16 Dec Update: BC PST Rebate on Select Machinery and Equipment

The Government of BC has extended the Provincial Sales Tax (PST) rebate period for eligible corporations until March 31, 2022. The rebate was initially only available for the periods of September 17, 2020 to September 30, 2021.

The deadline to submit the rebate application is now September 30, 2022 (an extension of six months).

This rebate allows eligible BC corporations to claim a rebate equal to PST paid on “qualifying machinery and equipment.” “Qualifying machinery and equipment” consists of capital assets in the following Capital Cost Allowance classes (CCA):

• 8, 10, 12, 16, 38, 43, 43.1, 43.2, 46, 50, 53, 54, and 55

These include the common capital assets including furniture, equipment, computers, and software.  These capital assets must have been obtained substantially (i.e., 90%+) for the purpose of gaining or producing income. PST paid on leases (both capital and/or operating leases) of “qualifying machinery and equipment” are also eligible for the rebate.

However, the following list of assets are explicitly excluded from the PST rebate program:

• Consumables, disposable items, real property
• Boats and vehicles, other than zero-emission vehicles
• Goods purchased to be installed as an improvement to real property (other than “affixed machinery”)
• Exclusive products purchased by independent sales contractors; and
• Goods purchased for resale by a small seller.

For additional information please visit the Ministry website or contact your tax professionals at Clearline CPA.