B.C. PST Rebate on Select Machinery and Equipment
British Columbia has recently rolled out a new “B.C. PST Rebate on Select Machinery and Equipment”.
This article will break down what this PST rebate is, who can apply and how to apply for the rebate.
We will answer the following questions:
- What is the BC PST Rebate on Select Machinery and Equipment?
- Who can apply for the BC PST Rebate on Select Machinery and Equipment
- What exactly is “Qualifying Machinery and Equipment?”
- How to apply for the BC PST Rebate on Select Machinery and Equipment
- When should you apply?
What is the B.C. PST Rebate on Select Machinery and Equipment?
The 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.
If your incorporated business pays PST on purchases or leases of “qualifying machinery and equipment” between September 17, 2020 and March 31, 2022, it may be eligible to recover the PST that was paid.
Who can apply for the BC PST Rebate on Select Machinery and Equipment?
This rebate only applies to incorporated businesses who have paid or will pay PST on qualifying machinery and equipment between September 17, 2020 and March 31, 2022.
Unincorporated entities (sole proprietors, partnerships, etc.) are not eligible to apply.
There are a few very specific examples of incorporated businesses that are not eligible. These include crown corporations, local government corporations, some charities, schools and hospitals.
It’s important to note that a business does not need to be registered to collect PST itself to apply for the rebate.
More details on who can apply can be found here.
What is Qualifying Machinery and Equipment?
The rebate relates to PST that incorporated businesses paid or will pay on purchases or leases Qualifying Machinery and Equipment between September 17, 2020 and March 31, 2022.
Great - I suppose, then, it is important to know what exactly “Qualifying Machinery and Equipment” is!
For the purpose of this rebate, Qualifying Machinery and Equipment is generally defined as an asset that was capitalized for accounting purposes. You can read more info on “capital assets” on our blog post here.
The idea is that the equipment or machinery is not consumable, or won’t be used up over the period of one year. Machinery or equipment typically can be used in the business over multiple years.
For a bit more clarity, here are some common examples of capitalized machinery or equipment that could be eligible.
- Manufacturing equipment
- Computer equipment
- Zero-emission Vehicles
- Cell phones and tablets
These are common examples, but certainly not an exhaustive list. You can find many more examples on the rebate information page here.
In addition, the machinery or equipment must also be:
- Obtained substantially (more than 90 percent) for the purpose of gaining or producing income
- Purchased or leased in B.C., brought into or received in B.C., brought into B.C. for temporary use, received from a related company, or received as a taxable gift,
- Software that was purchased for use on or with a device ordinarily situated in B.C.
How to apply for the BC PST Rebate on Select Machinery and Equipment
There are two ways to apply for the BC PST Rebate on Select Machinery and Equipment.
- eTaxBC Portal - If your business has an eTaxBC Portal, you can login and apply
- Apply Online - Alternatively, you can apply online here
Once you have logged in to eTaxBC or have begun the online application, you’ll be presented with the following information and fields to complete.
1. Before you Begin, you will need the following information to complete the application:
- A summary of your eligible machinery and equipment including PST paid on purchases or leases of equipment. This summary must be broken out by Capital Cost Allowance (CCA) class. Common examples and their related CCA classes can be found here.
- Your Certification of Incorporation. You may be required to attach a copy during the application process.
- Invoices, receipts and proof of PST paid. You may be required to attach copies during the application process.
- If applicable, have the Vehicle Identification Numbers (VIN) for any Zero-Emission Vehicle included in the application.
- Your corporation’s bank account information. All eligible applicants with a Canadian bank account will have their rebate directly deposited into their account. International applicants who do not have a Canadian bank account will be issued a cheque.
2. Eligibility Checklist
Next you will be presented with an eligibility checklist. Complete the checklist to confirm that you are eligible to claim the rebate.
3. Business Information
Next you will need to fill out some general information about your business. This includes the following fields.
4. Enter Rebate Details
Next you’ll be entering the details for the equipment and machinery that was purchased or leased.
You will need to enter the total eligible amounts and PST paid broken down by CCA class. CCA class information can be found here to help categorize your eligible amounts by CCA class.
You can also add information about any Zero-Emission vehicles that were purchased or leased.
And then respond yes or no to whether you’ve self-assessed PST on any of the eligible machinery or equipment.
This is relatively uncommon, but does happen. More info on how to determine if you’ve self-assessed PST can be found on page 11 of this guide.
5. Banking Information
Next up, enter the bank information for your corporation to have the rebate directly deposited into your accounts.
The last step before submitting your application is to attach the supporting documentation for your PST rebate claim.
Make sure that you review the acceptable documentation and what is required to be included on the supporting documents.
Review and complete the certification component before submitting your application.
Who Can Complete the Application?
It’s important to note that only directors of the corporation or employees who have been delegated signing authority can submit the application. This means that thirty parties like accountants should not complete the application for their clients.
The good news is that if you get stuck on your application, the Minister of Finance PST help phone line is actually one of the best we’ve come across. Call 1-877-388-4440 between 8:30am and 4:30pm Monday through Friday for excellent customer service.
When should you apply for the BC PST Rebate on Select Machinery and Equipment?
You’re only able to submit receipts for purchases made between September 17, 2020 and March 31, 2022.
The deadline to apply for the rebate is September 30, 2022.