Provincial Sales Tax and Harmonized Sales Tax in British Columbia

May 14, 2010

Recently there has been information in the media regarding incorrect collection of PST in British Columbia. Below is a list of items that are exempt from PST.

Please keep in mind, that in effective July 1st 2010, the Harmonized Sales Tax will be in affect.

It is also important to note that there is an HST transition period between May 1 and July 1. The HST would apply to goods and services purchased on or after July 1, 2010. In addition, the HST would generally apply to prepayments starting on May 1, 2010, for goods or services that would be provided on or after July 1, 2010.

ITEMS EXEMPT FROM PST IN BRITISH COLUMBIA
• Thermal insulation material that is a bat, a blanket, loose fill or cellular plastic material

• Rigid or semi-rigid insulation attached to buildings also qualifies for exemption.

• Polystyrene forming blocks - ICF

• Chemicals used to make spray polyurethane foam insulation

• Weather stripping and caulking material designed to prevent heat loss from a building.

• Window insulating systems consisting of a transparent or translucent film, including frames or integral parts of the systems.

ENERGY STAR® Qualified Windows, Doors and Skylights

From February 21, 2007 to March 31, 2011, inclusive, pre-manufactured windows, doors (including side panels) and skylights that are listed as being ENERGY STAR®

ENERGY STAR® Furnaces, Boilers, Heat Pumps and Gas-Fired Water Heaters

From February 16, 2005 to March 31, 2011, inclusive, qualifying energy efficient residential furnaces, boilers and heat pumps are eligible for an exemption from PST.

Water Heaters

From February 20, 2008 to March 31, 2011, inclusive, qualifying gas-fired water heaters if they have an energy factor of 0.80 or greater. This includes traditional and instantaneous water heaters.

Alternative Energy Sources
Purchases and leases of prescribed ocean, wind, solar and micro-hydro power generating equipment are exempt from PST.

For more information please contact the British Columbia Ministry of Finance.

Telephone (Lower Mainland): 604-660-4524
Toll free in Canada: 1 877-388-4440
Email: CTBTaxQuestions@gov.bc.ca