B.C. Tax Alert - September 18, 2020

On Thursday, September 17, 2020, the Government of B.C. announced a B.C. Provincial Sales Tax (PST) Rebate for select machinery and equipment.

When an incorporated business purchases or leases certain machinery and equipment between September 17, 2020 and September 30, 2021, they may be eligible for a rebate of 100 percent of B.C. PST paid. Please note that certain entities are excluded from eligibility, such as crown corporations, charities, schools, and hospitals.

The machinery and equipment that qualify for the rebate must be:

1. found in Schedule II to the federal Income Tax Regulations for CCA classes 8, 10, 12, 16, 43, 43.1, 43.2, 46, 50, 53, 54, and 55;
2. obtained substantially (90 percent plus+) for the purpose of gaining or producing income; and
3. not excluded (see below).

CCA classes covered by the rebate include, but are not limited to:

• machinery and equipment, tools, appliances and furniture;
• computer hardware and software;
• electric vehicle charging stations; and
• zero-emission vehicles.

Software and goods (other than goods obtained by lease) must be capital assets for the rebate to apply.

The following goods are excluded from the rebate:

1. vehicles, with the exception of zero-emissions vehicles;
2. goods that will be installed as an improvement to real property;
3. goods purchased for resale by a small seller; and
4. exclusive products purchased by independent sales contractors.

Incorporated businesses may make up to two PST rebate applications: the first application can be made between April 1, 2021 and September 30, 2021. The second application can be made starting October 1, 2021. The last day applications will be accepted is March 31, 2022, which is six months after the rebate period ends on September 30, 2021.

Detailed information is not yet available but will be released prior to the application process opening. For more information, please contact your MNP Indirect Tax Advisor.

Our B.C. Indirect Tax Team

Heather Weber, CPA, CGA
Indirect Tax Services Leader
250.979.2575
[email protected]

Angela Chang, CPA, CGA
Partner, Indirect Tax Services
778.374.2121
[email protected]

Norma Orellana, CPA, CGA
Senior Manager, Indirect Tax Services
604.949.2116
[email protected] 

Edward Chow, CPA, CGA
Manager, Indirect Tax Services
778.372.5365
[email protected]