate immediately. If you plan on making a capital purchase, ensure that you do it prior to the Sept. 30, 2021, deadline to take advantage of the rebate.

RSM CONTRIBUTORS


Contact our international tax professionals










To select multiple, hold Ctrl + click.