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This Act is current to October 3, 2018
See the Tables of Legislative Changes for this Act’s legislative history, including any changes not in force.

Provincial Sales Tax Act

[SBC 2012] CHAPTER 35

Part 1 — Interpretation

Division 1 — Definitions and Interpretation

Definitions

1   In this Act:

"accommodation" means

(a) lodging in a hotel, motel, resort, boarding house, rooming house or bed and breakfast establishment, other than lodging excluded by regulation, and

(b) lodging in a prescribed dwelling;

"affixed machinery" means machinery, equipment or apparatus that is used directly in the manufacture, production, processing, storage, handling, packaging, display, transportation, transmission or distribution of tangible personal property or the provision of software or a service and is affixed to, or installed in, a building, a structure or land so that it ceases to be personal property at common law, but does not include the following:

(a) machinery, equipment or apparatus that is affixed to, or installed in, a building, structure or land for the purpose of

(i) heating, air conditioning or lighting a building or structure,

(ii) sewage disposal for a building or structure, or

(iii) lifting persons or freight within a building or structure by elevator or escalator;

(b) machinery, equipment or apparatus that

(i) is of such a size that it must be constructed on the site where it is to be used,

(ii) by its nature or design, would normally be expected to remain, for its useful life, on the site at which it is constructed,

(iii) does not run on rails or tracks, or does not otherwise move around on or from the site at which it is constructed, and

(iv) cannot be moved from the site at which it is constructed without

(A) dismantling the machinery, equipment or apparatus, or

(B) dismantling or causing substantial damage to the building or structure to which it is affixed or in which it is installed;

(c) other prescribed machinery, equipment or apparatus;

"apparatus" means a complex machine or device designed to accomplish a specific purpose and consisting of an integrated assembly of parts each having a definite function;

"assessment" includes reassessment;

"associated corporation" means a corporation that is associated with another corporation within the meaning of section 256 of the Income Tax Act (Canada);

"band" has the same meaning as in section 2 of the Indian Act (Canada);

"BC resident" means a person who

(a) resides, ordinarily resides or carries on business in British Columbia, or

(b) enters British Columbia with the intention of residing or carrying on business in British Columbia;

"board member" means

(a) a member of a board of directors of a corporation, and

(b) except in sections 165 [claim for refund] and 233 [offence by corporation], a person who is deemed to be a board member of a corporation under section 209;

"boat" means a vessel or other craft that is designed for transporting or drawing on water persons or things, regardless of the method of propulsion or lack of method of propulsion;

"collection agent" means

(a) a customs officer, and

(b) if an agreement is in force between the Canada Post Corporation and the government of Canada or an agent of the government of Canada providing for the collection of tax under Division 5 [Property Brought into British Columbia from Outside Canada] of Part 3 by that corporation, a postal agent;

"collector" means the following:

(a) a registrant;

(b) a person who is required under section 169 (1) to (4), 170, 171, 172 or 172.1 to be registered under section 168 but who is not registered;

(c) a person referred to in section 169 (5) during the first month in which the person is a vendor and while the person is not a registrant;

"collector's return" means a return filed under section 186;

"conveyance" does not include a vehicle;

"customs officer" means an officer as defined in section 2 of the Customs Act (Canada) who is employed at a customs office in British Columbia;

"dedicated telecommunication service" means the right, whether exercised or not, to send from British Columbia or receive in British Columbia a telecommunication by using a circuit, a communications channel, a partial communications channel or any other means of sending or receiving a telecommunication that is dedicated to the exclusive use of the purchaser of the service;

"dedicated telecommunication system" means a circuit, a communications channel, a partial communications channel or any other means of sending or receiving a telecommunication that is dedicated to the exclusive use of a person as a result of that person having purchased the right to send from British Columbia or receive in British Columbia a telecommunication by that circuit, communications channel, partial communications channel or other means of sending or receiving a telecommunication;

"designated accommodation area" means an area designated by regulation under section 240 (1) (b);

"designated recipient", in relation to a designated accommodation area, means the municipality, regional district or eligible entity designated by regulation for the purposes of the tax imposed under sections 123 (1), 123.2 (3) and 123.3 (3) in the designated accommodation area;

"direct seller" means a person who

(a) does not regularly make retail sales of exclusive products in British Columbia from an established commercial premises, and

(b) sells exclusive products primarily to independent sales contractors;

"director" means a person designated by the minister to administer this Act;

"electronic device" means a device by which a person may

(a) send, receive, download, view or access a telecommunication, or

(b) use software;

"eligible charity" means

(a) a registered charity, or

(b) a corporation that

(i) is a society, as defined in the Societies Act, and

(ii) is a member of the British Columbia Association of Healthcare Auxiliaries;

"eligible entity" means the following:

(a) an entity that

(i) is a not-for-profit business association,

(ii) has a place of business in a designated accommodation area, and

(iii) actively engages in tourism marketing, programs or projects in the designated accommodation area;

(b) an entity that meets the prescribed qualifications;

"eligible tangible personal property" means tangible personal property other than the following:

(a) a vehicle;

(b) an aircraft;

(c) a boat;

(d) liquor;

(e) other prescribed tangible personal property;

"eligible taxable service" means a taxable service other than accommodation, legal services or a telecommunication service;

"energy product" means the following:

(a) natural gas;

(b) fuel oil, other than kerosene, used for the purposes of heating, cooling or raising steam;

(c) propane in a vaporized form delivered

(i) by a public utility, as defined in the Utilities Commission Act,

(ii) by pipe, and

(iii) to purchasers at the place at which the propane will be used;

(d) other prescribed tangible personal property;

"entry date", in relation to tangible personal property, means the date on which the tangible personal property is first brought or sent into or delivered in British Columbia;

"Excise Tax Act" means the Excise Tax Act (Canada);

"exclusive product" means tangible personal property that

(a) is acquired, manufactured or produced by a direct seller, and

(b) is primarily offered to a purchaser at a retail sale by an independent sales contractor of the direct seller,

but does not include liquor, a vehicle, a boat, an aircraft or a manufactured building;

"fair market value" means the following:

(a) in relation to tangible personal property other than a boat or a modified motor vehicle, the price at which the legal and beneficial interest in the tangible personal property would, if unencumbered, be conveyed by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market and that must be determined

(i) in a manner that includes any charges, costs or expenses referred to in section 10 (2) (e) and (f) [original purchase price of tangible personal property], and

(ii) for the purposes of sections 49 and 100, in a manner that also includes any costs or expenses referred to in section 10 (2) (f) that were incurred by the person who provided the gift;

(a.1) in relation to a boat, the price at which the legal and beneficial interest in the boat and any property, other than prescribed property, that, at or before the time that title to the boat passes, is, or is intended to be, attached to, stored in or used in connection with the operation of the boat, would, if unencumbered, be conveyed by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market and that must be determined

(i) in a manner that includes any charges, costs or expenses referred to in section 10 (2) (e) and (f) [original purchase price of tangible personal property] that were incurred in relation to the boat and the property, and

(ii) for the purposes of sections 49 and 100, in a manner that also includes any costs or expenses referred to in section 10 (2) (f) that were incurred in relation to the boat and the property and were incurred by the person who provided the gift;

(a.2) in relation to a modified motor vehicle, the price of the modified motor vehicle as otherwise would be determined under paragraph (a), if that paragraph were applicable, less the portion of that price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability;

(b) in relation to software, the price at which the legal and beneficial interest in the software would, if unencumbered, be conveyed or provided by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market;

(c) in relation to a taxable service, the price at which the legal and beneficial interest in the taxable service would, if unencumbered, be provided by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market;

"First Nation individual" means an individual

(a) who is an Indian, as defined in the Indian Act (Canada), and

(b) whose property is exempt from taxation under section 87 of the Indian Act (Canada) or under a provision of a final agreement equivalent to that section;

"fleet licensing date", in respect of vehicles licensed in a calendar year as part of a fleet, means the first date in that calendar year that the fleet vehicles are licensed as such;

"fuel oil" means the following:

(a) renewable diesel fuel, as defined in Schedule 1 of the Carbon Tax Act;

(b) any liquid fuel containing any derivative of coal, petroleum or natural gas, other than the following:

(i) gasoline;

(ii) propane;

(iii) butane;

(iv) ethane;

(v) pentanes plus, as defined in Schedule 1 of the Carbon Tax Act;

"improvement to real property" does not include affixed machinery;

"independent sales contractor", in relation to a direct seller, means an individual who

(a) has a right to purchase exclusive products from the direct seller or from another independent sales contractor of the direct seller for the purpose of resale,

(b) is not an agent or employee of the direct seller,

(c) purchases exclusive products referred to in paragraph (a) for resale or for the individual's own use or consumption, and

(d) sells or offers to sell the exclusive products to a purchaser only

(i) temporarily at an established business premises,

(ii) at premises that are not a business premises, or

(iii) at the individual's private residence;

"lease", except in section 33 (2) [when consideration becomes due], means an agreement under which a person is given a right to use tangible personal property, but does not include the following:

(a) an agreement under which the person supplying the tangible personal property supplies a person to operate the property;

(b) the leasing of furnishings if

(i) the furnishings are leased under an agreement to rent a house, apartment or other residential accommodation, and

(ii) the rent payments under the agreement are not divided into separate amounts for the accommodation and the furnishings;

(c) a right to use tangible personal property that is supplied with the purchase of accommodation if there is no separate price for the right to use the tangible personal property;

(d) a right to use tangible personal property that, in prescribed circumstances, is merely incidental to an agreement for the right to use real property, or to an agreement for the provision of services that are not subject to tax under this Act;

"lease price" means the lease price under Division 2 [Purchase Price and Lease Price];

"legal services" means

(a) services that come within the meaning of the practice of law under the Legal Profession Act,

(b) services described in section 18 of the Notaries Act, and

(c) legally related services prescribed as legal services,

but does not include services provided by a person to the person's employer in the course of employment;

"lessee", except in section 33 (2) [when consideration becomes due], means a person who leases, in or outside British Columbia, tangible personal property that

(a) is for use or is used by the person in British Columbia,

(b) is for use or is used in British Columbia by another person at the first person's expense,

(c) is for use or is used in British Columbia by a principal for whom the first person acts as agent, or

(d) is for use or is used in British Columbia by another person at the expense of a principal for whom the first person acts as agent;

"lessor" means a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person,

(a) who, in the ordinary course of the person's business, leases or offers to lease tangible personal property to a lessee, and

(b) who does one or more of the following:

(i) carries on business in British Columbia;

(ii) enters into leases in British Columbia with a lessee;

(iii) leases, to a lessee or any other person referred to in the definition of "lessee", tangible personal property that is in British Columbia at the time the lease is entered into;

(iv) transfers possession of or delivers the tangible personal property to a lessee, or any other person referred to in the definition of "lessee", in British Columbia;

"licensing date", in respect of a vehicle that is licensed as part of a fleet, means the fleet licensing date;

"liquor" has the same meaning as in the Liquor Control and Licensing Act;

"liquor permit" means a permit of a prescribed class of permits issued under the Liquor Control and Licensing Act;

"manufactured building" means a manufactured mobile home, a manufactured modular home or a portable building;

"manufactured mobile home" means

(a) a mobile home manufactured to Canadian Standards Association Standard Z240, or

(b) any other mobile home that is similar in design and construction to a mobile home constructed to Canadian Standards Association Standard Z240,

if the home is in all essential features completely constructed before delivery from the factory, but does not include the following: 

(c) a recreational vehicle;

(d) a travel trailer, including a Park Model travel trailer manufactured to Canadian Standards Association Standard Z240;

(e) a slide-on camper, a chassis-mounted camper or other similar camper;

(f) a prescribed structure, vehicle or component of a vehicle used for a prescribed use;

"manufactured modular home" means

(a) a modular home manufactured to Canadian Standards Association Standard A277, or

(b) any other modular home built to a standard required by the National Building Code of Canada and qualifying for Canada Mortgage and Housing Corporation financing,

if each module is in all essential features completely constructed before delivery from the factory;

"meal" does not include a prescribed meal;

"modified business vehicle" means a passenger vehicle, other than a multijurisdictional vehicle,

(a) that, for business use, is brought or sent into British Columbia, delivered in British Columbia, purchased or leased, and

(b) that is modified by the addition of equipment or apparatus that

(i) enables the vehicle to be used for a specific business purpose, and

(ii) is not related to the operation of the vehicle as a vehicle;

"modified motor vehicle" means a motor vehicle, other than a multijurisdictional vehicle, that

(a) is manufactured or modified to facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(b) is equipped with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability;

"month" means a calendar month;

"motor vehicle" has the same meaning as in the Motor Vehicle Act;

"multijurisdictional vehicle" means a vehicle in respect of which tax is payable under section 69 (1);

"non-resident" means a person who does not reside, ordinarily reside or carry on business in British Columbia and who

(a) owns real property in British Columbia, or

(b) leases, as lessee, real property in British Columbia if the term of the lease, including the cumulative total of all options and rights to extend or renew that lease, is at least 5 years;

"non-taxable component" means property, software or a service that, if purchased separately from a taxable component, would not be subject to tax under this Act or would be exempt from tax under this Act;

"online accommodation platform" means, subject to the regulations, an online marketplace that enables or facilitates transactions in relation to accommodation located in British Columbia;

"original lease price", in relation to tangible personal property, means the lease price of the tangible personal property under section 13;

"original purchase price" means the following:

(a) in relation to a passenger vehicle other than a modified business vehicle or a modified motor vehicle that is a passenger vehicle, the purchase price of the passenger vehicle under section 10.1 (1);

(a.1) in relation to a modified business vehicle, the purchase price of the modified business vehicle under section 10.1 (2);

(a.2) in relation to a modified motor vehicle that is a passenger vehicle, the purchase price of the modified motor vehicle under section 10.1 (3);

(b) in relation to software, the purchase price of the software under section 15;

(c) in relation to a taxable service, the purchase price of the taxable service under section 18 [related service], 19 [accommodation], 20 [legal services] or 21 [telecommunication service];

"parents' advisory council" means a parents' advisory council established under section 8 of the School Act, or under section 8 of that Act as it applies under section 166.26 of that Act;

"passenger vehicle" means

(a) a motor vehicle designed primarily as a means of transport for individuals, other than a motor vehicle excluded by regulation, and

(b) a prescribed vehicle;

"portable building" means a building that

(a) is in all essential features completely constructed before delivery, and

(b) is designed to be moved from location to location as a whole building without being self-propelled,

including a portable floating structure, but does not include the following:

(c) a manufactured mobile home;

(d) a manufactured modular home;

(e) a building that is principally designed for use as a building ancillary to a residence;

(f) a prescribed building;

"portable floating structure" means a floating structure that

(a) is not designed as a means of transportation or to be self-propelled, and

(b) is sold as a unit consisting of

(i) a building that covers most of the surface of the platform or barge referred to in subparagraph (ii), and

(ii) a platform or barge, the primary purpose of which is the flotation of the building;

"postal agent" means the Canada Post Corporation established under the Canada Post Corporation Act and its officers, employees and agents;

"promotional distribution" means the provision by a person to another person of promotional material for which

(a) the purchase price paid by the person providing the promotional material exceeds the amount of the payment specifically made for that promotional material by the person to whom it is provided, or

(b) a purchase price is not specifically charged to and required to be paid by the person to whom that promotional material is provided;

"promotional distributor" means a person who provides, by way of promotional distribution to another person, promotional material;

"promotional material" means tangible personal property, software or a telecommunication service that is provided for one or more of the following purposes:

(a) to describe, or to promote or encourage the purchase, use or consumption of, tangible personal property, software, services or real property;

(b) to provide or distribute to a person a catalogue, directory, listing or compilation of persons, places, prices, services, commodities or businesses in respect of the purchase, use or consumption of tangible personal property, software, services or real property;

(c) a prescribed purpose,

but does not include a vehicle, boat or aircraft that is provided for one or more of the purposes referred to in paragraphs (a) to (c);

"prototype" means the first full-scale functional form of a new type or a new construction of tangible personal property, but does not include software or prescribed tangible personal property;

"purchase price" means the purchase price under Division 2 [Purchase Price and Lease Price];

"purchaser" means the following:

(a) in relation to tangible personal property, a person who acquires tangible personal property at a sale

(i) for the person's own use or consumption,

(ii) for use or consumption by another person at the expense of the person acquiring the property,

(iii) for use or consumption by a principal for whom the person acquiring the property acts as agent, or

(iv) for use or consumption by another person at the expense of a principal for whom the person acquiring the property acts as agent;

(b) in relation to software, a person who agrees to pay or is otherwise obliged to pay consideration for software

(i) provided to the person for the person's own use or benefit,

(ii) provided to another person for that person's use or benefit at the expense of the person who agrees to pay or is otherwise obliged to pay consideration for the software,

(iii) provided to a principal for whom the person acts as agent for the use or benefit of that principal, or

(iv) provided to another person for that person's use or benefit at the expense of a principal for whom the person who agrees to pay or is otherwise obliged to pay consideration for the software acts as agent;

(c) in relation to a related service, legal services or a telecommunication service, a person who agrees to pay or is otherwise obliged to pay consideration for a related service, legal services or a telecommunication service

(i) provided to the person for the person's own use or benefit,

(ii) provided to another recipient for that recipient's use or benefit at the person's expense,

(iii) provided to a principal for whom the person acts as agent for the use or benefit of that principal, or

(iv) provided to another recipient for that recipient's use or benefit at the expense of a principal for whom the person acts as agent;

(d) in relation to accommodation, a person who agrees to pay or is otherwise obliged to pay consideration for accommodation

(i) provided to the person for the person's own use or benefit,

(ii) provided to another recipient for that recipient's use or benefit at the person's expense,

(iii) provided to a principal for whom the person acts as agent for the use or benefit of that principal,

(iv) provided to another recipient for that recipient's use or benefit at the expense of a principal for whom the person acts as agent, or

(v) if the person is a tourism agent and the accommodation is for inclusion in a tourism service provided or to be provided by the tourism agent;

"registered charity" has the same meaning as in section 248 (1) of the Income Tax Act (Canada);

"registrant", except when used in relation to a registrant under Part IX of the Excise Tax Act, means a person who is registered under section 168 and whose registration is not suspended or cancelled;

"registration number" means a registration number issued under section 168 (3);

"related individual" has the same meaning as in the Property Transfer Tax Act;

"related service", except in the definition of "legal services", means any service provided to tangible personal property or any service provided to install tangible personal property, but does not include the following services:

(a) a service provided to install tangible personal property that will become affixed machinery or an improvement to real property on installation;

(b) a service provided by a person to the person's employer in the course of employment;

(c) a service provided to manufacture tangible personal property that is fundamentally different from the tangible personal property from which it was manufactured;

(d) a service provided to software, or to install software, that is subject to tax or is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property];

"reporting period", in relation to a collector or in relation to a person who enters into an agreement with the director under section 32, means the period specified by the director;

"resident taxpayer" means an individual who

(a) resides, ordinarily resides or carries on business in British Columbia, and

(b) brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property for use or consumption

(i) by the individual,

(ii) by another individual at the first individual's expense,

(iii) by another individual for whom the first individual acts as agent, or

(iv) by another individual at the expense of a principal for whom the first individual acts as agent;

"retail sale" means the following:

(a) in relation to tangible personal property, a sale of tangible personal property to a purchaser for purposes of use or consumption and not for resale;

(b) in relation to software, a sale of software to a purchaser for purposes of use or benefit and not for resale;

(c) in relation to a taxable service, a sale of the taxable service to a purchaser for purposes of use or benefit and not for resale;

"reusable container" means

(a) a container in which a product is packaged or delivered, or

(b) a pallet on which a product is packaged or delivered,

and that is capable of being returned and reused;

"sale" includes the following:

(a) a conditional sale;

(b) a sale on credit or for which the price is payable by instalments;

(c) an exchange;

(d) barter;

(e) a transfer, conditional or otherwise, of title to or possession of tangible personal property under a contract;

(f) a delivery of tangible personal property at a price or other consideration;

(g) a transfer of ownership of, title to or possession of tangible personal property

(i) given as security, by foreclosure or by repossession under lien note or conditional sale contract, whether voluntary or otherwise, or by order of a court, or by any other means by which security may be realized, or

(ii) in the process of winding up, liquidating or dissolving a corporation;

(h) a provision, by way of promotional distribution, of promotional material;

(i) a provision of software at a price or other consideration;

(j) a provision of a taxable service at a price or other consideration,

but does not include the following:

(k) the provision of tangible personal property, software or a telecommunication service that, in prescribed circumstances, is merely incidental to a contract for the provision of services that are not subject to tax under this Act;

(l) the provision of tangible personal property by a contractor for the purposes of fulfilling a contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property;

(m) except in prescribed circumstances, the provision by a registered charity, or a person acting on behalf of a registered charity, of tangible personal property of nominal value as a gift in return for a donation, all of which is provided to the registered charity;

(n) the provision of tangible personal property under an agreement for the purchase of accommodation if

(i) the fundamental and overriding objective of the agreement is the purchase of the accommodation and not the acquisition of the tangible personal property,

(ii) there is no separate purchase price for the tangible personal property, and

(iii) the total consideration payable for the accommodation, including the tangible personal property provided, is the same as, or only marginally different from, what would be the total consideration payable for the accommodation if the tangible personal property were not provided;

(o) the provision of a paper invoice to the person being invoiced;

"short term rental vehicle" means a multijurisdictional vehicle that, during a vehicle licence period,

(a) is leased primarily for periods of 28 days or less, and

(b) is made available to the public for leasing referred to in paragraph (a);

"small seller" means a person

(a) who is located in British Columbia,

(b) who sells eligible tangible personal property or software or provides taxable services at a sale in British Columbia,

(b.1) who does not sell, in the ordinary course of business, vehicles, aircraft, boats or other tangible personal property prescribed for the purposes of paragraph (e) of the definition of "eligible tangible personal property",

(b.2) who does not sell liquor, other than under a liquor permit or by auction,

(c) who does not regularly

(i) make retail sales of eligible tangible personal property or software in British Columbia from an established commercial premises, or

(ii) provide a taxable service in British Columbia from an established commercial premises,

(d) who does not maintain an established business premises in British Columbia,

(e) whose gross revenue in the previous 12 months from all retail sales of eligible tangible personal property and software and all provisions of a taxable service is $10 000 or less,

(f) whose reasonable estimate of gross revenue in the 12 months after the 12 months referred to in paragraph (e) from all sales of eligible tangible personal property and software and all provisions of a taxable service is $10 000 or less,

(g) who is not any of the following:

(i) a lessor;

(ii) an independent sales contractor;

(iii) a contractor who, for the purposes of fulfilling a contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property, purchases at a sale in British Columbia, brings or sends into British Columbia or receives delivery of in British Columbia tangible personal property;

(iv) a vendor within the meaning of paragraph (d) of the definition of "vendor", and

(h) who is not registered under section 168 and is not required under section 169, 170 or 171 to be registered under section 168;

"software" means the following:

(a) a software program that is delivered or accessed by any means;

(b) the right, whether exercised or not, to use a software program that is delivered or accessed by any means;

(c) a contractual right

(i) to receive modifications to or new versions of software programs described in paragraph (a) or (b) if modifications or new versions become available, whether or not that right is exercised, and

(ii) to which section 15 (2) (h) does not apply;

"substantially" means more than 90%;

"tangible personal property" means the following:

(a) personal property that can be seen, weighed, measured, felt or touched, or that is in any other way perceptible to the senses, and includes natural or manufactured gas;

(b) electricity;

(c) heat;

(d) affixed machinery;

(e) an improvement to real property or part of an improvement to real property that is removed from the site at which it is affixed or installed, while it is removed from that site;

"tax", in relation to tax under this Act, includes, except in section 199 [assessment if amount not paid or remitted or if excess deduction or refund],

(a) an amount a person must pay to the government under section 187 (2) [certificate required for bulk transaction], and

(b) an amount for which a person is personally liable to the government under section 222 (4) [responsibility of person having control of property];

"taxable component" means tangible personal property, software or a taxable service that would be subject to tax under this Act if purchased separately from other property or services;

"taxable service" means any of the following:

(a) services described in section 116 (2) (b) [tax if contract for property conversion related to purchase] that are provided under the contract referred to in that provision;

(b) services described in section 117 (2) (b) [tax if contract for modification of purchased property] that are provided under the contract referred to in section 117 (2) (a) (i) or (ii);

(c) a related service;

(d) accommodation;

(e) legal services;

(f) a telecommunication service;

"taxpayer return" means a taxpayer return under section 193;

"telecommunication" means signs, signals, writing, images, sound or intelligence of any nature;

"telecommunication service" means any of the following:

(a) the right, whether exercised or not, to utilize a telecommunication system to send or receive a telecommunication by means of an electronic device that is ordinarily situated in British Columbia;

(b) the utilization of a telecommunication system to send or receive a telecommunication by means of an electronic device that is ordinarily situated in British Columbia;

(c) a dedicated telecommunication service;

(d) the right, whether exercised or not, to download, view or access, by utilizing a telecommunication system, one or more of the following telecommunications by means of an electronic device that is ordinarily situated in British Columbia:

(i) an audio book;

(ii) an audio program;

(iii) music;

(iv) a ring tone;

(v) a television program, motion picture or other video;

"telecommunication system" means a wire, cable, radio, optical or other electromagnetic system, or a similar technical system, for the transmission, emission or reception of a telecommunication;

"tourism agent" means a person who

(a) purchases accommodation from a vendor, and

(b) for payment, makes all or any part of that accommodation available for use by one or more persons as part of a tourism service;

"trailer" has the same meaning as in the Motor Vehicle Act;

"use",

(a) in relation to tangible personal property, includes the following:

(i) the exercise of any right or power over tangible personal property incidental to the ownership of it, other than the sale of the property;

(ii) the leasing by a person of tangible personal property to another person;

(iii) the storing, keeping or retaining of tangible personal property for any purpose;

(iv) the provision of tangible personal property by way of promotional distribution;

(v) the utilization of tangible personal property by the person to whom the tangible personal property is provided by way of promotional distribution;

(vi) the employment or utilization of tangible personal property by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person;

(vii) the consumption, employment or utilization of tangible personal property by a person in the course of providing a service;

(viii) the consumption, employment or utilization of tangible personal property for the purposes of fulfilling a contract for the supply and installation of affixed machinery or improvements to real property;

(ix) the provision by a registered charity of tangible personal property of nominal value as a gift in return for a donation,

but does not include the following:

(x) the exercise of a right or power over or the storing, keeping or retaining of tangible personal property that was brought or sent into or delivered in British Columbia for the sole purpose of subsequently transporting it out of British Columbia for use outside British Columbia;

(xi) the exercise of a right or power over or the storing, keeping or retaining of tangible personal property, other than reusable containers, that was brought or sent into or delivered in British Columbia for the sole purpose of being processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property that is to be transported outside British Columbia for use solely outside British Columbia other than for the purpose of fulfilling a contract for the supply and installation of affixed machinery or improvements to real property situated outside British Columbia;

(xii) the storing, keeping or retaining of tangible personal property that was brought or sent into or delivered in British Columbia for the sole purpose of being repaired and, after repair, being transported outside British Columbia for use outside British Columbia;

(xiii) the storing, keeping or retaining of tangible personal property for the sole purpose of resale,

(b) in relation to software, includes the following:

(i) the sending, receiving, downloading, viewing or accessing of software by any means, including if possession of the software is maintained by the provider of the software or another person;

(ii) the exercise of any right or power over software incidental to the ownership of it;

(iii) the storing, keeping or retaining of software for any purpose;

(iv) the holding of a right described in paragraph (b) or (c) of the definition of "software";

(v) the provision of software by way of promotional distribution;

(vi) the utilization of software by the person to whom the software is provided by way of promotional distribution;

(vii) the employment or utilization of software by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person;

(viii) the employment or utilization of software by a person in the course of providing a service,

(c) in relation to a taxable service, includes the employment or utilization of a taxable service by a person in the course of providing a service,

(d) in relation to a related service, includes the provision by a person of a related service to another person,

(e) in relation to accommodation, includes the following:

(i) the exercise of any right or power over accommodation incidental to the ownership of it, other than the sale of the accommodation;

(ii) the employment or utilization of accommodation by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person, and

(f) in relation to a telecommunication service, includes the following:

(i) the sending, receiving, downloading, viewing or accessing of a telecommunication by any means, including if possession of the telecommunication, telecommunication system or telecommunication service is maintained by the provider of the telecommunication service or another person;

(ii) in relation to paragraph (d) of the definition of "telecommunication service", the exercise of any right or power over the right to send, receive, download, view or access a telecommunication incidental to the right;

(iii) the provision by a person of a telecommunication service to another person;

(iv) the storing, keeping or retaining of a telecommunication or telecommunication service for any purpose;

(v) the holding of a right to send, receive, download, view or access a telecommunication;

(v.1) the provision of a telecommunication service by way of promotional distribution;

(v.2) the utilization of a telecommunication service by the person to whom the telecommunication service is provided by way of promotional distribution;

(v.3) the utilization of, or the holding of a right to utilize, a telecommunication system;

(vi) the employment or utilization of a telecommunication service by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person;

"user" means the following:

(a) a person who utilizes in British Columbia tangible personal property

(i) for the person's own use or consumption,

(ii) for the use or consumption of another person at the expense of the person utilizing the property,

(iii) for the use or consumption of a principal for whom the person utilizing the property acts as agent, or

(iv) for the use or consumption of another person at the expense of a principal for whom the person utilizing the property acts as agent;

(b) a person who utilizes in British Columbia software

(i) for the person's own use or benefit,

(ii) for the use or benefit of another person at the expense of the person utilizing the software,

(iii) for the use or benefit of a principal for whom the person utilizing the software acts as agent, or

(iv) for the use or benefit of another person at the expense of a principal for whom the person utilizing the software acts as agent;

(c) a promotional distributor who provides promotional material by way of promotional distribution;

(d) a person who utilizes in British Columbia accommodation

(i) for the person's own use or benefit,

(ii) for the use or benefit of another person at the expense of the person utilizing the accommodation,

(iii) for the use or benefit of a principal for whom the person utilizing the accommodation acts as agent, or

(iv) for the use or benefit of another person at the expense of a principal for whom the person utilizing the accommodation acts as agent;

"vehicle" has the same meaning as in the Motor Vehicle Act;

"vehicle licence period", in respect of a vehicle, means the period beginning on a date on which a licence is issued for the vehicle and ending on the expiry date for the licence established on that licensing date;

"vehicle registration legislation" means the Commercial Transport Act, Motor Vehicle Act or Off-Road Vehicle Act;

"vendor" means the following:

(a) in relation to tangible personal property, a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who, in the ordinary course of the person's business, in British Columbia, sells, offers to sell, provides or offers to provide tangible personal property to a purchaser at a retail sale in British Columbia, but does not include

(i) a small seller, or

(ii) an independent sales contractor, but only in relation to the sale of exclusive products to a purchaser at a retail sale in British Columbia;

(b) in relation to software, a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who, in the ordinary course of the person's business, in British Columbia, sells, offers to sell, provides or offers to provide software to a purchaser at a retail sale in British Columbia, but does not include a small seller;

(c) in relation to a taxable service other than accommodation, a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who, in the ordinary course of the person's business, in British Columbia, sells, offers to sell, provides or offers to provide a taxable service to a purchaser at a retail sale in British Columbia, but does not include a small seller;

(d) in relation to accommodation, a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who sells, offers to sell, provides or offers to provide accommodation in British Columbia to a purchaser at a retail sale, but does not include a tourism agent.

Proof of residence in British Columbia

2   For the purposes of this Act, any of the following is proof, in the absence of evidence to the contrary, that an individual resides in British Columbia:

(a) the receipt by the individual of a grant under section 2 of the Home Owner Grant Act;

(b) the receipt by a person of a grant in respect of the individual's residence and for the individual's benefit under section 3, 4 or 5 of the Home Owner Grant Act;

(c) the enrolment of the individual as a beneficiary under the medical services plan continued under the Medicare Protection Act.

Deemed expenses of a person

3   (1) For the purposes of this Act, a person who, for the use or consumption by another person, acquires at a sale, leases as lessee, utilizes, brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property

(a) is deemed to have done so at the first person's expense, or

(b) if the first person acts on behalf of or as an agent for a principal, is deemed to have done so at the expense of the principal,

unless the other person acquires the tangible personal property at a sale or is given the right to use the tangible personal property under a lease.

(2) For the purposes of this Act, a person who, for the use or benefit of another person, agrees to pay or is otherwise obliged to pay consideration for software or a taxable service

(a) is deemed to have done so at the first person's expense, or

(b) if the first person acts on behalf of or as an agent for a principal, is deemed to have done so at the expense of the principal,

unless the other person agrees to pay or is otherwise obliged to pay consideration for the software or taxable service.

Transactions deemed to be transfer of possession

4   (1) For the purposes of the definition of "sale", the director may determine that a transaction in relation to tangible personal property was in place of a transfer of title, exchange or barter.

(2) If the director makes a determination under subsection (1), for the purposes of the definition of "sale", the transaction is deemed to be a transfer of possession of the tangible personal property under a contract.

Carrying on business in British Columbia

5   For the purposes of this Act, a person is deemed to be carrying on business in British Columbia if

(a) the person's name, or any name under which the person carries on business, is listed in a telephone directory

(i) for any part of British Columbia, and

(ii) in which an address or telephone number in British Columbia is given for the person,

(b) the person's name, or any name under which the person carries on business, appears or is announced in any advertisement in which an address or telephone number in British Columbia is given for the person, or

(c) the person has, in British Columbia,

(i) employees or other representatives, or

(ii) a warehouse, office or place of business.

Deemed use of tangible personal property or software in the course of business

6   For the purposes of this Act, a person is deemed to use tangible personal property or software in the course of the person's business if

(a) the tangible personal property or software is used

(i) by another person at the first person's expense,

(ii) by a principal for whom the first person acts as agent, or

(iii) by another person at the expense of a principal for whom the first person acts as agent, and

(b) the use by the other person referred to in paragraph (a) is intended to assist the business of the first person referred to in that paragraph.

How tax is to be calculated

7   (1) The tax imposed under this Act must be

(a) calculated separately on every sale or lease of tangible personal property or every sale of software or a taxable service, and

(b) computed to the nearest cent, with 1/2 cent counted as one cent.

(2) For the purposes of subsection (1) (a), if 2 or more items of tangible personal property are sold or leased on the same occasion or as part of one transaction and the items are subject to tax imposed under this Act at the same rate, the total of the sales or leases is deemed to be one sale or lease.

(3) For the purposes of subsection (1) (a), if 2 or more items of software are sold on the same occasion or as part of one transaction and the items are subject to tax imposed under this Act at the same rate, the total of the sales is deemed to be one sale.

(4) For the purposes of subsection (1) (a), if 2 or more taxable services are sold on the same occasion or as part of one transaction and the taxable services are subject to tax imposed under this Act at the same rate, the total of the sales is deemed to be one sale.

Liability of other persons

8   (1) If there is more than one purchaser of tangible personal property, software or a taxable service subject to tax under this Act, each purchaser is jointly and severally liable for the tax.

(2) If there is more than one lessee of tangible personal property subject to tax under this Act, each lessee is jointly and severally liable for the tax.

Division 2 — Purchase Price and Lease Price

Purchase price of tangible personal property

9   For the purposes of this Act, the purchase price of tangible personal property is as follows:

(a) subject to paragraphs (b) to (f), the purchase price of the tangible personal property under section 10 [original purchase price of tangible personal property];

(b) subject to paragraphs (c) to (f), if section 22 (1) [reduced purchase price] applies in respect of the purchase, the purchase price of the tangible personal property under that section;

(c) subject to paragraphs (d) to (f), if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the tangible personal property under that section;

(d) subject to paragraphs (d.1) to (f), if section 24 [purchase price if trade-in allowed on purchase of tangible personal property] applies in respect of the sale, the purchase price of the tangible personal property under that section;

(d.1) subject to paragraphs (d.2) to (f), if section 26 [purchase price if bundled purchase] applies in respect of the tangible personal property, the purchase price of the tangible personal property under that section;

(d.2) subject to paragraphs (e) and (f), if section 16 [purchase price of promotional material acquired or received by promotional distribution] applies in respect of the tangible personal property, the purchase price of the tangible personal property under that section;

(e) subject to paragraph (f), if section 25 [depreciated purchase price of tangible personal property] applies in respect of the tangible personal property, the purchase price of the tangible personal property under that section;

(f) if the tangible personal property is a modified motor vehicle, the purchase price of the modified motor vehicle under paragraphs (a) to (e) less that portion of the price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability.

Original purchase price of tangible personal property

10   (1) For the purposes of this Act, the purchase price of tangible personal property is equal to the total value of the consideration that the seller or person from whom the tangible personal property passes accepts as the price or on account of the price of the tangible personal property covered by the sale.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of tangible personal property includes the following:

(a) a price in money accepted by the seller or person from whom the tangible personal property passes as the price or on account of the price of the tangible personal property covered by the sale;

(b) the value of services accepted by the seller or person from whom the tangible personal property passes as the price or on account of the price of the tangible personal property covered by the sale;

(c) the value of the tangible personal property or software exchanged or acquired by the seller or person from whom the tangible personal property passes as the price or on account of the price of the tangible personal property covered by the sale;

(d) in the case of tangible personal property that is repossessed, the value of the tangible personal property;

(e) any charges for

(i) transportation or delivery of the tangible personal property sold, or

(ii) interest, finance, service, customs and excise charges in relation to the tangible personal property sold

that are incurred at or before the time that title to the tangible personal property covered by the sale passes under that sale, whether or not those charges are shown separately on any record of the sale, but does not include interest charges on a conditional sale contract if the amount of those charges is segregated on the record of sale or is billed separately to the purchaser, and is payable over the term of the contract;

(f) if the tangible personal property is purchased, manufactured, processed or otherwise acquired outside British Columbia and subsequently brought or sent into or received in British Columbia for use or consumption in British Columbia, the costs and expenses incurred by the user, or by a person who is not a BC resident and who brought or sent into British Columbia, or received delivery of in British Columbia, the tangible personal property, before the use of the tangible personal property in British Columbia, including

(i) costs and expenses for materials, labour and other manufacturing and processing costs and expenses, and

(ii) costs and expenses for service, customs, excise and transportation;

(f.1) in relation to the purchase of a boat, the total value of the consideration that is payable by the purchaser for any property that, at or before the time that title to the boat covered by the sale passes under that sale, is, or is intended to be, attached to, stored in or used in connection with the operation of the boat, whether or not shown separately on any record of the sale or billed separately;

(g) in relation to the purchase of ready-mixed concrete that is to be delivered by or on behalf of the seller to the place where the purchaser intends to use the ready-mixed concrete, the total value of the consideration that is payable by the purchaser to have the ready-mixed concrete delivered to that place;

(h) any charge, including a royalty or licence fee, relating to

(i) the use of the tangible personal property, or

(ii) the use of knowledge required to use the tangible personal property,

whether incurred before, at or after the time that title to the tangible personal property covered by the sale passes under that sale;

(i) any charge relating to a warranty made with respect to the tangible personal property, or any charge relating to the maintenance of or service to the tangible personal property, that the purchaser must pay or agree to pay in order to obtain title to the tangible personal property covered by the sale, whether or not those charges are shown separately on any record of the sale or billed separately.

Original purchase price of certain vehicles

10.1   (1) For the purposes of paragraph (a) of the definition of "original purchase price", the purchase price of a passenger vehicle, other than a modified business vehicle or a modified motor vehicle that is a passenger vehicle, is as follows:

(a) subject to paragraphs (b) and (c), the purchase price of the passenger vehicle under section 10 [original purchase price of tangible personal property];

(b) subject to paragraph (c), if section 22 (1) [reduced purchase price] applies in respect of the purchase, the purchase price of the passenger vehicle under that section;

(c) if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the passenger vehicle under that section.

(2) For the purposes of paragraph (a.1) of the definition of "original purchase price", the purchase price of a modified business vehicle is as follows:

(a) subject to paragraphs (b) and (c), the purchase price of the modified business vehicle under section 10 [original purchase price of tangible personal property] less the portion of that purchase price that can reasonably be attributed to the modifications referred to in paragraph (b) of the definition of "modified business vehicle";

(b) subject to paragraph (c), if section 22 (1) [reduced purchase price] applies in respect of the purchase, the purchase price of the modified business vehicle under that section less the portion of that purchase price that can reasonably be attributed to the modifications referred to in paragraph (b) of the definition of "modified business vehicle";

(c) if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the modified business vehicle under that section less the portion of that purchase price that can reasonably be attributed to the modifications referred to in paragraph (b) of the definition of "modified business vehicle".

(3) For the purposes of paragraph (a.2) of the definition of "original purchase price", the purchase price of a modified motor vehicle that is a passenger vehicle is as follows:

(a) subject to paragraphs (b) and (c), the purchase price of the modified motor vehicle under section 10 [original purchase price of tangible personal property] less the portion of that purchase price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability;

(b) subject to paragraph (c), if section 22 (1) [reduced purchase price] applies in respect of the purchase, the purchase price of the modified motor vehicle under that section less the portion of that purchase price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability;

(c) if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the modified motor vehicle under that section less the portion of that purchase price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability.

Purchase price of tangible personal property related to affixed machinery and improvements to real property

11   (1) Despite sections 9 and 10, for the purposes of section 80 (2), the purchase price of tangible personal property is equal to the greater of the following:

(a) the purchase price payable by the contractor for the tangible personal property;

(b) the purchase price of the tangible personal property set out in the agreement referred to in section 79 (1) (c) or (2) (c).

(2) Despite sections 9 and 10, for the purposes of section 80.3 (2), the purchase price of tangible personal property is equal to the greater of the following:

(a) the purchase price payable by the contractor for the tangible personal property;

(b) the purchase price of the tangible personal property set out in the agreement referred to in section 80.2 (1) (d).

(3) Despite sections 9 and 10, for the purposes of section 80.6 (2), the purchase price of tangible personal property is equal to the greater of the following:

(a) the purchase price payable by the contractor for the tangible personal property;

(b) the purchase price of the tangible personal property set out in the agreement referred to in section 80.5 (6) (a).

Lease price of tangible personal property

12   For the purposes of this Act, the lease price of tangible personal property is as follows:

(a) subject to paragraphs (b) to (d), the lease price of the tangible personal property under section 13;

(b) subject to paragraphs (c) and (d), if section 22 (2) [reduced lease price] applies in respect of the lease, the lease price of the tangible personal property under that section;

(c) subject to paragraph (d), if section 23 [lease price if coupon accepted] applies in respect of the lease, the lease price of the tangible personal property under that section;

(d) if the tangible personal property is a modified motor vehicle that is leased, at the time the lease is entered into, for a period of one year or more, the lease price of the modified motor vehicle under paragraphs (a) to (c) less that portion of the price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability.

Original lease price of tangible personal property

13   (1) For the purposes of this Act, the lease price of tangible personal property is equal to the total value of the consideration accepted by the person leasing the tangible personal property to the lessee for the right to use the tangible personal property.

(2) Without limiting subsection (1), for the purposes of this Act, the lease price of tangible personal property includes the following:

(a) any payment or consideration or part of a payment or consideration that is, or is expressed to be, a licence fee or royalty fee;

(b) any payment or consideration, in addition to those made for rental periods, by a lessee to a person granting a lease for the right to use the tangible personal property, including a down payment;

(c) any payment or consideration, including a membership fee, that is in addition to payments or consideration for rental periods, a substantial benefit of which is a reduction in the lease price of the tangible personal property;

(d) any payment or consideration, or part of a payment or consideration, that is based or calculated on a measure of the use made by the lessee of the tangible personal property;

(e) if the tangible personal property is leased outside British Columbia and subsequently brought or sent into or received in British Columbia for use in British Columbia, the charges to the lessee for customs, excise, transportation, service and other similar costs incurred by the lessee before the lessee uses the tangible personal property in British Columbia;

(f) in respect of a transaction that is in part a lease of tangible personal property under which the lessee is given the right or authority to exhibit a motion picture to others, the total value of the consideration that

(i) is paid by the lessee to the person with whom the exhibitor entered into the transaction, and

(ii) is not otherwise included under this section in the lease price of the tangible personal property;

(g) any payment or consideration, or part of a payment or consideration, relating to

(i) a warranty made with respect to the tangible personal property, or

(ii) the maintenance of or service to the tangible personal property

that must be paid under the lease and that is not otherwise included under this section in the lease price of the tangible personal property.

(3) If an amount of a payment, consideration or charge referred to in subsection (1) or (2) is not attributable to a rental period under a lease, the amount is to be attributed equally across all rental periods under the lease for the purposes of the following sections:

(a) section 41 [tax if leased property used in British Columbia during rental period];

(b) section 45 [refund for leased property used outside British Columbia];

(c) section 61 [tax if sale and lease-back of conveyance];

(d) section 61.1 [tax if sale and lease-back of conveyance for which tax paid under former Act];

(e) section 62 [tax if leased conveyance used in British Columbia];

(f) section 82.01 [tax if leased property used for new purpose].

Purchase price of software

14   For the purposes of this Act, the purchase price of software is as follows:

(a) subject to paragraphs (b) to (e), the purchase price of the software under section 15;

(b) subject to paragraphs (c) to (e), if section 22 (3) [reduced purchase price] applies in respect of the purchase, the purchase price of the software under that section;

(c) subject to paragraphs (d) and (e), if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the software under that section;

(d) subject to paragraph (e), if section 26 [purchase price if bundled purchase] applies in respect of the software, the purchase price of the software under that section;

(e) if section 16 [purchase price of promotional material acquired or received by promotional distribution] applies in respect of the software, the purchase price of the software under that section.

Original purchase price of software

15   (1) For the purposes of this Act, the purchase price of software is equal to the total value of the consideration accepted by the seller or person from whom the software is acquired as the price or on account of the price of the software.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of software includes the following accepted by the seller or person from whom the software is acquired as the price or on account of the price of the software:

(a) a price in money;

(b) the value of services rendered;

(c) the value of the software or tangible personal property exchanged or acquired by the seller or person from whom the software passes as the price or on account of the price of the software covered by the sale;

(c.1) in the case of software that is repossessed, the value of the software;

(d) any charge, including a royalty or licence fee, relating to

(i) the use of the software, or

(ii) the use of knowledge required to use the software,

whether incurred before or after the time that the software is acquired;

(e) any payment or consideration or part of a payment or consideration that is, or is expressed to be, a down payment;

(f) any payment or consideration, including a membership fee, a substantial benefit of which is a reduction in the purchase price of the software;

(g) any payment or consideration, or part of a payment or consideration, that is based or calculated on a measure of the use made of the software;

(h) any charge relating to a warranty made with respect to the software, or any charge relating to the maintenance of or service to the software, that the purchaser must pay or agree to pay in order to obtain the software covered by the sale, whether or not those charges are shown separately on any record of the sale or billed separately.

Purchase price of promotional material acquired or received by promotional distribution

16   (0.1) In this section, "initial price" means the following:

(a) in relation to tangible personal property, the purchase price of the tangible personal property under section 9 (a) to (d.1);

(b) in relation to software, the purchase price of the software under section 14 (a) to (d);

(c) in relation to a telecommunication service, the purchase price of the telecommunication service under section 17 (a) to (d).

(1) For the purposes of this Act, in relation to promotional material that is to be provided by way of promotional distribution by a promotional distributor, the promotional distributor's purchase price of the promotional material is equal to the amount by which the initial price of the promotional material paid by the promotional distributor exceeds the amount of consideration specifically provided for the promotional material by the person to whom that promotional material is provided.

(2) For the purposes of this Act, in relation to promotional material that is received by way of promotional distribution, the recipient's purchase price of the promotional material is equal to the amount of any consideration specifically provided for the promotional material by the person to whom that promotional material is provided.

Purchase price of taxable service

17   For the purposes of this Act, the purchase price of a taxable service is as follows:

(a) subject to paragraphs (b) to (e), the purchase price of the taxable service under section 18 [related service], 19 [accommodation], 20 [legal services] or 21 [telecommunication service];

(b) subject to paragraphs (c) to (e), if section 22 (4) [reduced purchase price] applies in respect of the purchase, the purchase price of the taxable service under that section;

(c) subject to paragraphs (d) and (e), if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the taxable service under that section;

(d) subject to paragraph (e), if section 26 [purchase price if bundled purchase] applies in respect of the taxable service, the purchase price of the taxable service under that section;

(e) if section 16 [purchase price of telecommunication service acquired or received by promotional distribution] applies in respect of the telecommunication service, the purchase price of the telecommunication service under that section.

Original purchase price of related service

18   (1) For the purposes of this Act, the purchase price of a related service is equal to the total value of the consideration accepted by the seller of the related service or person from whom the related service is acquired as the price or on account of the price of the related service.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of a related service includes a price in money and the value of services rendered.

Original purchase price of accommodation

19   (1) For the purposes of this Act, the purchase price of accommodation is equal to the total value of the consideration accepted by the seller of the accommodation or person from whom the accommodation is acquired as the price or on account of the price of the accommodation.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of accommodation includes the following accepted by the seller of the accommodation or person from whom the accommodation is acquired as the price or on account of the price of the accommodation:

(a) a price in money;

(b) the value of services rendered.

(3) Despite subsection (1), if accommodation is purchased as part of a combination of accommodation, meals and other services purchased for a single price, for the purposes of this Act, the purchase price of the accommodation is the amount attributed to the purchase of the accommodation in accordance with the regulations.

Original purchase price of legal services

20   (1) For the purposes of this Act, the purchase price of legal services is equal to the total value of the consideration provided by the purchaser for the provision of the legal services.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of legal services includes

(a) the fees and charges, other than those prescribed as excluded,

(b) disbursements for legal research or secretarial and other support services, and

(c) other prescribed disbursements

that are billed or otherwise charged to a purchaser for or in relation to the legal services.

Original purchase price of telecommunication service

21   (1) For the purposes of this Act, the purchase price of a telecommunication service is equal to the total value of the consideration accepted by the seller or person from whom the telecommunication service is acquired as the price or on account of the price of the telecommunication service.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of a telecommunication service includes the following:

(a) sign-up charges;

(b) access charges;

(c) airtime charges;

(d) usage charges;

(e) service charges;

(f) any charge, including a royalty or licence fee, relating to

(i) the use of the telecommunication service, or

(ii) the use of knowledge required to use the telecommunication service,

whether incurred before or after the time that the telecommunication service is acquired;

(g) in respect of a transaction that is in part an acquisition of the right or authority to exhibit a motion picture to others, the total value of the consideration that

(i) is paid to the person with whom the exhibitor entered into the transaction, and

(ii) is not otherwise included under this section in the purchase price of the telecommunication service.

Reduced purchase price or lease price

22   (1) If, at or before the time of sale,

(a) a seller offers to a purchaser a reduction in the purchase price of the tangible personal property under section 9 (a), and

(b) the conditions of the reduction, if any, have been met by the purchaser,

for the purposes of this Act, the purchase price of the tangible personal property is equal to the purchase price of the tangible personal property under section 9 (a) less the amount of the reduction provided by the seller.

(2) If, at or before the time a lease is entered into,

(a) a person offers to a lessee a reduction in the original lease price of tangible personal property, and

(b) the conditions of the reduction, if any, have been met by the lessee,

for the purposes of this Act, the lease price of the tangible personal property is equal to the original lease price of the tangible personal property less the amount of the reduction provided by the person.

(3) If, at or before the time of sale,

(a) a seller offers to a purchaser a reduction in the original purchase price of software, and

(b) the conditions of the reduction, if any, have been met by the purchaser,

for the purposes of this Act, the purchase price of the software is equal to the original purchase price of the software less the amount of the reduction provided by the seller.

(4) If, at or before the time of sale,

(a) a seller offers to a purchaser a reduction in the original purchase price of a taxable service, and

(b) the conditions of the reduction, if any, have been met by the purchaser,

for the purposes of this Act, the purchase price of the taxable service is equal to the original purchase price of the taxable service less the amount of the reduction provided by the seller.

Purchase price or lease price if coupon accepted

23   (1) In this section:

"coupon" does not include a gift certificate;

"initial price" means the following:

(a) in relation to a purchase of tangible personal property, the purchase price of the tangible personal property under section 9 (a) or (b);

(b) in relation to a lease of tangible personal property, the lease price of the tangible personal property under section 12 (a) or (b);

(c) in relation to software, the purchase price of the software under section 14 (a) or (b);

(d) in relation to a taxable service, the purchase price of the taxable service under section 17 (a) or (b).

(2) If a seller or a person leasing tangible personal property to a lessee accepts, as consideration for a purchase or lease of tangible personal property or a purchase of software or a taxable service, a rebate offer or coupon that entitles the purchaser or lessee to a reduction in the price of the purchase or lease of the tangible personal property or the price of the software or taxable service equal to an amount specified in or provided for by the rebate offer or coupon, and the seller or the person leasing tangible personal property can reasonably expect to be paid an amount for the acceptance of the rebate offer or the redemption of the coupon by another person, for the purposes of this Act,

(a) the purchase price of the tangible personal property, software or taxable service is equal to the initial price of the tangible personal property, software or taxable service as if the rebate offer or coupon were not accepted, and

(b) the lease price of the tangible personal property is equal to the initial price for the lease of the tangible personal property as if the rebate offer or coupon were not accepted.

(3) Despite subsection (2), if a seller accepts, as consideration for a purchase of a motor vehicle, a rebate offer or coupon from the manufacturer of the motor vehicle that entitles the purchaser to a reduction in the price of the motor vehicle equal to an amount specified in or provided for by the rebate offer or coupon, for the purposes of this Act, the purchase price of the motor vehicle is equal to the initial price of the motor vehicle less the amount specified in or provided for by the rebate offer or coupon.

(4) If a seller or a person leasing tangible personal property to a lessee accepts, as consideration for a purchase or lease of tangible personal property or a purchase of software or a taxable service, a rebate offer or coupon that entitles the purchaser or lessee to a reduction in the price of the purchase or lease of the tangible personal property or the price of the software or taxable service equal to an amount specified in or provided for by the rebate offer or coupon, and the seller or the person leasing tangible personal property to the lessee can reasonably expect not to be paid an amount for the acceptance of the rebate offer or the redemption of the coupon by another person, for the purposes of this Act,

(a) the purchase price of the tangible personal property, software or taxable service is equal to the initial price of the tangible personal property, software or taxable service less the amount specified in or provided for by the rebate offer or coupon, and

(b) the lease price of the tangible personal property is equal to the initial price of the tangible personal property less the amount specified in or provided for by the rebate offer or coupon.

Purchase price if trade-in allowed on purchase of tangible personal property

24   (1) In this section:

"applicable tax" means a tax imposed in relation to tangible personal property under any of the following:

(a) this Act;

(b) the Consumption Tax Rebate and Transition Act;

(c) the Social Service Tax Act;

(d) section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act;

"initial price", in relation to tangible personal property, means the purchase price of the tangible personal property under section 9 (a) to (c).

(2) Subsection (3) does not apply if the tangible personal property sold or the tangible personal property accepted on account of the property sold is a multijurisdictional vehicle.

(3) If, in relation to a sale in British Columbia of tangible personal property, tangible personal property on which the purchaser has previously paid an applicable tax or that was exempt from an applicable tax is accepted at the time of sale by the seller as consideration on account of the price of the tangible personal property sold, for the purposes of this Act, the purchase price of the tangible personal property sold is the amount equal to the initial price of the tangible personal property sold less the amount of the credit allowed for the tangible personal property accepted on account of the price of the tangible personal property sold.

(4) If a motor vehicle on which a person referred to in section 49 (5) [tax if tangible personal property brought into British Columbia for use] has previously paid an applicable tax or that was exempt from an applicable tax is accepted at the time of sale of a motor vehicle to which that section applies by the seller as consideration on account of the price of the motor vehicle sold, for the purposes of section 49 (7.1) or (8), the purchase price of the motor vehicle sold is the amount equal to the initial price of the motor vehicle sold less the amount of the credit allowed for the motor vehicle accepted on account of the price of the motor vehicle sold.

Depreciated purchase price of tangible personal property

25   (1) Subject to subsection (3), this section applies in respect of prescribed tangible personal property that becomes subject to tax under any of the following sections:

(a) section 49 [tax if tangible personal property brought into British Columbia for use];

(a.1) section 50 [tax on registration of vehicle brought into British Columbia];

(b) section 51 [tax if tangible personal property brought into British Columbia for temporary use];

(b.1) section 51.1 [tax if tangible personal property no longer for temporary use];

(c) section 52 [tax if tangible personal property brought into British Columbia by non-residents];

(d) section 63 [tax if conveyance brought into and used in British Columbia];

(e) [Repealed 2013-1-151.]

(f) section 72 [tax if vehicle ceases to be multijurisdictional];

(f.1) section 72.1 [tax if transferred vehicle ceases to be multijurisdictional];

(f.2) section 80.4 [tax if change in use of tangible personal property used to improve real property];

(g) section 82 [tax if property used for new purpose];

(g.1) section 82.1 [tax on parts or material if property containing parts or material used for new purpose];

(g.2) section 82.3 [tax if change in use of vehicle, boat or aircraft exempt from tax under Consumption Tax Rebate and Transition Act];

(h) section 83 [tax if change in use of property acquired for lease];

(i) section 84 [tax if change in use of resulting tangible personal property];

(j) section 85 [tax if change in use of prototype];

(k) section 86 [tax if change in use of property for which refund received under taxation agreement].

(2) For the purposes of this Act, the purchase price of the prescribed tangible personal property to which this section applies is the greater of the following amounts:

(a) the depreciated value, determined in accordance with the regulations, of the prescribed tangible personal property,

(i) in the case of section 49, 50, 51, 52 or 63, on the entry date of the tangible personal property,

(ii) in the case of section 51.1, on the date the tangible personal property is used or allowed to be used in British Columbia for a purpose other than for temporary use,

(iii) in the case of section 72 or 72.1, on the date the vehicle is licensed for use solely within British Columbia,

(iv) in the case of section 80.4, 82, 82.1 or 82.3, on the date the tangible personal property is subsequently used or allowed to be used as referred to in section 80.4 (1) (c), 82 (1) (b), 82.1 (1) (b) or 82.3 (2) (b),

(v) in the case of section 83, on the date the tangible personal property subsequently ceases to be capitalized as lease inventory as referred to in section 83 (1) (b),

(vi) in the case of section 84, on the date the person to whom the section applies first becomes a user of the tangible personal property,

(vii) in the case of section 85, on the earliest of the following dates:

(A) the date the person to whom the section applies first becomes a user of the prototype or copy of the prototype;

(B) the date the consideration for use of the prototype or copy of the prototype is paid;

(C) the date the consideration for use of the prototype or copy of the prototype becomes due;

(viii) in the case of section 86, on the date the tangible personal property is subsequently used or allowed to be used as referred to in section 86 (1) (b);

(b) 50% of the amount that would be the purchase price of the prescribed tangible personal property but for this section.

(3) This section does not apply if the tangible personal property becomes subject to tax under section 49, 51, 51.1, 52, 63, 72, 72.1, 82, 83, 84, 85 or 86 less than 15 days after the date of purchase.

Purchase price if bundled purchase

26   (1) In this section, "initial price" means the following:

(a) in relation to a taxable component that is tangible personal property, the purchase price of the tangible personal property under section 9 (a) to (d);

(b) in relation to a taxable component that is software, the purchase price of the software under section 14 (a) to (c);

(c) in relation to a taxable component that is a taxable service, the purchase price of the taxable service under section 17 (a) to (c).

(2) Subject to section 19 (3), this section applies if a taxable component is sold or provided with a non-taxable component for a single price.

(3) Subject to subsections (4) and (6), for the purposes of this Act, the purchase price of a taxable component is equal to the fair market value of the taxable component.

(4) Subject to subsections (4.1) and (6), for the purposes of this Act, the purchase price of a taxable component is equal to the initial price accepted by the seller, or the person from whom the taxable component passes or is acquired, for all the taxable and non-taxable components sold or provided for the single price if

(a) the fair market value of the taxable component is greater than 90% of the single price and the single price is less than $500, or

(b) the non-taxable component is not ordinarily available for sale separate from the taxable component or is not ordinarily provided separate from the taxable component for a price.

(4.1) Subsection (4) (b) does not apply in relation to software if

(a) the software is the only taxable component sold or provided with a non-taxable component for a single price, and

(b) the software is provided

(i) to a purchaser as part of the purchaser's participation in a prescribed program or activity, and

(ii) only to participants of the program or activity by the person offering that program or activity.

(5) Subsection (6) applies in relation to accommodation if

(a) the accommodation is the only taxable component sold or provided with a meal for a single price, and

(b) the meal is the only non-taxable component sold or provided with that accommodation.

(6) For the purposes of this Act, the purchase price of accommodation to which this subsection applies is equal to the amount attributed to the purchase of the accommodation in accordance with the regulations.

Valuation by director

27   (1) For the purposes of subsection (2), the director may determine the fair market value of the following:

(a) tangible personal property

(i) that passes at a sale,

(ii) that is brought or sent into British Columbia,

(iii) that is delivered in British Columbia, or

(iv) to which Division 9 [Change in Use] of Part 3 applies;

(b) a lease of tangible personal property;

(c) software

(i) that passes at a sale, or

(ii) that is used in British Columbia;

(iii) [Repealed 2013-1-153.]

(d) a provision of a taxable service.

(2) If the director makes a determination under subsection (1), for the purposes of this Act, other than section 16 (2), and despite any other provision of this Act except sections 211 [appeal to minister] and 212 [appeal to court],

(a) the fair market value of the tangible personal property as determined under subsection (1) (a) of this section is deemed to be the purchase price of the tangible personal property,

(b) the fair market value of the tangible personal property as determined under subsection (1) (b) of this section is deemed to be the lease price of the tangible personal property,

(c) the fair market value of the software as determined under subsection (1) (c) of this section is deemed to be the purchase price of the software, and

(d) the fair market value of the taxable service as determined under subsection (1) (d) of this section is deemed to be the purchase price of the taxable service.

(3) For the purposes of paragraph (m) of the definition of "sale" and paragraph (a) (ix) of the definition of "use", the director may determine whether tangible personal property or a type of tangible personal property has a nominal value.

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