Registration in the ministry is obligatory to be able to collect and remit tax if a seller sells legal, telecommunication services, accommodation, software and services related to it and do not qualify as a small seller. If he does, then registration at the ministry is optional for him. If he decides to register at the ministry, he will be responsible for paying and collecting PST and will not be regarded as small seller any more.

Goods Services and Software That Is Subject to PST

According to this document such goods as liquor and vehicles, software and services related to it, and also legal and telecommunication services are subject to PST.

Definition of Small Seller

A person can be defined as a small seller if: he sells goods on the territory of BC but does not own a shop; he is a seller of goods, services or software that is subject to PST; he has special occasion license to sell liquor or vehicles; gross revenue of a seller for the past 12 subsequent months is not more than $10,000; he is not a lessor or independent sales contractor; he does not sell realty on a regular basis.

A person can't be considered as a small seller if he sells goods, services and software on a regular basis and has a set business or commercial premise for that, but his revenue is less than $10,000 for the period 12 months.

What Is a Set Commercial and Business Premise?

A place, where customers buy goods, services or software from a seller is called a set commercial premise. A recognized place that is used for general business activities of a seller is called a set business premise.

How to Calculate Gross Revenue?

To do this a seller has to calculate his retail sales of all taxable and exempt goods, services and software for the time period of 12 subsequent months. It does not matter if sales took place outside BC or even outside of Canada. If gross revenue of a seller is more than $10,000 at any period of time within 12 subsequent months, he has to register for PST.

How to cancel existing PST registration?

A seller can cancel existing PST registration in the following cases: a seller has collected and remitted PST for one year minimum; the gross revenue of a seller for the time period of 12 subsequent months totals less than $10,000; estimated amount of seller's gross revenue for the next 12 months is not more than $10,000; a seller meets all requirements to qualify as a small seller. After a seller's application to cancel a PST registration is approved he becomes a small seller.

Obligations of Small Seller

If a person can be considered as a small seller, he should know the following requirements:

Regarding the goods, services and software. A seller should not charge PST from his customers (include it into bill etc.). If he does, he has to remit this amount to the ministry. A seller must not return it directly to the customer. To get a refund customer should go to the ministry.

Regarding liquors and vehicles. In this case, a person who made a purchase is to pay tax.

Exemptions from PST for Small Sellers

The exemptions listed below don't apply to the small sellers. If seller chooses to register with the ministry the following exemptions apply to him:

If seller buys goods for resale purposes, he must pay PST to the supplier.

Seller must pay PST on the purchase of goods or software that is going to be incorporated (built into, processed etc.) into other goods he is going to sell.

Seller must pay PST on the purchase of labels or packaging materials that he is going to use for his goods.

Seller must pay PST on parts that he used to provide services for goods sold by him.