B.C. PST rebate on select machinery and equipment

he B.C. PST Rebate on Select Machinery and Equipment is a temporary provincial sales tax (PST) program to help corporations recover from the financial impacts of COVID-19.

The program acts like a refund but is separate from the existing PST Refund process. Under this temporary program, corporations can apply to receive an amount equal to the PST they paid between September 17, 2020 and September 30, 2021 on qualifying machinery and equipment.

Last updated: September 18, 2020

All incorporated businesses except the following are eligible to apply:

  • Crown corporations (federal or provincial)
  • Local government corporations
  • Charities and non-profit corporations, except incorporated businesses wholly or partly owned by charities and non-profit corporations
  • Schools, school boards and universities, including business, trade and vocational schools
  • Hospitals
  • Regional health boards and community health councils designated under the Health Authorities Act
  • Agents of the government and of the other entities listed above, to the extent that the PST is paid in their capacity as an agent

Unincorporated entities, such as sole proprietors, cannot apply. However, they can choose to incorporate to take advantage of this program. Only machinery and equipment obtained after incorporation are eligible.

Qualifying Machinery and Equipment

For simplicity, Income Tax Act (Canada) capital cost allowance (CCA) class definitions already familiar to incorporated businesses will be used to establish which types of capital assets qualify for the rebate program.

To be eligible for the rebate, eligible property must be:

  • described by the definitions found in Schedule II to the federal Income Tax Regulations, as they read on September 1, 2020, for CCA classes 8, 10, 12, 16, 43, 43.1, 43.2, 46, 50, 53, 54, and 55
  • obtained substantially (more than 90%) for the purpose of gaining or producing income, and
  • not excluded (as set out in the technical backgrounder)

Additionally, software and goods, other than goods obtained by lease, must be capital assets for the rebate to apply.

https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/rebate-machinery-equipment

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