The PST tax will be re-introduced in British Columbia, Canada on April 1, 2013. Events, such as football and hockey games, should not have PST applied after this date. However, as I found out, if you pay your invoice before April 1, 2013 you will be charged PST and you cannot get it back! So, all the BC Lions Season’s Ticket holders who renew before April will get dinged PST! This potentially is millions of dollars of overtaxation for the provincial government!
I emailed the PST department about this and how to get a refund. I received a reply. Here is what they said: “As a general matter, whether HST or Goods and Services Tax/PST applies during the transitional period depends on when the invoice is paid or becomes payable, whichever comes first. ”
They also referred me to 2 documents:
1) Provincial PST transition rules: Notice 2012-010, General Transitional Rules for the Re-Implementation of
the Provincial Sales Tax.
2) Federal HST transition rules: HST Transition rules.
There was no mention of a refund! So, it appears that I am out of luck and out the 7% extra I paid!
So, if you are a business in British Columbia that purchases future event (e.g. BC Lions Season’s Tickets) try to pay for them after April 1, 2013. It will save you 7% which could be significant.
President, Luna Systems Corporation
Here is the complete response that I received:
Thank you for your enquiry.
British Columbia’s provincial sales tax (PST) will be re-implemented effective April 1, 2013, at a general tax rate of seven percent. The draft proposed consolidation of the Provincial Sales Tax Act (PSTA) is available at http://www.sbr.gov.bc.ca/documents_library/legislation/unofficialPSTstatute.pdf. The draft proposed consolidation of the PSTA provides a preview of what the re-implemented PST might generally look like as of April 1, 2013 if the proposed amendments are introduced into the Legislative Assembly and approved without further amendment. The Ministry of Finance continues to work on developing the regulations and consequential amendments that complete the legislative package required to re-implement the PST substantially as it was before harmonization, including the permanent exemptions.
Please note that we cannot provide a ruling on how the PSTA or its regulations will apply until such time that the legislation and regulations are finalized.
Please also note that there are PST and HST transitional provisions that may affect your purchase. The general transitional rules for the PST describe how and when the PST applies to transactions that straddle April 1, 2013, whereas the transitional rules for the HST describe how and when the HST applies to transactions that straddle April 1, 2013.
The federal and provincial rules must be read together. The general transitional rules for PST generally mirror the federal transitional rules. As a general matter, whether HST or Goods and Services Tax/PST applies during the transitional period depends on when the invoice is paid or becomes payable, whichever comes first.
General transitional rules which describe how and when PST will apply to transactions that straddle April 1, 2013 are outlined in Notice 2012-010, General Transitional Rules for the Re-Implementation of the Provincial Sales Tax. The information in this notice is provided for convenience and guidance, and is not intended to replace legislation. The legislation to implement these rules is still being finalized and requires the approval of the Legislative Assembly of British Columbia.
The federal Department of Finance is responsible for the HST transitional rules which govern how the HST will apply during the transition period. More information on the proposed HST transitional rules can be found at http://www.fin.gc.ca/n12/12-017-eng.asp. The rules will be administered by the Canada Revenue Agency (CRA), which can be reached at 1-800-959-5525.
To receive updates about the re-implementation of the PST, please visit the following web page and click the button to “Subscribe To Receive Updates” which is located near the top right of the page: http://www.sbr.gov.bc.ca/msbr/whats_new/consumer_taxes/whatsnew.htm.
More information on British Columbia’s return to the PST can be found in a new series of PST bulletins and notices, available on the Ministry’s website at http://www2.gov.bc.ca/gov/topic.page?id=0CE539AD86F44033A1C531B9B597EA86
This correspondence describes how the Ministry interprets the relevant tax provisions for information purposes only. This response may be impacted by variations in circumstance, subsequent changes to legislation or subsequent court decisions. The Ministry is not responsible for updating this response if there are any subsequent changes to the law. This response is provided as an aid to understanding the legislation and is not intended to replace the legislation.
Tax Inquiries Ministry of Finance www.gov.bc.ca/consumertaxes