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BC PST Rebate on Select Machinery and Equipment

August 17, 2022

Question:

What is the BC PST rebate on qualifying machinery and equipment?

Facts:

To help BC corporations with recovery from COVID-19, the provincial government has implemented a PST rebate on qualifying machinery and equipment. The PST paid on this equipment is eligible for a full rebate. Qualifying assets must have been purchased between September 17, 2020, and March 31, 2022.

Discussion:

There are exclusions to types of businesses that can apply for the rebate.  Ie. Unincorporated businesses, crown corporations, government corporations, charities, non-profits, schools, hospitals, etc.

Qualifying machinery and equipment:

  • capital assets that belong to the following CCA classes 8, 10, 12, 16, 38, 43, 43.1, 43.2, 46, 50, 53, 54, and 55
  • capital assets will be used 90% or more for purpose of gaining or producing income
  • capital assets that are leased instead of purchased also qualify


Exclusions:

  • boats and vehicles (except zero-emission vehicles)
  • consumable or disposable items
  • real property or improvements to real property
  • goods purchased for resale by small seller


General Rules:

  • The rebate does not apply for goods delivered after April 1, 2022, unless the written contract specifies delivery by May 31, 2022.
  • PST paid on leases is eligible for a rental period between September 17, 2020, and May 31, 2022.
  • PST invoiced before the deadline of March 31, 2022, but not paid until after this date does not qualify for the rebate.
  • Applications can be made between April 1, 2022, and October 3, 2022 (final period).

For additional details about BC’s PST Rebate on Select Machinery and Equipment, please click here.

If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.

Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.

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