BC PST Rebate Overview

The Province of British Columbia announced that they will be offering a PST rebate on purchased or leased machinery and equipment for eligible incorporated businesses. Approved corporations will receive an amount equal to the PST paid between September 17, 2020 and September 30, 2021.

In order to qualify for the rebate, applicants must meet the following criteria in addition to being an incorporated business:

1. Goods must be
   1. Used more than 90% for the purpose of gaining or producing income
   1. Purchased or leased in BC
2. Software must be purchased for use on device in BC
3. Goods must also be from a qualifying CCA class. In general, most machinery and equipment purchases used within a business are included. A comprehensive list can be found by clicking here. Some examples of eligible items include:
   1. Furniture
   1. Appliances
   1. Machinery
   1. Contractors moveable equipment
   1. Power-operated equipment for excavating, moving, placing or compacting earth, rock, concrete or asphalt
   1. Computers and computer hardware or software
   1. Zero-emission vehicles
4. The following have been designated as non-eligible items:
   1. Boats and vehicles, other than zero-emission vehicles
   1. Consumables, disposable items, real property
   1. Goods purchased to be installed as an improvement to real property
   1. Goods purchased for resale
   1. Exclusive products purchased by independent sales contractors
5. PST must be paid by its due date
6. For leased goods, eligible payments include those paid on or after September 17, 2020 and not beyond November 30, 2021.
7. The rebate does not apply to any goods delivered on October 1, 2021 or later unless a written contract specifies the eligible goods must be delivered no later than November 30, 2021

To apply for the rebate, you will need:

1. A summary of eligible amounts by CCA class
2. Your Certificate of Incorporation
3. Invoices, receipts, and proof of PST paid
4. If applicable, the Vehicle Identification Number (VIN) for each Zero-Emission Vehicle in your application
5. Your bank account information for the corporation

If you are going to have our office prepare the application for you, please provide us with items #2 – #5. We will require an engagement letter be signed prior to your application submission.

A total of two applications can be made:

• One between April 1, 2021 and September 30, 2021
• One between October 1, 2021 and March 31, 2022

Applications can be made online, either through your eTaxBC logon or without a logon.

More detailed information and specific examples for the PST rebate can be found on the province’s website through the following link:

https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/rebate-machinery-equipment#what-you-need

If you have any further questions, or if you would like us to apply for a rebate for you, please contact our office.