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Before making a major financial decision you
should consult a qualified professional.
PST was re-implemented in BC effective April 1,
2013.
A business must keep information in their records to show why a PST
exemption was granted on a sale or lease. If this is not done, the
business can be assessed for the PST plus penalties and interest.
The required information to be retained includes:
1. the purchaser's PST number, or, if the purchaser doesn't have
one,
2. a completed PST exemption certificate.
You can now verify
a purchaser's PST number, to help ensure that their claims for certain
PST exemptions are valid. The verification service is free and optional.
There is a link to this on the BC
Tax Exemptions page, which indicates that you are not required to verify the PST number of
your customer in order to provide the exemption. To use the PST
verification service, you have to have the purchaser's PST number as well
as their Business Number from CRA. As a reader pointed out, the
Business Number of a customer is not usually known to the supplier, so the
verification service is not all that useful!
The purchaser is responsible to ensure that they qualify for the
exemption being claimed. If they complete an exemption certificate
but don't qualify for the exemption, they are responsible for paying the
PST, not the vendor.
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