Do I charge PST on the delivery of the equipment?
By Hank Bulmash | July 28, 2013
I have an equipment rental in Alberta. People call and rent equipment from me. I then deliver it to them in Saskatchewan. I charge PST on the equipment that I rented. But do I charge PST on the delivery of the equipment. Eg,. Rentals are $1,000. I send a truck out with the equipment and the delivery charge is $150.
Hank Bulmash answered:
The writer's business is located in Alberta where there is no provincial sales tax ("PST"). The business rents equipment to users in Saskatchewan. The business delivers the equipment to customers in Saskatchewan. The business is registered for Saskatchewan PST and charges it on rentals to Saskatchewan customers. The question is should PST also be charged on delivery costs?
Saskatchewan charges PST on the delivery cost of goods bought from an out of province supplier and delivered to a customer within the province. Similarly, I expect that the delivery charges relating to rental equipment delivered to a customer within Saskatchewan are also subject to PST.