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B.C. Reg. 97/2013
O.C. 130/2013
Deposited March 1, 2013
effective April 1, 2013
This archived regulation consolidation is current to December 31, 2014 and includes changes enacted and in force by that date. For the most current information, click here.

Provincial Sales Tax Act

Provincial Sales Tax Exemption
and Refund Regulation

Note: Check the Cumulative Regulation Bulletin 2013 and 2014
for any non-consolidated amendments to this regulation that may be in effect.

[includes amendments up to B.C. Reg. 117/2014, June 23, 2014]

Link to Point in Time

Part 4 — Exemptions in Relation to Services

Division 1 — Services Related to Purchase

Motor vehicle conversion for individuals with disabilities

71  A purchaser to whom section 116 [tax if contract for property conversion related to purchase] of the Act applies is exempt from tax imposed under that section if the processing, fabrication, manufacturing, attachment or incorporation referred to in subsection (2) (b) of that section is solely for the purpose of

(a) modifying a motor vehicle, other than a multijurisdictional vehicle, to facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(b) equipping a motor vehicle, other than a multijurisdictional vehicle, with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability.

Motor vehicle modification for individuals with disabilities

72  A purchaser to whom section 117 [tax if contract for modification of purchased property] of the Act applies is exempt from tax imposed under that section if the modification or processing of the tangible personal property referred to in subsection (2) (b) of that section is solely for the purpose of

(a) modifying a motor vehicle, other than a multijurisdictional vehicle, to facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(b) equipping a motor vehicle, other than a multijurisdictional vehicle, with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability.

First Nation individual or band

72.1  (1) A purchaser is exempt from tax imposed under section 116 or 117 of the Act if

(a) the purchaser is a First Nation individual or a band, and

(b) the following are provided wholly on First Nation land:

(i) in the case of section 116 of the Act, the processing, fabrication, manufacturing, attachment or incorporation referred to in section 116 (2) (b) of the Act;

(ii) in the case of section 117 of the Act, the modification or processing of the tangible personal property referred to in section 117 (2) (b) of the Act.

(2) Subsection (1) of this section is prescribed for the purposes of section 145 (2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.

[en. B.C. Reg. 216/2013, App. 1, s. 11.]

Division 2 — Related Services in Relation to Tangible Personal Property

Tangible personal property for which service is exempt — general

73  (1) A related service provided in relation to the following tangible personal property is exempt from tax imposed under Division 2 of Part 5 of the Act, other than section 120.1 of that Part:

(a) tangible personal property that a person, other than a small seller, stores, keeps or retains solely for the purpose of resale;

(a.1) tangible personal property that a registrant stores, keeps or retains solely for the purpose of leasing the tangible personal property to other persons;

(b) tangible personal property that would be exempt from tax imposed under the Act if the tangible personal property were obtained on the date on which the service is provided, other than tangible personal property that would be exempt from tax under any of the provisions listed in section 57 (2) and (3) [parts] of this regulation;

(c) tangible personal property that

(i) was brought or sent into British Columbia solely for the purpose of having the particular related service and any other related service provided in respect of the tangible personal property, and

(ii) was, immediately after the particular related service and any other related service was provided, transported outside British Columbia for use outside British Columbia;

(d) an animal;

(e) a manufactured building;

(f) affixed machinery, other than

(i) travelling cranes and hoists that

(A) run on rails or tracks attached to a building, and

(B) are attached to the rails or tracks by flanged wheels, or rest on the rails or tracks by their own weight, and

(ii) affixed machinery, or parts of affixed machinery, that have been removed from the site at which they were affixed or installed;

(g) the following tangible personal property, if the tangible personal property is designed for household use:

(i) clothes dryers;

(ii) clothes washers;

(iii) curtains and draperies;

(iv) dishwashers;

(v) freezers;

(vi) ovens;

(vii) refrigerators;

(viii) rugs and carpets;

(ix) rug-cleaning and carpet-cleaning machines;

(x) sewing machines;

(xi) stoves;

(xii) vacuums;

(h) clothing and footwear, other than blades for skates;

(i) a multijurisdictional vehicle;

(j) tangible personal property that

(i) is typically attached or applied to an individual, and

(ii) is and remains attached or applied to the individual after the service is provided.

(k) Repealed. [B.C. Reg. 216/2013, App. 1, s. 12.]

(2) Subsection (1) (a), (a.1), (c) and (i) of this section is prescribed for the purposes of section 145 (2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.

(3) For the purposes of section 145 (2) of the Act, in relation to a person who alleges that a related service is exempt under subsection (1) (a) or (a.1) of this section, the collector is required to obtain

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director.

(4) For the purposes of section 145 (2) of the Act, in relation to a person who alleges that a related service is exempt under subsection (1) (i) of this section, the collector is required to obtain the account number assigned by the Insurance Corporation of British Columbia to the person in relation to the licensing of the multijurisdictional vehicle.

[am. B.C. Regs. 153/2013, s. 3; 216/2013, App. 1, s. 12 and App. 2, s. 4.]

Tangible personal property for which service is exempt — farmers

74  (1) A related service provided in relation to tangible personal property described in Schedule 2 [Tangible Personal Property for Farm Purpose] is exempt from tax imposed under Division 2 of Part 5 of the Act, other than section 120.1 of that Part, if

(a) the related service is purchased by a qualifying farmer, and

(b) the tangible personal property is to be used solely for a farm purpose.

(2) Subsection (1) of this section is prescribed for the purposes of section 145 (2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.

(3) For the purposes of section 145 (2) of the Act, in relation to a person who alleges that a related service is exempt under subsection (1) of this section, the collector is required to obtain

(a) the name, address, card number and expiry date as recorded on a BC Farmer Identity Card issued to that person by the BC Agriculture Council, or

(b) a declaration in a form acceptable to the director.

Tangible personal property for which service is exempt — commercial fishers

75  (1) A related service provided in relation to a boat, a fishing net or fishing equipment is exempt from tax imposed under Division 2 of Part 5 of the Act, other than section 120.1 of that Part, if

(a) the related service is purchased by a qualifying commercial fisher, and

(b) the boat, fishing net or fishing equipment is to be used solely for a commercial fishing purpose.

(2) Subsection (1) of this section is prescribed for the purposes of section 145 (2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.

(3) For the purposes of section 145 (2) (a) of the Act, in relation to a person who alleges that a related service is exempt under subsection (1) of this section, the collector is required to obtain a declaration in a form acceptable to the director.

Tangible personal property for which service is exempt — aquaculturists

76  (1) A related service provided in relation to tangible personal property described in Schedule 4 [Tangible Personal Property for Aquaculture Purpose] is exempt from tax imposed under Division 2 of Part 5 of the Act, other than section 120.1 of that Part, if

(a) the related service is purchased by a qualifying aquaculturist, and

(b) the tangible personal property is to be used solely for an aquaculture purpose.

(2) Subsection (1) of this section is prescribed for the purposes of section 145 (2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.

(3) For the purposes of section 145 (2) (a) of the Act, in relation to a person who alleges that a related service is exempt under subsection (1) of this section, the collector is required to obtain a declaration in a form acceptable to the director.

Services provided outside British Columbia in relation to taxable conveyance

76.1  A related service provided in relation to a taxable conveyance, as defined in section 59 of the Act, is exempt from tax imposed under section 120 [tax if related service provided outside British Columbia] of the Act.

[en. B.C. Reg. 216/2013, App. 1, s. 13.]

Exempt services

77  (1) The following related services are exempt from tax imposed under Division 2 of Part 5 of the Act, other than section 120.1 of that Part:

(a) towing of a motor vehicle;

(b) boosting of a motor vehicle battery, other than battery recharging;

(c) roadside tire changing of a motor vehicle;

(d) roadside unlocking of a motor vehicle;

(e) waxing of a motor vehicle;

(f) a service provided solely for the purpose of modifying a motor vehicle to facilitate the use of the motor vehicle by, or the transportation of, an individual using a wheelchair;

(g) a service provided solely for the purpose of equipping a motor vehicle with an auxiliary driving control to facilitate the operation of the motor vehicle by an individual with a disability;

(h) the following related services provided in relation to tangible personal property, if no other related service, other than a related service that is exempt from tax imposed under the Act, is provided in relation to the tangible personal property:

(i) diagnostic services, testing or safety inspections

(A) provided to the tangible personal property, or

(B) to provide an estimate for related services to the tangible personal property;

(ii) dismantling and any reassembly of the tangible personal property, if the dismantling and any reassembly are provided solely for the purpose of providing

(A) diagnostic services, testing or safety inspections to the tangible personal property, or

(B) an estimate for related services to the tangible personal property;

(i) services to inspect, repair or replace tangible personal property as a result of a recall of the tangible personal property by its manufacturer, if the services are purchased by the manufacturer;

(j) services to inspect, repair or replace tangible personal property under a warranty for which

(i) the purchaser of the tangible personal property paid or agreed to pay a charge described in section 10 (2) (i) of the Act, or

(ii) the lessee of the tangible personal property made a payment or provided consideration described in section 13 (2) (g) of the Act,

if the services are purchased by the person who provided the warranty;

(k) services to inspect, repair or replace tangible personal property for which

(i) the purchaser of the tangible personal property paid or agreed to pay a charge described in section 10 (2) (i) of the Act relating to the maintenance of or service to the tangible personal property, or

(ii) the lessee of the tangible personal property made a payment or provided consideration described in section 13 (2) (g) of the Act relating to the maintenance of or service to the tangible personal property.

(2) The following related services are exempt from tax imposed under Division 2 of Part 5 of the Act, other than section 120.1 of that Part:

(a) attaching or applying tangible personal property to or removing tangible personal property from an individual;

(b) services that are provided to an electronic device and that consist of

(i) installing software on the electronic device,

(ii) removing software or data from the electronic device,

(iii) relocating, modifying or copying software or data on the electronic device, or

(iv) installing data on the electronic device, if the purpose of the installation is to back up data installed on another electronic device;

(c) installing tangible personal property as part of a window display service;

(d) erecting, constructing or assembling the following tangible personal property, if the tangible personal property is for use in the construction, demolition, adjustment, repair, renovation, restoration or maintenance of real property or affixed machinery:

(i) scaffolding, formwork, hoarding or other temporary protective coverings;

(ii) construction cranes;

(iii) temporary power or other utilities;

(e) dismantling tangible personal property described in paragraph (d) (i), (ii) or (iii), if the tangible personal property was used in the construction, demolition, adjustment, repair, renovation, restoration or maintenance of real property or affixed machinery;

(f) cleaning services provided in relation to tangible personal property, if no other related service, other than a related service that is exempt from tax imposed under the Act, is provided in relation to the tangible personal property;

(g) moving services;

(h) courier and mail services;

(i) freight transportation services;

(j) disposal services;

(k) services that measure, weigh, grade or classify tangible personal property, if no other related service, other than a related service that is exempt from tax imposed under the Act, is provided in relation to the tangible personal property;

(l) engraving services;

(m) packaging tangible personal property;

(n) numbering pages, collating pages and folding pages;

(o) cutting tangible personal property, other than cutting that is part or all of a service to repair, restore or recondition the tangible personal property, and only if no other related service, other than a related service that is exempt from tax imposed under the Act, is provided in relation to the tangible personal property;

(p) services purchased by a corporation from a related corporation within the meaning of section 148 [definitions and interpretation for Part 9] of this regulation;

(q) services that are

(i) purchased by a First Nation individual or a band, and

(ii) provided wholly on First Nation land;

(r) services provided to grow plants if the service is provided at a location other than on property owned, leased or used by the owner of the plants.

(3) Subsection (2) (q) of this section is prescribed for the purposes of section 145 (2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.

[am. B.C. Reg. 216/2013, App. 1, s. 14 and App. 2, s. 5.]

Division 3 — Accommodation

Exemptions in relation to accommodation

78  (1) The following accommodation is exempt from tax imposed under Division 3 of Part 5 of the Act:

(a) accommodation for which the charge for the unit of accommodation is $30 or less per day, or $210 or less per week;

(b) accommodation that is provided by a person who offers fewer than 4 units of accommodation;

(c) accommodation that is provided in a unit of accommodation to

(i) an individual, other than a tourism agent, if the unit is occupied for a continuous period of more than one month by

(A) the individual,

(B) the individual's employees,

(C) members of the individual's family, or

(D) members of the individual's employees' families,

(ii) a person, other than an individual or a tourism agent, if the unit is occupied for a continuous period of more than one month by

(A) the person's employees, or

(B) members of the person's employees' families, or

(iii) a tourism agent, if the unit is occupied for a continuous period of more than one month by the same customer of the tourism agent;

(d) accommodation that is

(i) purchased by a First Nation individual or a band, and

(ii) provided wholly on First Nation land;

(e) accommodation that is provided in premises normally operated by or on behalf of an employer to provide lodging to the employer's employees, if the accommodation is purchased by an employee of the employer;

(f) accommodation that is provided

(i) to an employee of an employer or another person engaged by the employer, and

(ii) in a bunk house, trailer or other dwelling that is operated at an industrial camp

(A) by or on behalf of the employer or under a contract with the employer, and

(B) solely for the purpose of providing lodging substantially to the employees of the employer or other persons engaged by the employer

during periods when those employees or persons are performing work or services for the employer;

(g) accommodation that is provided

(i) by a religious or charitable organization, and

(ii) at a summer camp or similar place;

(h) accommodation that is provided without any of the following:

(i) bed linen;

(ii) heat, other than a wood-burning fireplace or wood-burning stove;

(iii) electricity;

(iv) indoor plumbing;

(i) accommodation that is provided in tents.

(2) Subsection (1) (d) of this section is prescribed for the purposes of section 145 (2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.

[am. B.C. Reg. 216/2013, App. 2, s. 6.]

Division 4 — Legal Services

Definitions

79  In this Division:

"law firm" has the same meaning as in the Legal Profession Act;

"notary firm" means a legal entity or combination of legal entities providing services described in section 18 of the Notaries Act.

Legal services provided under contract

80  Legal services are exempt from tax imposed under Division 4 of Part 5 of the Act if

(a) the legal services are provided to a lawyer, law firm, notary or notary firm by

(i) an individual who provides legal services only to the lawyer, law firm, notary or notary firm, but who is not an employee of the lawyer, law firm, notary or notary firm for the purposes of the Income Tax Act (Canada), or

(ii) a law firm or notary firm that provides legal services only to the lawyer, law firm, notary or notary firm,

(b) the legal services are provided only in respect of a particular client of the lawyer, law firm, notary or notary firm, and

(c) the purchase price to the lawyer, law firm, notary or notary firm for the legal services is to be included in the purchase price of legal services billed or otherwise charged to the client by the lawyer, law firm, notary or notary firm.

[en. B.C. Reg. 216/2013, App. 1, s. 15.]

Legal services provided to First Nation individuals

81  (1) The following are exempt from tax imposed under Division 4 of Part 5 of the Act:

(a) legal services purchased by a First Nation individual or a band, if the legal services

(i) relate to real property situated on First Nation land, or

(ii) are performed on First Nation land;

(b) legal services purchased by an aboriginal organization representing the interests of Indians and bands, if the legal services relate to any of the following:

(i) aboriginal treaty or land claims negotiations;

(ii) consultations with the government or the government of Canada in relation to aboriginal rights or aboriginal title;

(iii) negotiations with the government or the government of Canada in relation to interim agreements that relate to aboriginal rights or aboriginal title;

(iv) negotiations that relate to existing treaties or treaty rights;

(v) negotiations with other aboriginal organizations in relation to overlapping treaty or land claims.

(2) Subsection (1) of this section is prescribed for the purposes of section 145 (2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.

[am. B.C. Reg. 216/2013, App. 2, s. 7.]

Legal services provided to corporations

82  A corporation is exempt from tax imposed under Division 4 of Part 5 of the Act in relation to legal services provided to that corporation by an employee of a related corporation within the meaning of section 148 [definitions and interpretation for Part 9] of this regulation.

Division 5 — Telecommunication Services

Telephone and communication services

83  (1) In this section, "public switched telephone network" means a telecommunication facility, the primary purpose of which is to provide, for compensation, a landline-based telephone service to the public.

(2) The following are exempt from tax imposed under Division 5 of Part 5 of the Act:

(a) a telecommunication service in the form of a toll-free number, other than if the telecommunication service is

(i) acquired for family or domestic use, or

(ii) a teleconference service.

(b) a telecommunication service that is purchased by

(i) the government,

(ii) an agent of the government,

(iii) a regional district,

(iv) a municipality,

(v) a fire department,

(vi) a police department,

(vii) the South Coast British Columbia Transportation Authority,

(viii) the Victoria Airport Authority,

(ix) the British Columbia Ambulance Service,

(x) British Columbia Emergency Health Services,

(xi) British Columbia Transit, or

(xii) the University of Victoria

in respect of its emergency communications systems from

(xiii) E-Comm Emergency Communications for Southwest British Columbia Incorporated, or

(xiv) the Capital Region Emergency Service Telecommunications Incorporated (CREST);

(c) conventional paging services that allow a person to receive, but not to send, telecommunications by means of a pager;

(d) subject to subsection (3), residential telephone services provided to a purchaser by means of a wire or cable and through a public switched telephone network.

(3) The exemption under subsection (2) (d) does not apply to the following:

(a) long distance telephone services;

(b) telephone services provided to a purchaser by means of the internet.

[am. B.C. Regs. 145/2013, App. 2, s. 13; 216/2013, App. 1, s. 16.]

Cable television services

84  (1) In this section, "basic cable television services" means the minimum level of television services that a purchaser must purchase from a provider of television services to receive any television services from that provider.

(2) Subject to subsection (3), basic cable television services provided to a purchaser by means of a wire or cable are exempt from tax imposed under Division 5 of Part 5 of the Act.

(3) The exemption under subsection (2) does not apply to television services provided to a purchaser by means of satellite or the internet.

Education programs

85  A telecommunication service that is provided to a purchaser as part of the purchaser's participation in any of the following programs or activities and is provided only to participants of the program or activity by the person offering that program or activity is exempt from tax imposed under Division 5 of Part 5 of the Act:

(a) an educational program provided by a qualifying school or other educational institution;

(b) a training or instructional program designed to develop or improve the knowledge, skills or abilities needed by individuals for a particular trade, occupation or profession;

(c) a lecture, presentation, seminar, workshop or similar activity designed for educational purposes, if the participants in the activity and the presenter or instructor utilize a telecommunication system to send and receive telecommunications with each other in real time.

[am. B.C. Reg. 216/2013, App. 1, s. 17.]

Photographers

86  A purchaser is exempt from tax imposed under Division 5 of Part 5 of the Act in respect of a telecommunication service if

(a) the purchaser purchases the telecommunication service from a person who produced a video specifically for the purchaser under a contract with that purchaser,

(b) the telecommunication service is a telecommunication service described in paragraph (d) of the definition of "telecommunication service" in section 1 [definitions] of the Act in respect of the video referred to in paragraph (a) of this section, and

(c) the purchaser does not obtain the video, or copies of the video, referred to in paragraph (a) in the form of tangible personal property.

[am. B.C. Reg. 216/2013, App. 1, s. 18.]

Data back-up services

87  A telecommunication service that is provided to a purchaser for the purpose of backing up the purchaser's data that is installed on an electronic device is exempt from tax imposed under Division 5 of Part 5 of the Act.

Telecommunication service in relation to purchase
of accommodation

88  A purchaser is exempt from tax imposed under Division 5 of Part 5 of the Act in respect of a telecommunication service if

(a) the purchaser purchases the telecommunication service from a provider of accommodation, and

(b) the telecommunication service is in relation to a purchase of accommodation in British Columbia.

Telecommunication service purchased by First Nation individual or band

88.1  (1) A telecommunication service is exempt from tax imposed under Division 5 of Part 5 of the Act if

(a) the telecommunication service is purchased by a First Nation individual or a band, and

(b) the electronic device is

(i) owned or leased by the First Nation individual or band, and

(ii) ordinarily situated on First Nation land.

(2) Subsection (1) of this section is prescribed for the purposes of section 145 (2) [evidence required to claim certain exemptions in relation to taxable services] of the Act.

[en. B.C. Reg. 216/2013, App. 1, s. 19.]

Division 6 — Evidence Relating to Exemptions under Act
in Respect of Services

Evidence relating to exemptions under section 130 (3) of Act

89  For the purposes of section 130 (3) [evidence required to claim exemption in relation to telecommunication services] of the Act, in relation to a person who alleges that a telecommunication service is exempt under section 134 [exemption if telecommunication service purchased for resale] of the Act, the collector is required to obtain

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director.

Contents | Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Schedule 1 | Schedule 2 | Schedule 3 | Schedule 4 | Schedule 5