PST Overview
Exemptions: School supplies
School supplies purchased by SFU for use in instructing students
School supplies purchased by students
PST on sales
PST on purchases
Links to PST bulletins
PST is a "use tax", designed to be paid by the end user of a product or service. Unlike the GST, there are no input tax credit or rebate mechanisms to recover any amounts of PST paid. As such, PST is an absolute cost to SFU.
In general terms, GST applies at the rate of 5% to most goods and services. There are a few categories of exemptions, such as basic groceries, prescription drugs, residential rent, educational services, and financial services. PST, at the rate of 7%, generally applies to most goods but only to a few services (i.e. legal services, services to tangible personal property or goods, telecommunications services, and short-term accommodation service). Furthermore, there are a number of goods that are exempt of PST. For example, goods for resale, books, certain school supplies, groceries and restaurant meals, and children's clothing are exempt of PST.
Vendors who sell taxable tangible personal property or services in BC are required to register for PST and collect the tax. Tax is required to be remitted on a regular basis, usually monthly.
The following are the PST rates in BC:
Tax |
Rate |
BC PST on taxable goods and services |
7% |
Innovative Clean Energy fund on energy products |
0.40% |
BC PST on accommodation |
8% + 2% municipal tax in Burnaby |
Liquor tax |
10% |
Passenger vehicle rentals |
$1.50 per day |
Private vehicle sales |
12% |
Luxury passenger vehicles |
8% to 10% |
Exemptions: School supplies
While there are many exemptions from PST, the most important category for SFU is school supplies. This category of exemptions includes rules relating to school supplies purchased by students, as well as rules relating to supplies purchased by school and post-secondary institutions, such as SFU, for educational and instructional purposes.
School supplies purchased by SFU for use in instructing students
When purchasing the goods listed below, SFU should provide a purchase order to the vendor, clearly indicating the portion of the school supplies being purchased that will be used by students or for instructing students. SFU will then be able to purchase these items exempt of PST.
When a department purchases school supplies that will be used for both administrative use and for instructing students, a calculation should be performed to determine the percentage of use in instructing students versus administration. Then, when purchasing school supplies, SFU should clearly state on the purchase order the percentage of the goods purchased relating to instructing students, in order to obtain an exemption of PST on that portion of the purchase
School supplies - SFU purchases |
PST- exempt |
Animals, either living or dead, and parts of animals obtained for use in scientific research or experiments |
Cellulose tape |
Chalk |
Charts, diagrams, and maps |
Lesson notes, précis, examinations, test papers, answer keys, work sheets, and other similar materials, as well as material to manufacture those materials |
Paper clips |
Pens and markers for use on whiteboards |
Photocopier toner obtained by SFU is exempt from PST in respect of the portion of the photocopier toner that can reasonably be attributed to the use of the toner in making copies: |
· For the use of students |
· For use in instructing students |
Rubber bands |
Software obtained for use: |
· On a computer |
· Substantially as a teaching aid for students |
Staples |
Supplies and materials obtained for consumption in arts courses, other than the following: |
· Instrument picks and strings |
· Tools and equipment |
Supplies and materials obtained for consumption in commercial or business courses, other than tools and equipment |
Supplies and materials obtained for consumption in home economics courses, other than the following: |
· Cutlery, dishes, pots, and pans |
· Table linen and towels |
· Bobbins, needles, scissors, sewing machine attachments, and tape measures |
· Tools and equipment |
Supplies and materials, including chemicals, obtained for consumption in science courses, other than the following: |
· Alcohol burner wicks |
· Containers obtained for use as hazardous waste disposal units for phlebotomy sharps |
· Fossils, rocks, minerals, and other geological specimens |
· Gas lighter flints |
· Glassware |
· Lubricants obtained for use to maintain and prevent spotting, staining, and rusting of surgical instruments |
· Needles |
· Non-disposable gloves |
· Osteological preparations |
· Animal feed |
· Supplies for animals |
· Prepared microscope slides |
· Preserved specimens for display |
· Skeletons |
· Surgical instruments |
· Syringes |
· Tools and equipment |
Supplies and materials obtained for consumption in woodworking, metal working, or other industrial arts courses, other than tools and equipment, including drill bits, re-usable electrical and electronic parts, grinding wheels, and saw blades |
Supplies and materials obtained for consumption in vocational training courses, other than tools and equipment |
Visual or audio aids and recordings, other than the following: |
· Educational toys, geometric forms, models, display stands, and felt boards |
· Equipment obtained for use to record, play, project, view, or access audio or video |
Wooden pencil boxes |
The following items are specifically listed as taxable for PST
School supplies - SFU purchases |
PST Taxable |
Chalkboards, chalkboard erasers, and chalkboard cleaning materials |
Whiteboards, whiteboard erasers, and whiteboard cleaning materials |
Software obtained for use: |
· On a computer, and |
· By teachers to assess or evaluate students or to report on students' progress |
Plaques, trophies, awards, certificates, and stickers Administrative, cleaning and maintenance supplies Equipment, such as computers, photocopiers, primnters and replacement parts for equipment Software for adminsitrative purposes |
School supplies purchased by students
The following listing of school supplies are exempt of PST when purchased by a student who is enrolled in an educational program or is being educated at home. Please note that this is an exhaustive list; therefore, any school supplies not included in the list below are taxable for PST purposes. This list is relevant for sales from the bookstore to students. In order to obtain this exemption, the student must make a verbal declaration to the cashier that the purchases are for use in school/university.
School supplies - Student purchases |
||
PST-exempt |
||
Bags specifically designed to carry school books and supplies, other than the following: |
Ink |
|
Lined, unlined, drawing, graph, and music manuscript paper |
||
· Attaché cases |
||
· Backpacks |
Paints and paint brushes, other than theatrical make-up and brushes and carrying cases associated with that make-up |
|
· Bags with wheels |
||
· Briefcases |
||
· Knapsacks |
Pencil and wax crayons |
|
· Sports bags |
Pencils |
|
· Tote bags |
Pens, other than fountain pens and nibs |
|
Drawing instruments, including geometry instruments |
Ring binders |
|
Rulers |
||
Erasers |
School art portfolios |
|
Glue (including glue sticks) |
Work books, including exercise books and scrapbooks |
PST on sales
University departments must charge PST on supplies of taxable goods and services made in BC. The PST collected should be stated separately on the sale invoices/receipts.
If departments sell goods for resale and the purchaser requests an exemption, the purchaser’s PST number should be included on the invoice issued by SFU to support that the sale was made exempt as the goods are being purchased for re-sale.
The following G/L code should be used when collecting PST on sales:
Province where sale is made: |
PST rate |
GL code |
GL code description |
BC |
7% |
11-9999/99999-2100 |
BC PST payable |
PST on purchases
SFU departments should obtain an exemption of PST from suppliers, when acquiring goods for re-sale or for lease to third parties. In order to obtain the exemption, the department must provide SFU’s PST number to the vendor
SFU’s PST number is PST-1000-6004.
SFU Sales on PST
When selling the goods, the SFU department making the sale should charge PST on taxable supplies of goods/services.
Example: Merchandise sold at the bookstore should be purchased without paying PST to the vendor by presenting SFU's PST number. The bookstore should charge PST on applicable merchandise at the point of sale (unless the merchandise qualifies as an exempt school supply).
Note The PST should generally be paid only once by the final consumer. If there are any situations where double taxation is apparent, further analysis should be performed to determine if the PST rules have been applied correctly. Contact Sabina Diaconescu at 778-782-7255 for further advice. |
Links to PST bulletins
BC Government Bulletins and Publications
BC Government Frequently Asked Questions