Types of Business for Which Registration is Compulsory

Business on the Territory of BC

A person who regularly sells or rents out taxable goods (alcoholic beverages, vehicles, boats, building materials, general merchandise), services (set up, installation, repair of taxable goods) or software on the territory of BC has to register with the Ministry of Finance.

Realty Contracting Agents

Realty contracting agents are required to register with the ministry if they make contract on improvement of realty (such as home renovations) and make a written agreement with a customer stating that the customer is responsible for paying the PST.

Direct Sellers and Independent Sales Contractors

A person who doesn’t sell taxable goods, services or software from established commercial premises and sells exclusive goods to independent sales contractors can be considered as direct seller.

All direct sellers are required to register with the ministry to charge and collect the PST from the sales of exclusive goods to direct customers and independent sales contractors.

Exclusive goods acquired by an independent sales contractor with the purpose of resale are subject to the PST. In this case the tax should be paid on the retail cost of exclusive goods.

Business Situated outside of BC

A person is required to pay the PST if he owns a business in Canada but outside of BC and does all of the listed below:

1. Sells goods, software or telecommunication services that are subject to the tax to the customers located in BC.

2. Accepts orders for the purchase of taxable goods, software or telecommunication services from customers situated in BC.

3. Makes deliveries of taxable goods to the customers situated in BC.

4. Stimulates people located in BC (for example, by means of advertisement) to purchase goods, software or telecommunication services that are subject to the PST.

Types of Business for Which Registration is Not Compulsory

If a person does not sell good, services or software that are subject to the PST, he doesn’t have to register with the ministry. However, if such seller is not registered with the ministry but charges the PST from his customers, the charged amount has to be remitted to the ministry.

Small sellers do not need to register with the ministry and collect or remit the tax. They have to pay the PST only when they purchase goods with the purpose of resale.

Process of Registration

Application for the registration with the ministry are accepted in person, as well as online and by mail or fax. After the approval of the application, seller receives a letter, which indicates his registration number and tax return filing schedule. Registration can be cancelled if a person does not accomplish the provisions of the PST.