Effective April 1, 2013 all vehicles purchased, rented or received as a present on the territory of BC (or brought on it) are subject to the PST. It doesn't matter is the purpose of use is personal or business. Cost of the PST varies from 7% to 12%.

Buying a Vehicle at a Private Sale

All buyers, who purchased their vehicles at a private sale on or after April 1, 2013 have to pay PST at the rate of 12%. If a vehicle was registered for use after April 1, 2013, but a purchase was made in the time period between July 1, 2010 and April 1, it is subject to PST.

Buying a Vehicle from a Dealer

If a person buys a vehicle from automotive dealer on or after April 1, 2013, such vehicles are subject to the PST. Cost of the PST constitutes 7% for non-passenger vehicles and 7 to 10% for passenger vehicles.

Vehicles Rented on the Territory of BC

PST is payable on a rental price of a vehicle if it was rented on or after April 1, 2013.

In case if a vehicle was registered on the territory of BC but used outside of it for over 28 days, PST is payable on the market value of a vehicle.

Vehicles Purchased Outside of the Territory of BC

A vehicle purchased outside of BC by a person who lives or runs a business on the territory of BC (or has intention to do so), the PST applies to it. If a purchase was made on the territory of Canada, but outside of BC, the PST rate constitutes 12%. If a vehicle was acquired outside of Canada, the PST rate is 7-10% (it depends on the cost of a vehicle).

Granted Vehicles

If a vehicle is granted to a person on or after April 1, 2013, it is subject to PST. Cost of the PST for granted vehicles varies from 7% to 12% and applies to the fair market value of a vehicle.

Modified Vehicles

A vehicle that was purchased, rented or brought on the territory of BC and was changed by means of adding some equipment that made it useful for business is considered as modified business vehicle. The PST rate for such type of vehicles constitute 7-10% depending on its cost (fair market value).

Who Pays the PST?

If seller of a vehicle is registered in the ministry to collect the PST, he is responsible for paying it. Otherwise a buyer has to pay the PST as soon as he registers it with ICBS. It applies to vehicles bought, granted and brought from outside of BC.

Documentation for Registration of a Vehicle

At the PST was paid before the moment of registration of the vehicle in the ministry, the owner must provide documents confirming that the PST was already paid. If he fails to do so, the PST will be charged from him.

If a person is eligible for exclusion, he must provide documental proof of this fact. If a person is unable to show such proof at the moment of registration, he can apply for a refund later, when he provides appropriate documentation to the ministry.

Also, at the time of registration it will be required to provide a paper showing the price at what price the vehicle was acquired.