PST on shipping



  • I think your company charges PST on shipping as well while you shouldn't.

    most other companies dont charge PST on shipping. It's a minor thing but this tax is not recovered since there's no way to use it as an input tax credit

    I need someone to get back to me with an answer whether this can be fixed.



  • Dear customer ,

    According to the BC provincial sales tax bulletin, it mentions that " PST must be calculated on the total purchase price paid by the purchaser to receive title to taxable goods and PST applies to delivery charges and other transportation charges if seller delivers goods to purchaser before title to the goods passes to the purchaser, PST applies to the charges even if they are separately stated on the sales invoice ". Please refer to the following link, thanks.
    http://www.sbr.gov.bc.ca/documents_library/bulletins/pst_302.pdf

    Before the title pass to the purchaser, the title belongs to seller, so the PST will apply to the shipping. If the customer comes to our warehouse to pickup his goods before delivery, the title to the goods will pass to the purchaser, in such situation, the PST will not applied to the delivery.

    It also mentions that " If the seller charges the customer for delivery of the goods to another location, and this charge is separately stated on the sales invoice, PST applies only to the purchase price of the goods. If the delivery charge is not separately stated on the sales invoice, PST applies to the full amount charged to the customer " This applies only to the supplier or the purchaser with title pass before delivery. If it is not in above situation, PST will apply to delivery charge.

    If there is any question for concerning the pst exemption, please go the following link:

    http://www.sbr.gov.bc.ca/documents_library/bulletins/pst_302.pdf
    http://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/exemptions


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