CanadaOne Twitter CanadaOne Linkedin CanadaOne Facebook CanadaONe RSS

Ask an Expert

Charging PST on Contracting

Expert: Rita Zelikman

Angel asked:

We are a flooring contractor we do pay Pst on our purchases but we do not charge Pst on the contract do I only remit what we've paid out.

Rita Zelikman answered:

Assuming you are a floor contractor who purchases flooring and then installs it in your customers' homes, you will pay PST on the purchases of the flooring products from your suppliers because the Ministry of Finance considers you to be the "end-user" of the product.

You do not charge PST on the floors or your labour to your customers because PST is not applicable to items that become part of real property. If you want to recover the cost of the PST you paid, then you would include it as part of your quote or price, but it cannot be explicitly stated on your invoices. There is no PST on labour, therefore, you are not remitting any PST.

The company from whom you purchased the flooring products is responsible for remiting the PST you paid on these products.

About the author

Rita Zelikman, CA is a sole-pracitioner, practicing public accounting in the north suburbs of Toronto. She can be contacted through her website

Click here to go back to Ask-an-Expert index page.