British Columbia: Transition to the Goods and Services Tax - Payment of the GST/HST by B.C. Government Entities
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British Columbia: Transition to the Goods and Services Tax – Payment of the GST/HST by B.C. Government Entities
GST/HST Info Sheet GI-155
March 2013
Beginning April 1, 2013, the 12% harmonized sales tax (HST) will no longer apply on taxable supplies of property or services made in British Columbia (B.C.), or to personal property or services imported or brought into B.C. In its place, the 5% goods and services tax (GST) will apply to such taxable supplies.
This info sheet explains when the GST or the HST applies to taxable supplies of property and services acquired by B.C. government entities during the period that includes April 1, 2013.
Taxable supplies of property and services to British Columbia government entities
All B.C. government entities – including departments, agencies, boards, commissions and Crown corporations – currently pay the GST or the HST on their purchases of taxable supplies of goods and services, as applicable, depending on the place of supply. This will not change after the HST is eliminated in B.C.
B.C. government entities will pay the GST on consideration that becomes due on or after April 1, 2013 (unless it was paid before that date) with respect to taxable supplies of property or services made in B.C.
Effective April 1, 2013, B.C. government entities will continue to pay the GST or the HST on their acquisitions of taxable supplies of property or services, as applicable, based on the place of supply.
Accordingly, suppliers will continue to charge the GST or the HST on taxable supplies made to B.C. government entities.
Suppliers should not rely on or accept any Crown funds exemption certificates or certification clauses requesting GST or HST relief at the point of sale.
Application of the transitional rules
B.C. government entities will be subject to the transitional rules respecting the return to the GST in B.C. As such, suppliers will need to apply the transitional rules to supplies made to B.C. government entities during the transition period from HST to GST.
Information about the transitional rules can be found in the following documents:
Province of B.C. documents
Provincial Sales Tax (PST) Notice 2012-010, General Transitional Rules for the Re-implementation of the Provincial Sales Tax, released by the Government of British Columbia on October 15, 2012.
Information respecting the B.C. Provincial Sales Tax (PST)
Coinciding with the elimination of the HST in B.C. and the return to the GST, the B.C. Government will implement a PST, effective April 1, 2013. More information on the B.C. PST can be found by contacting 1-877-388-4440 or by visiting the Government of British Columbia Web site at www.gov.bc.ca and select "Learn about the transition to PST" under "Popular Services".
This info sheet does not replace the law found in the Excise Tax Act (the Act) and its regulations. It is provided for your reference. As it may not completely address your particular operation, you may wish to refer to the Act or appropriate regulation, or contact any CRA GST/HST rulings office for additional information. A ruling should be requested for certainty in respect of any particular GST/HST matter. Pamphlet RC4405, GST/HST Rulings – Experts in GST/HST Legislation, explains how to obtain a ruling and lists the GST/HST rulings offices. If you wish to make a technical enquiry on the GST/HST by telephone, please call 1-800-959-8287.
Reference in this publication is made to supplies that are subject to the GST or the HST. The HST applies in the participating provinces at the following rates: 13% in Ontario, New Brunswick and Newfoundland and Labrador, 15% in Nova Scotia, and 12% in British Columbia. The GST applies in the rest of Canada at the rate of 5%. If you are uncertain as to whether a supply is made in a participating province, you may refer to GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax – Place of Supply Rules for Determining Whether a Supply is Made in a Province.
Effective April 1, 2013, the 12% HST in British Columbia will be replaced by the 5% GST and a provincial sales tax. It is also proposed that, effective April 1, 2013, the provincial sales tax and the 5% GST currently in effect in Prince Edward Island will be replaced by a 14% HST.
If you are located in Quebec and wish to make a technical enquiry or request a ruling related to the GST/HST, please contact Revenu Québec at 1-800-567-4692. You may also visit the Revenu Québec Web site to obtain general information.
All technical publications related to GST/HST are available on the CRA Web site at www.cra.gc.ca/gsthsttech.
- Date modified:
- 2013-03-15