In this document you can find information on how the PST applies to rented passenger vehicles, as well as the passenger vehicle rental tax(PVRT). Also, you can find out that the PST rate constitutes 7-10% and applies to all rented passenger vehicles, including the ones rented before April 1, 2013.

Definition of Passenger Vehicles

Motor vehicles that were initially designed for transportation of individuals are considered as passenger vehicles if their weight doesn't exceed three-quarter ton. If a vehicle is larger than that and has engine of 250 cc or less, it can't be considered as passenger vehicle.

When the PST Payment Becomes Due

A person should pay the PST on the rent of vehicles when either the payment becomes due, or it is paid before that time.

Transitional Rules for Rened Vehicles

If a vehicle is rented on the territory of BC for business or personal purposes, it is subject to PST. According to common transitional rule a person who rents vehicle in BC should pay the PST only on or after April 1, 2013.

Pay attention to the fact, that cost of the PST for passenger vehicles constitutes 7-10%.

Vehicles Rented outside of BC

Vehicles that were rented outside of BC but brought or sent there for business or personal purposes are subject to the PST under the following conditions: if it was brought by resident of BC with the purpose of personal use or for the use of other people; if a vehicle that was brought has a registration for use in BC; if non-resident who owns or rents some kind of property in BC brought it; if it was brought with business purpose.

The PST applies to the rented vehicles that were transported to BC on or after April 1, 2013. It also applied to vehicles that were transported before April 1, 2013 if the end of rental period is after April 1, 2013 or if rental payment is due on or after that date.

Rent of Motor Vehicles

If a motor vehicle is rented for the time period of over 28 days and the renting person lives outside of BC it is subject to PST under the condition that the vehicle is registered for use on the territory of BC. In case if vehicle is rented outside of the territory of BC and then brought there but not immediately registered for use, rental payments that are due to the date before registration are subject to PST.

The P ST should be paid on the day of registration of a vehicle on the territory of BC. Amount of PST payment equals fair market value of the vehicle. In case of further cancellation of registration a person can apply for a refund.

Cost of PST for Rented Vehicles

Cost of the PST for vehicles that are non-passenger vehicles constitutes 7% of their rental price or their taxable value (for vehicles brought from outside of the territory of BC).

Cost of PST for passenger vehicles rented on the territory of BC varies from 7 to 10% depending on their fair market value.

PVRT

Cost of the PVRT constitutes $1,50 per day and applies to passenger vehicles that are rented on the territory of BC for the time period of not more than 8 subsequent hours or 28 subsequent days.