New PST exemption for business purchases shipped out of BC immediately after purchase

Plain-language summary · AI-assisted

Businesses that buy tangible personal property at a BC sale point, use it only for storage while in the province, and then ship it out of BC for delivery elsewhere are now exempt from BC provincial sales tax on that purchase. This exemption applies only when the property is bought for business use — personal purchases do not qualify. To claim the exemption, the seller (collector) must obtain a signed declaration from the buyer, in a form set by the director, confirming the business-use purpose. Businesses making such purchases should be prepared to provide this declaration at the point of sale, and sellers should update their exemption documentation processes accordingly.

Who this affects
businesses purchasing goods at BC sale locations for shipment out of province · retailers and sellers collecting PST · compliance and tax teams at businesses with cross-border supply chains