2012/2013 PST Re-implementation Timeline.
New Housing Information
Quarterly Updates -(Updated May 2012)
More Information
PST Re-implementation Timeline
The government remains on track with its plan to re-establish the PST in BC.
The government plans to re-implement the provincial sales tax (PST) on April 1, 2013, well within the 18-24 month transition period recommended by the independent panel report of May 2010.
The return to a PST plus federal goods and services tax (GST) system in British Columbia is complex and requires careful planning, coordination and implementation throughout the various stages to help ensure an orderly, responsible transition.
Transitional Rules and Provincial Legislation/Regulations
The government introduced the new PST legislation on May 14, 2012. Transitional rules for new housing were released in February 2012. More detailed provincial regulations and transitional rules will follow.
The governments of Canada and B.C. reached an agreement in January 2012 regarding the return of $1.6 billion BC received to support the transition to the HST. Under this arrangement, BC will make equal instalments over five years beginning March 2012.
Compared to making this repayment all at once, the B.C. government will save significant borrowing costs – money it can use instead to help protect core services.
Provincial Systems Development and Administration
The government, in co-operation with businesses and other partners, is continuing to re-build an administrative structure that supports the return to the PST in an orderly and responsible way.
Discussions are continuing with the federal government in relation to rebuilding provincial resources with staff previously transferred to the Canada Revenue Agency. The government is also working to re-establish facilities and other supports necessary for administration of the PST. Funding will be temporarily provided through the Contingencies vote until there is more certainty about the resources required to complete the transition.
The Insurance Corporation of British Columbia, as a collector of PST, will be making changes to its systems and administrative processes to support the return of the PST.
Provincial Business Registration and Outreach
The government will register approximately 100,000 businesses as tax collectors and provide information and training on the tax application, collection, compliance and reporting rules related to the PST. Communication and business outreach programs now being developed include:
- web-based training videos;
- educational seminars, conducted across the province and over the Internet; and
- a new web-site interface allowing online business registrations.
The government is also implementing new registration, compliance and reporting software to help streamline administration (and reduce costs) for both government and businesses.
Business Transition
Businesses will need to change their own electronic and manual systems and processes to assess, collect, report and remit the PST and other related taxes to the provincial government. The provincial outreach programs will assist business in understanding their responsibilities in administering the PST.
Progress Reports
The government has committed to providing quarterly updates on its progress in returning to the PST.
New Housing Rules
Information on the transitional rules for new housing, the first time home buyer's grant and other issues around the return to PST and housing can be found here.
Quarterly Update
May 14, 2012: Quarterly PST Transition Update
February 21, 2012: The BC Budget information around the PST is considered the current Quarterly update.
November 28, 2011: Second Quarterly PST Transition Update
Action Plan to Re-implement PST
An action plan has been established to ensure an effective and orderly transition to the PST. Key phases in the transition process are described here.
Federal Transitional Rules and Systems:
- A letter from the provincial finance minister to the federal finance minister is conveying the referendum results and advising the federal government that B.C. will re-implement the PST.
- The Province will work with the federal government to develop HST transition rules and to make any necessary changes to systems and processes.
- The provincial government will begin discussions with the federal government about exiting the Comprehensive Integrated Tax Coordination Agreement (CITCA) including the return of the funding received for adopting the HST.
Provincial Legislation and Transitional Rules:
- The provincial government will develop legislation and regulations necessary to re-implement the PST in B.C. and may make some administrative changes to streamline and improve the PST.
- Provincial PST transition rules to mirror federal HST transition rules will be developed.
- The provincial government will develop other legislation and administrative programs necessary to support the full reimplementation of the PST (e.g. hotel room tax, etc).
Provincial Systems Development:
- The Province will develop and establish appropriate reporting, data gathering, billing, remittance/collection, audit, assessment and appeal processes, and supporting computer systems to properly administer the PST and other related taxes (e.g. hotel room tax, etc.) in B.C.
Provincial Administration:
- The Province will re-establish its capacity to administer the tax in the areas of registration and close of business, field and desk audit, appeals, rulings, provincial tax information phone lines, billings and remittances, collections and refunds. This will include staffing, facilities and equipment, and staff training to administer the PST and related taxes. This also includes developing appropriate administrative reporting forms and other information and communications material required to support the transition.
Provincial Business Registration and Outreach:
- The provincial government will register approximately 100,000 businesses as tax collectors before the PST is re-implemented and provide information and training on the tax application, collection, compliance and reporting rules related to the PST. By the time the PST is re-implemented, there will be an estimated 30,000 new businesses in B.C. with no PST experience. These businesses will need to be registered and provided with detailed information and training to enable them to comply with the tax law.
Business Transition:
- Businesses will need to change their own electronic and manual systems and processes to assess, collect, report and remit the PST and other related taxes to the provincial government.
Other Key Stakeholders:
- The provincial government will consult with key administration stakeholders once provincial transition rules are completed. The Province relies on partner agencies to help ensure efficient tax collection, reporting and compliance. These agencies will need to make a number of systems and process changes, as well as receive information and training to help complete the PST transition.
Related Links
Elections BC Results
Statement from Minister Kevin Falcon
Minister's Slide Presentation