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Starting
or Purchasing a Business
If
you are starting a new business or purchasing an existing business, this
page will help you find the information you need.
Our
goal is to help you understand how British Columbia sales tax
(PST), hotel room tax, tobacco tax, and fuel tax may or may not apply
to your business. This will assist you in meeting your legal
tax obligations.
We
have set up this Web site to help you, but we are also available by
telephone, mail or e-mail to answer your questions. Please
feel free to contact us.
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Legal
Obligations |
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If
you will be doing business in British Columbia,
there is a very good chance that you will be required to collect
tax on behalf of the province. The links to the right
will help you determine if you need to register and collect
the tax.
If you are required to register and collect tax, failure to do so will result in
assessments and penalties. Therefore, it is important
for you to know your legal tax obligations and rights under the tax laws. |
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Business Assets |
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There
are a lot of things to think about when starting or purchasing a
business. When it comes to provincial taxes, the first
thing to do is to make sure you are not unknowingly running
up a tax debt.
Many new business people do not realize that they must pay tax on their purchases or leases of equipment and
supplies used in their business. This
includes computers, phones/fax, desks and other furniture,
office supplies - basically anything that you did not buy for the sole purpose of selling or leasing to your customers.
This misunderstanding often occurs when the equipment
or supplies come from outside British Columbia. Even though the out-of-province
seller may not have collected the tax, you are still required
to pay it. You must calculate and self-remit
the tax. |
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Buying
a Tax Liability |
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Another way a new owner of a business can end up with a
tax debt is to buy it along with the business. If
you buy a business with a tax debt, the tax debt becomes
yours.
To avoid this, make sure you or your lawyer obtains a Clearance
Certificate from the Consumer Taxation Branch. Contact
the people who issue these certificates for more information.
A Clearance Certificate lets you know if the
business you are buying has any known tax liabilities with the branch. However, if a tax
liability is discovered at a later date, even if it was
incurred before you bought the business, it's yours -
so be careful when reviewing the company's books. |
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How to Register |
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If you need to register under the Social Service Tax Act (PST) or Hotel Room Tax Act, there are three ways to do it.
On-line:
Complete the on-line
application form and submit it directly to the Consumer
Taxation Branch through our secured site. OneStop Business Registry:
This service is available both through the Internet and at several kiosks located throughout the province.
Paper:
Download the paper
application form, complete it, print it, then fax, mail or submit it in person to our office. |
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Over
100 Publications to Help You |
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The
branch maintains over 100 public information tax bulletins,
brochures, and notices,
and they are all on this Web site. Please take the
time to look through them for topics relating to your
business.
And,
if you have any questions, please Contact
Us.
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