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Revenue Tax - Service Stations and Garages
Provincial Treasury
Last Verified:
2005-10-07
The Taxation and Property Records Division of the Department of the Provincial Treasury, will provide owners and operators of service stations, garages, auto body shops, auto dealerships and businesses of a similar nature with information regarding the application of the Provincial Revenue Sales Tax or PST. This tax is in relation to the sale and repair of taxable goods as it applies to the individual business.
Eligibility Criteria
Owners and operators of service stations, garages, auto body shops, auto dealerships and businesses of a similar nature.
Summary
A Certificate of Registration allows you to purchase, tax free, parts and materials which will be incorporated into or become affixed to your customers vehicle. For example; spark plugs, batteries, body filler, patching supplies, welding rods, wheel weights, etc. (a complete list is available from the Taxation and Property Division). Customers must be charged tax on the total job cost, including both parts and labour.
Responsibilities
All registered vendors under the P.E.I. Revenue Tax Act are required to make regular returns of sales made and remit collected tax. Provincial sales tax is due and payable by the purchaser at the time of sale regardless whether the sale is a cash, charge or installment sale.
Records
All vendors are required to maintain proper records providing the following information for tax inspection and audit purposes:
- Sales invoices, purchase invoices and cash register tapes. Invoices should include the name, date,
of the merchandise and the tax charged.
- Details of Exempt Sales, such as sales to other registered vendors, Farmers, and Fishermen. Registration and/or permit numbers must accompany all tax exempt sales.
- Records of tax collected, including vendors copy of tax return forms, records of payments, disposal of tax, and the commission taken.
- A record of all goods taken from stock for own use.
All records and documents must be retained until such time as the Provincial TAx Commissioner authorizes their destruction.
Parts for Re-Sale
The Certificate of Registration allows you to purchase, tax free, parts and materials which will be incorporated into or become affixed to your customer's vehicle; for example: spark plugs, batteries, body filler, patching supplies, welding rods, wheel weights, etc. You in turn must charge tax to your customers on the job cost, including both parts and labour.
In providing service to your customers, certain materials and supplies will be used or consumed by you and will not become part of the vehicle being repaired. You are required to pay tax on all goods which are consumed by yourself or the repair facility.
Repair to Goods for Resale or Lease
A registered vendor, who has goods repaired which form part of the inventory of goods for resale, is not subject to tax on the material or labour charged for such repairs. For example, a motor vehicle being repaired for resale by a licensed dealer or for lease by a car rental agency would not be subject to tax on either the material or labour provided the vendor registration number and business class code are recorded.
Prince Edward Island Contact(s):
Kathy
Toole
Tax Administration Supervisor
Provincial Treasury
Shaw Building
P.O. Box 2000
Charlottetown, Prince Edward Island
C1A 7N8
Telephone: (902) 569-7542
Fax: (902) 368-6164
E-mail: katoole@gov.pe.ca
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