The BC Government is offering a temporary PST rebate to help corporations with the financial hardships of the pandemic. This rebate is separate from the existing PST refund process, and we want to make sure it doesn’t slip through the cracks for your business.
Have you purchased any machinery or equipment since September 17, 2020, or are you looking to do so in the near future? We would love to see how Areti can help you. You could qualify for a refunded amount equal to the PST paid up until March 31, 2022.
Who qualifies for this rebate?
This rebate is for incorporated businesses and corporate partners in partnerships (for the amount of PST they paid on their proportional ownership of the machinery and equipment). Furthermore, this rebate is not available to sole proprietors, crown corporations, local government corps, charities/non-profits, schools/universities, hospitals, health councils and government agents.
What Counts Towards This Rebate?
When they speak of “select machinery and equipment,” they refer to the capital cost allowance (CCA) classes 8, 10, 12, 16, 38, 43, 43.1, 43.2, 46, 50, 53, 54 55. So, in short, most non-consumable goods are covered. A full breakdown of each class can be found by clicking here.
For the goods to qualify, they must also be:
- Obtained substantially ( i.e. greater than 90%) to gain or produce income;
- Purchased or leased (both capital or operating) in BC;
- In the case of software, it must’ve been purchased for use or with a device ordinarily situated in BC.
The following assets do not qualify:
- Boats and vehicles (except for zero-emission vehicles);
- Consumables, disposable items and real property;
- Goods purchases to be installed as an improvement to real property (except for affixed machinery);
- Goods purchase for resale by a small seller;
- Exclusive products purchase by independent sales contractors.
How to Apply?
There are three applications periods for submission. The first is between April 1, 2021, and September 30, 2021. The second is between October 1, 2021, and March 31, 2022. The third is April 1, 2022 and September 30, 2022. However, they give a bit of leeway by allowing both applications in the second application period or all three in the third period.
Online applications can be expedited using your eTaxBC account or by applying (with a guest account) online through the following link. Ensure you have all receipts and invoices to show proof of payment for PST and have incorporations documents available.
If you have any questions or concerns, please reach out to Team Areti at any time.
Update: Revised to account for extension until March 31, 2022.