A person that registered with the ministry to collect the PST is considered as a collector. If a person qualifies to be registered but he is not, he is still considered as a collector.

All collectors are obliged to charge the PST from their customers on sale of the goods, services or software that are subject to the tax.

Rules of Charging and Collecting the PST

The PST has to be charged at the time when tax becomes payable. Mostly the PST become payable when the purchase or renting payment is due or paid.

If taxable goods, services and software are provided under a written contract of lease, the payment becomes due at the same day when the rental fee should be paid according to that contract.

Municipal and Regional District Tax

A person, who provides accommodation in the quantity of over four and charges the PST for it, has to also charge the MRDT (Municipal and Regional District Tax). This tax is charged in participating districts and constitutes 2% on sales of houses that are subject to the tax.

Rules of Reporting and Paying the PST

A seller is obliged to report and pay the PST he charges from the customers. It doesn’t matter if it was collected or not. The PST charged must be paid by the end of the month following the month in which it was reported.

Frequency of reporting the PST is set at the time of seller’s registration with the ministry.

If a seller collects the PST, it is compulsory to remit it to the ministry.

Payment Options

Filing returns and remitting the PST can be done in person, online, via internet banking system, regular mail, or electronic funds transfer.

Any Canadian business that has $1,5 million turnover or more is required to pay the PST electronically.

Documentation for Exclusions

There is a certain amount of exclusions that can be provided only if a customer provides required documentation for it. If a customer fails to do so, a seller has to charge the PST from him. However, if a customer provides necessary documentation later, a seller can refund him the amount charged for the PST.

Rules of Refunding the PST to Clients

A seller can refund the PST charged under the following conditions:

1. If a customer provides documentation as a proof of his eligibility for being exempt from the PST within 180 days after it was paid.

2. If a customer was not required to pay the PST, but was charged the tax, it can be refunded within 180 days after the sale was made.

3. In case of full or partial refund of a purchase cost.

4. If a motor vehicle was returned within the period of 1 year after the purchase.

If a seller has made a refund of the PST under any of the conditions listed above, he is eligible to apply for a refund to the ministry.

Keeping of Records

Any books, records and documents regarding business of a seller must be kept for the time period of five years. Books and records that are older than five years can be destroyed. A seller can also destroy documents that are not older than five years after getting the permission from the ministry in a written form.