- What
is Provincial Sales Tax (PST)?
- Do
I need a Vendor's Licence?
- I
provide services, do I need to become licensed and collect tax?
- Do
businesses that provide non-taxable services need to be licensed?
- Are
contractors required to be licensed?
- How
do I apply for a Vendor's Licence or a Registered Consumer Permit
number?
- What
does a vendor's licence number allow me to do?
- What
does a business need to do if purchasing another business?
- Are
out-of-province purchases of business-use equipment and supplies
subject to PST?
- Are
out-of-province purchases by individuals subject to PST?
- Can
non-residents purchase goods and services tax exempt in Saskatchewan?
- When
are tax returns due?
- How
do I invoice for tax?
- I
moved into the Province. Are my belongings taxable?
- Am
I allowed to recover the tax portion of my bad debts?
- I
am a non-resident vendor making sales into the Province. Do
I have to collect tax on my sales?
- I
am a non-resident contractor that is considering bidding a job
in the Province. How does PST apply?
- Are
there input tax credits for Provincial Sales Tax for goods consumed
by a business similar to the credit that is allowed for GST
purposes?
- I
sell liquor, do I require a separate licence?
- Do
I have to collect PST on tobacco sales?
1.
What is Provincial Sales Tax (PST)?
The Provincial
Sales Tax is a 5% sales tax that applies to taxable goods and
services consumed or used in Saskatchewan. It applies to goods
and services purchased in the province as well as goods and services
that are imported for consumption or use in Saskatchewan. The
GST is excluded in calculating the amount of PST payable.
The PST applies
to the purchase or rental of new and used tangible personal property.
The following services are also subject to PST: telecommunication
services, cable television, telephone answering services, accommodation,
repair or installation labour, legal services, laundry and drycleaning
services, security and investigation services, credit reporting
and account collection services, real estate commissions, commercial
building cleaning services, accounting services, engineering and
architectural services, veterinary services, computer services,
employment placement services and advertising services.
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2.
Do I need a Vendor's Licence?
Anyone selling
taxable goods or services in Saskatchewan is required to obtain
a vendor's licence.
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3.
I provide services only, do I need to become licensed and collect
tax?
Businesses
selling taxable services in Saskatchewan must become licensed
as vendors and collect tax.
Taxable services
include the following: telecommunication services, telephone answering
services, cable television, accommodation, repair or installation
labour, legal services, laundry and drycleaning services, security
and investigation services, credit reporting and account collection
services, real estate commissions, commercial building cleaning
services, accounting services, engineering and architectural services,
veterinary services, computer services, employment placement services
and advertising services.
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4.
Do businesses that provide non-taxable services need to be licensed?
Businesses
providing non-taxable services are not required to be licensed
as vendors or collect tax on the services provided. However, a
business selling non-taxable services is required to become registered
as a consumer, and is responsible for paying tax on equipment
and supplies used to provide their services. The tax must be paid
to the supplier. If the tax is not paid to the supplier, the tax
must be self-assessed and remitted with the consumers regular
tax return.
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5.
Are construction contractors required to be licensed?
A business
that performs supply and install contracts (goods that are permanently
attached to a building, such as carpet, painting, plumbing, electrical
or building construction or renovations) is required to become
registered as a consumer. Tax should not be billed to or collected
from the contractors customers on the materials or labour
charges used in carrying out a supply and install contract. Contractors
are considered to be the consumers of the material used to carry
out these contracts. As such, a contractor is required to pay
the tax on the cost of the materials used. The tax paid by the
contractor on supplies and materials may be included in the amount
billed to the customer, but the tax should not be listed or collected
as a separate charge to the contractors customers. Even
though contractors do not collect tax from their customers, they
are required to become registered as a consumer and obtain a Registered
Consumer Permit number.
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6.
How do I apply for a Vendor's Licence or a Registered Consumer
Permit number?
An application
form is available on the Internet, can be mailed or faxed to you,
or completed over the phone. A vendor's licence or consumer number
will be forwarded in the mail within one week. Licences can be
issued immediately by completing the form at our Regina office.
Application
forms are available here,
or call 1-800-667-6102.
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7.
What does a vendor's licence number allow me to do?
A vendor's
licence number allows you to purchase inventory and taxable services
that are for resale without paying tax by providing your supplier
with your vendors licence number. Non-returnable packaging
materials may also be purchased tax-exempt by providing your supplier
with the number. You may not purchase goods or services tax-exempt
for your personal use or for use in operating your business by
quoting your vendors licence number.
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8.
What are the tax implications of purchasing another business or
buying used assets from another business?
In order
to avoid possible liability for unpaid PST, before finalizing
the purchase or sale of a business, a clearance certificate should
be obtained from Saskatchewan Finance indicating that all tax
has been accounted for by the business. To obtain a clearance
certificate, please call 1-800-667-6102 Extension 0602. PST is
payable on taxable assets that are acquired from another business.
A Business Assets Declaration
form must be completed and a copy of the agreement for sale
must be submitted to Saskatchewan Finance.
Businesses
that dispose of goods or equipment used in their business, such
as office equipment, furniture, machinery, tools, construction
equipment, etc., are required to collect PST on the selling price
if these items.
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9.
Are out-of-province purchases of equipment and supplies for business
use subject to PST?
The tax must
be paid on all new or used equipment and supplies that are purchased
for business use. The tax must be self-assessed and remitted with
a return form if the tax is not paid to the supplier. Only inventory
that is purchased for resale may be purchased tax exempt.
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10.
Are out-of-province purchases by individuals subject to PST?
Residents
purchasing taxable goods by mail order or while travelling outside
Saskatchewan are required to report and remit the PST directly
to Saskatchewan Finance. The tax on personal goods purchased outside
Canada is collected at the border by the Canada Border Services
Agency. The tax on goods purchased in other provinces must be
reported and remitted to Saskatchewan Finance. To report tax on
imported goods, please call 1-800-667-6102.
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11.
Can non-residents purchase goods and services tax-exempt in Saskatchewan?
With the exception
of vehicles, a non-resident is required to pay PST on all goods
that are purchased in Saskatchewan. The goods are exempt from
tax only when the retailer ships the goods to the purchaser outside
the Province. Refunds are not available for non-residents who
remove goods purchased in Saskatchewan.
A non-resident
certificate must be completed by a non-resident in order to purchase
vehicles without the payment of PST. These certificates are available
from motor vehicle dealers.
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12.
When are tax returns due?
Returns are
due 20 days following the end of the return period. If returns
are not submitted by the due dates, penalty and interest charges
will apply to the net tax payable. In addition, the vendors
commission will be forfeited. If the due date falls on a weekend or holiday, it changes to the next business day.
Return periods are based on the amount of tax collected as follows:
Tax
collections or tax payable |
Return
Period |
0-$3,600
per year |
Annual |
$3,600
- $7200 per year |
Quarterly |
greater
than $7,200 per year |
Monthly |
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13.
How do I indicate the PST on my invoices?
The customer's
receipt must show the PST as a separate amount when invoicing
a retail sale. You may not show a tax-inclusive lump sum on the
receipt. Although you may advertise that the tax is included in
your prices, the tax must be shown separately on your invoices.
Tax applies
on the selling price of the item or services excluding the GST.
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14.
I moved into the Province. Are my belongings taxable?
Persons who
have been a full time resident outside of Saskatchewan for at
least six months (extended vacations don't count) may bring their
personal effects into the Province without paying tax. Eligible
personal effects must be brought into Saskatchewan within six
months from the date the person takes up residence. This exemption
is not applicable to business assets or rented personal effects.
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15.
Am I allowed to recover the tax portion of my bad debts?
The tax portion
of uncollectible accounts may be claimed as a deduction from the
PST to be remitted by a vendor. The write off only applies to
that portion of the sale that was not collected and not the total
sale. In order to claim a deduction, the bad debt must be written
off of the vendor's books. The vendor may deduct the tax portion
of his or her bad debts from a future return. A tax credit may
only be claimed within four years of the amount being written
off of the vendors books.
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16.
I am a non-resident vendor making sales into the Province. Do
I have to collect tax on my sales?
All persons
making taxable sales in Saskatchewan should become licensed and
collect the tax. Non-resident businesses should consider becoming
licensed as a convenience to their customers. If non-resident
businesses don't collect PST at the time of sale, their customers
are required to self assess and remit the tax.
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17.
I am a non-resident contractor that is considering bidding a job
in Saskatchewan. How does PST apply?
Non-resident
contractors are required to become registered and pay tax on equipment
used in carrying out their contracts in Saskatchewan. Tax is payable
on the contractors cost of all materials and supplies used
to complete each contract. Formulas are used to calculate the
pro-rata amount of tax owing on equipment.
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18.
Are there input tax credits for PST for goods consumed by a business
similar to the credit that is allowed for GST purposes?
There are
no input credits allowed in Saskatchewan. The tax is payable on
all business-use goods, other than goods purchased for resale.
19.
I sell liquor, do I require a separate licence?
Yes, the Saskatchewan
Liquor and Gaming Authority (SLGA) notifies the Department of
Finance whenever a Liquor Licence is issued and we issue a separate
licence under The Liquor Consumption Tax Act (the licence
number starts with a 4). This licence authorizes the holder to
purchase liquor from the SLGA for resale. Return forms are sent
to you either monthly, quarterly or annually depending on the
amount of Liquor Consumption Tax you will collect (the same filing
requirements as for PST).
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20.
Do I have to collect PST on tobacco sales?
Yes, PST must
be collected on the full selling price, excluding GST. If sold
for a tax-inclusive price, the PST may be calculated by multiplying
the selling price by 5/111.
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