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Buying Telephone systems across provinces

Expert: Heather L. Weber

Darrant asked:

The company I am working for are both GST and PST registrants. It(head office in Ontario) made a purchase order for Telephone Systems for its other plants in Quebec, Alberta, and BC. The head office received a total bill and made the payment.

The invoice provided by the supplier in Ontario had both the GST# and QST# on it. The invoice charged the GST for all the province, but only charged QST for the provincial Tax. Does my company need to self-assess the PST for BC and add it to the cost of phone system for BC plant, and then pay PST to BC government? Is it correct that we don't need to worry about PST for Alberta since Alberta is free of PST?

Heather L. Weber answered:

Yes your company is required to self assess PST on the cost of the equipment being used in BC. The PST would be calculated on the landed cost of the goods into BC. The landed cost includes the cost of the goods, shipping, freight, and duty, but does not include the GST.

The PST calculated would be remitted on the next PST return. The PST would then form part of the capital cost of the phone system. If the company is not a BC PST filer, the PST would be remitted on a casual remitter form FIN 428. For additional information regarding out of province purchases please see SST Bulletin 043 Goods Purchased from an Out of Province Supplier.

There are no provincial sales taxes in Alberta, therefore a self assessment of PST is not required for the phones placed in the Alberta offices.

About the author

Heather L. Weber, C.G.A. is a Commodity Tax Specialist with Meyers Norris Penny LLP.

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