Affordable Accounting and Bookkeeping
Extinguishment of HST in B.C.
Action Plan to guide the transition from the HST to the PST plus GST system in British Columbia
The Province will reinstate the combined 12 per cent PST and GST tax system following the referendum decision by British Columbians to extinguish the HST in B.C.
The PST will be reinstated at seven per cent with all permanent PST exemptions. The Province may make some common sense administrative improvements to streamline the PST.
The transition period is expected to take a minimum of 18 months, consistent with the report of the independent panel on the HST. During this period, the provincial portion of the HST will remain in place at seven per cent.
During the transition period, the Province will provide quarterly updates on the progress of returning to the PST.
On April 1, 2013, B.C. will return to a provincial sales tax (PST) system.
The PST is a retail sales tax that is payable when a taxable good or service is acquired for personal use or business use, unless a specific exemption applies.
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