Sales taxes in British Columbia were levied via the Harmonized Sales Tax (commonly referred to as the "HST"), which replaced the separate Provincial Sales Tax (PST) and federal Goods and Services Tax (GST) on 1 July 2010. On 26 August 2011 Elections BC, the independent electoral overseer, announced that British Columbia voters, via a mail-in ballot, defeated the new tax in the binding British Columbia sales tax referendum, 2011 conducted in June and July 2011. As of April 2013, the 5% Federal GST and 7% provincial PST are collected separately again.

The HST used a value-added tax structure that allowed most businesses to claim input tax credits (ITC) on the 12% HST paid. This was unlike the PST which applies to many purchases made by a business and is not refunded, leaving the PST embedded in the price of the finished goods and services as a sunk cost to the business. One of the purposes of the HST was to take away the hidden tax as well as lower administrative costs incurred by businesses.

In controlling related costs we can assist your company in the compilation of information and preparation of government agencies tax returns such as PST and GST.

As always, it is up to you to decide to do the work the easy way or the hard way. In any case, we are always available to answer your questions. Feel free to contact us by e-mail or telephone at 604-836-7908.