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This Act is current to October 31, 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 2 — When Tax Is Payable

When tax is payable in respect of a purchase or lease

28   (1) In this section, "relevant provision" means any of the following:

(a) section 37 [tax on purchase], except in relation to tax imposed under section 37 in accordance with section 88 [tax if leased tangible personal property becomes part of real property];

(b) section 39 [tax on leases];

(c) section 43 [additional tax on lease of passenger vehicle];

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

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

(f) section 80 [tax on tangible personal property used to improve real property if contractor exempt];

(f.1) section 89 [tax on acquisition of eligible tangible personal property];

(g) section 92 [tax on purchase of energy product];

(h) section 93 [tax if energy product brought into British Columbia for use];

(h.1) section 98 (1) [liquor sold under liquor permit];

(i) section 99 (1), (2) or (3) [tax on acquisition of exclusive product by independent sales contractor];

(j) section 101 [tax on reusable containers];

(k) section 105 [tax on software];

(l) [Repealed 2013-1-154.]

(l.1) section 112 [tax on purchase of software by small seller];

(m) section 116 [tax if contract for property conversion related to purchase];

(n) section 117 [tax if contract for modification of purchased property];

(o) section 119 [tax on purchase of related service provided in British Columbia];

(p) section 122 [tax on accommodation];

(q) section 123 [tax on accommodation in designated accommodation area];

(r) section 126 [tax if legal services provided in British Columbia];

(s) section 127 [tax if legal services provided to British Columbia resident];

(t) section 130 [tax on telecommunication service];

(u) section 131 [tax on dedicated telecommunication service].

(2) Subject to sections 29 and 30, this section applies to tax imposed under a relevant provision.

(3) Tax imposed under a relevant provision is payable on the earlier of

(a) the day the consideration for the purchase or lease of tangible personal property or for the purchase of the software or taxable service is paid, and

(b) the day the consideration for the purchase or lease of tangible personal property or for the purchase of the software or taxable service becomes due.

(4) Despite subsection (3), if the consideration for a purchase or lease of tangible personal property or for a purchase of software or a taxable service is paid or becomes due on more than one day,

(a) tax under a relevant provision in respect of the purchase or lease of the tangible personal property or the purchase of the software or taxable service is payable on each day that is the earlier of the day a portion of the consideration is paid and the day that portion becomes due, and

(b) the tax that is payable on each day under paragraph (a) is to be calculated on the portion of the purchase price or lease price that is attributable to the portion of the consideration that is paid or becomes due, as applicable, on that day.

(5) Despite subsections (3) and (4), if all or any portion of the consideration for a purchase of tangible personal property has neither been paid nor become due on or before the last day of the month immediately following the first month in which,

(a) in relation to a purchase of tangible personal property by way of sale, other than a purchase described in paragraph (b), the ownership or possession of the tangible personal property is transferred to the purchaser, or

(b) in relation to a purchase of tangible personal property by way of sale under which the seller delivers the tangible personal property to the purchaser on approval, consignment, sale-or-return basis or other similar terms, the purchaser acquires ownership of the tangible personal property or makes the tangible personal property available to any person, other than the seller,

tax under a relevant provision in respect of the purchase of the tangible personal property, calculated on the value of that consideration or portion, as applicable, is payable on that day.

(6) Subsection (5) does not apply in respect of a purchase of tangible personal property if the tangible personal property is delivered or made available to the purchaser on a continuous basis by means of a wire, pipeline or other conduit and the seller invoices the purchaser in respect of that purchase on a regular or periodic basis.

(7) If under subsection (5) tax is payable on a day and the purchase price, or any portion of the purchase price, for the purchase of the tangible personal property is not ascertainable on that day,

(a) tax calculated on the purchase price or portion, as applicable, that is ascertainable on that day is payable on that day, and

(b) tax calculated on the purchase price or portion, as applicable, that is not ascertainable on that day is payable on the day the purchase price or portion becomes ascertainable.

(8) Despite subsections (3) to (5) and (7), if a purchaser or lessee of tangible personal property or a purchaser of software or a taxable service retains, under

(a) a law of Canada, British Columbia or another province, or

(b) an agreement in writing for the construction, renovation, alteration or repair of any real property or any ship or other marine vessel,

a portion of the consideration for the purchase or lease of the tangible personal property or the purchase of the software or taxable service pending full and satisfactory performance, or any part thereof, tax under a relevant provision, calculated on the purchase price or lease price that is attributable to that portion of the consideration, is payable on the earlier of the day that portion of that consideration is paid and the day that portion of that consideration becomes payable.

(9) Subject to subsection (10), for the purposes of this section, a deposit, whether refundable or not, given in respect of a purchase or lease of tangible personal property or a purchase of software or a taxable service is not consideration paid for the purchase or lease of the tangible personal property or the purchase of the software or taxable service unless and until the seller or lessor applies the deposit as consideration for that purchase or lease.

(10) For the purposes of this section, a deposit, whether refundable or not, given in respect of a purchase of a reusable container is not consideration paid for the purchase of the reusable container.

When tax is payable if tax not collected when consideration is paid or becomes due

29   (1) In this section, "relevant provision" has the same meaning as in section 28.

(2) Subject to section 30, if a person must pay tax imposed under a relevant provision and the tax is not levied in accordance with section 179 (1) [collection and remittance of tax by collector],

(a) the person who must pay the tax must file a taxpayer return with the director, and

(b) subject to subsection (3), the tax is payable on the last day of the month after the month in which the tax would otherwise be payable under section 28.

(3) If subsection (2) applies to a person who must pay tax imposed under section 49 [tax if tangible personal property brought into British Columbia for use], 52 [tax if tangible personal property brought into British Columbia by non-residents], 93 [tax if energy product brought into British Columbia for use] or 101 (2) [tax on reusable containers], the tax payable under section 49, 52, 93 or 101 (2) must be paid on or before the last day of the month after the month that includes the entry date of that tangible personal property.

(4) Despite subsections (2) and (3) but subject to section 30, if a registrant must pay tax imposed under a relevant provision and the tax is not levied in accordance with section 179 (1), the tax is payable on or before the prescribed date.

(5) Subject to section 30 (5), tax payable under a relevant provision by a registrant must be paid in the prescribed manner if the tax is not levied in accordance with section 179.

When tax is payable in respect of vehicles

30   (1) Subsection (1.1) applies in relation to tax imposed in respect of a vehicle under

(a) section 37 [tax on purchase], 49 [tax if tangible personal property brought into British Columbia for use] or 52 [tax if tangible personal property brought into British Columbia by non-residents] if the tax is not levied in accordance with section 179 (1) [collection and remittance of tax by collector], or

(b) section 100 (1) [tax on gift of vehicle, boat or aircraft given in British Columbia] if the tax is not levied in accordance with section 179 (1.3).

(1.1) Tax imposed in respect of a vehicle to which this subsection applies is payable at or before, or on or before, the earliest of the following:

(a) the time that an application is made for the registration of the vehicle under the vehicle registration legislation;

(b) if the tax is payable by a person who is not a registrant, the last day of the month after the month,

(i) in the case of section 37, in which the vehicle is purchased at a sale in British Columbia,

(ii) in the case of section 49 or 52, that includes the entry date of the vehicle, and

(iii) in the case of section 100 (1), in which the person receives the gift of the vehicle;

(c) if the tax is payable by a registrant, on or before the prescribed date.

(2) Tax imposed under section 40 [tax on motor vehicle leased outside British Columbia and registered for use in British Columbia], 50 [tax on registration of vehicle brought into British Columbia] or 100 (1.3) [tax on gift of vehicle, boat or aircraft given in British Columbia] is payable at the time that an application is made for the registration of the vehicle under the vehicle registration legislation.

(3) If a person must pay tax imposed under section 37, 40, 49, 50, 52 or 100 in respect of a vehicle and, under subsection (1.1) (a) or (2) of this section, the tax is payable at the time that an application is made for the registration of the vehicle under the vehicle registration legislation, the person must

(a) pay the tax to the Insurance Corporation of British Columbia, and

(b) provide to the Insurance Corporation of British Columbia information in a form acceptable to the director.

(4) If a person must pay tax imposed under section 37, 49, 52 or 100 in respect of a vehicle and the tax is payable in accordance with subsection (1.1) (b) of this section, the person must file a taxpayer return with the director.

(5) Tax payable under section 37, 49, 52 or 100 (1) by a registrant must be paid in the prescribed manner if the tax is not levied in accordance with section 179.

(6) Subsection (7) applies in relation to a person who must pay tax imposed under section 37, 49, 50, 52 or 100 in respect of a vehicle if the person alleges

(a) that the tax has been levied in accordance with section 179 in respect of the vehicle,

(b) that the tax has been paid in accordance with subsection (1.1) (b) of this section, or

(c) that the person is exempt from paying tax imposed under those sections.

(7) If this subsection applies in relation to a person described in subsection (6), the Insurance Corporation of British Columbia must nevertheless levy and collect the tax unless the Insurance Corporation of British Columbia obtains from that person, at or before the time the tax is payable,

(a) a declaration in a form acceptable to the director, if required by the regulations,

(b) any information or document required by the regulations, and

(c) any information or document required by the director.

When tax is payable in respect of gifts of vehicles, boats or aircraft

31   (1) Subject to subsection (2) and section 30, if a collector gives a gift of a vehicle, boat or aircraft and the person who receives the gift must pay tax imposed under section 100 (1) in respect of that gift, the tax is payable at the time the person receives the gift.

(2) If a person must pay tax imposed under section 100 in respect of a gift of a boat or aircraft and the tax is not levied in accordance with section 179 (1.3) [collection and remittance of tax by collector],

(a) the tax is payable on the last day of the month after the month in which the person receives the gift of the boat or aircraft, and

(b) the person must file a taxpayer return with the director.

(3) Despite subsection (2), tax payable under section 100 by a registrant in respect of a gift of a boat or aircraft must be paid on or before the prescribed date and in the prescribed manner.

Tax payment agreements in relation to tangible personal property and software

32   (1) The director may, in the circumstances established by the regulations,

(a) enter into an agreement with a person who is liable to pay tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] or Part 4 [Taxes in Relation to Software], relating to the manner in which the tax is to be paid to the government, or

(b) enter into an agreement with a person

(i) who owns or operates a commercial rail service that offers, to members of the public for a fee, interprovincial or international rail transportation of passengers or goods, and

(ii) who is liable to pay tax imposed under

(A) section 116 [tax if contract for property conversion related to purchase],

(B) section 117 [tax if contract for modification of purchased property], or

(C) Division 2 [Related Services in Relation to Tangible Personal Property] of Part 5,

relating to the manner in which the tax is to be paid to the government.

(2) An agreement referred to in subsection (1) is subject to subsection (7) and the conditions established in the regulations.

(3) An agreement referred to in subsection (1) must provide for the types of tangible personal property, software or eligible taxable service to which the agreement applies and must provide for one or both of the following:

(a) subject to the regulations, the circumstances in which the person liable to pay tax must pay the tax directly to the government, instead of paying the tax to a collector in relation to

(i) a delivery in British Columbia, or a purchase or lease, of tangible personal property to which the agreement applies, or

(ii) a purchase of software or an eligible taxable service to which the agreement applies;

(b) the circumstances in which the person liable to pay tax must pay the tax on or before a date that is different from the date that the tax would otherwise be payable under this Act.

(4) Despite anything in this Act, an agreement referred to in subsection (1) may provide for the following:

(a) for the manner in which interest is calculated;

(b) for payments that are based on formulas or estimates referred to in the agreement;

(c) for such other terms and conditions that the director considers necessary or advisable for the efficient administration of this Act.

(5) If an agreement referred to in subsection (1) is entered into, despite anything in this Act but subject to the regulations and to the agreement, the person liable to pay tax must pay the tax, on or before the prescribed date and in the prescribed manner, directly to the government in relation to the tangible personal property, software or eligible taxable service to which the agreement applies.

(6) If an agreement referred to in subsection (1) is entered into, subject to the regulations, the collector is relieved of the obligation to levy and collect the tax.

(7) The director may terminate the agreement referred to in subsection (1) if the director is satisfied that the person who entered into the agreement with the director has failed to comply with this Act, the regulations or a term or condition of the agreement.

When consideration becomes due

33   (1) For the purposes of this Act, all or a portion of the consideration for a purchase or lease of tangible personal property or for a purchase of software or a taxable service becomes due on the earliest of the following:

(a) the earlier of

(i) the day the seller of the tangible personal property, software or taxable service, or the person from whom the tangible personal property is leased, first issues an invoice in respect of the sale or lease for that consideration or portion of that consideration, and

(ii) the date of the invoice;

(b) the day the seller of the tangible personal property, software or taxable service, or the person from whom the tangible personal property is leased, would have, but for an undue delay, issued an invoice in respect of the sale or lease for that consideration or portion of that consideration;

(c) the day the purchaser or lessee is required under a written agreement to pay that consideration or portion of that consideration to the seller of the tangible personal property, software or taxable service or to the person from whom the tangible personal property is leased.

(2) Despite subsection (1), if tangible personal property, software or a taxable service is supplied by means of a lease, licence or similar arrangement under a written agreement, for the purposes of this Act, all or a portion of the consideration for the property, software or service becomes due on the day the purchaser or lessee is required under the agreement to pay the consideration or portion of the consideration to the seller or the person from whom the tangible personal property is leased.

(3) For the purposes of this Act, if consideration that is not money is given or required to be given,

(a) the consideration that is given is deemed to be paid, and

(b) the consideration that is required to be given is deemed to be required to be paid.

Contents | Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15