2020 – 2022 PST REBATE PROGRAM FOR CAPITAL PURCHASES
Program Summary
BC Government allows to receive PST on capital purchases between September 17, 2020, and March 31, 2022.
Below is a guide on how to apply for rebate.
Program Rules
Timeline
Purchases ordered and paid between September 17, 2020 and March 31, 2022.
Type of goods
Income producing goods (assets) for which PST was paid or self-assessed at the time of purchase.
Deadline
No applications will be accepted after September 31, 2022
Accounting Treatment
Goods don’t need to be depreciated to qualify if the goods fall under CCA class definition the rebate could be claimed
Submission
Submit first application now to ensure timely receipt of funds and second application after March 31, 2022.
Required Documents
Incorporation Documents
Void Cheque for direct deposit
BC PST Rebate Purchase Schedule
Invoices are not required at the time of application (may be required later)
Extract Data
Download purchases from your bookkeeping application or purchasing system. The best place to start are purchases made on capital account or expense accounts. PST rebate also could be claimed for new leases started in the eligibility period and for the payments made during the eligibility period. As every accounting system is different below we are giving some example of expense accounts that would qualify.
- Computer Hardware
- Software
- Office Furniture (including removable appliances)
- Printing and
- Leases (for new leases on eligible goods started in qualifying period)
- Tools
- Uniforms
- Dies/Jigs/Molds
- Advertising and promotion (signs)
- Vehicles (accessories, additions to vehicles such as boxes, shovels)
The download should have the following fields:
- Purchase Date
- Date PST Paid*
- Invoice Number
- Vendor, Description
- Total Cost
- PST Amount
*Date PST paid is either date goods were delivered or for goods that were prepaid date of payment.
Populate claim form
After download is complete, identify purchases that qualify and populate B.C. PST Rebate on Select Machinery and Equipment Purchase Schedule
Tools under $500, uniforms, molds and software are considered class 12 equipment. You do not need to recognize them as fixed assets and depreciate them. As per tax rules they are 100% depreciated in current year without half year rule applied. So, we simply expense them in the year they were bought.
Some companies will expense computers and handheld devices and some equipment under certain threshold, e.g. less than $5,000. To claim rebate, you do not need to reclassify purchases as fixed assets. Meeting the CCA definition is sufficient, even if you choose not to depreciate that equipment.
Below you will find comprehensive, but not all inclusive list of items that qualify. If you have any questions about whether item qualifies or not please feel free to contact us.
Eligible Assets
Class 8
- Furniture
- Appliances
- Tools costing $500 or more per tool
- Some fixtures (not attached to a building)
- Machinery (tanks, vats and kilns)
- Outdoor advertising signs
- Refrigeration equipment
- Photocopiers
- Telephone equipment
- Scales
- Storage bins
- Accessories installed on vehicles
Class 10
- Contractor’s movable equipment, including portable camp buildings, acquired for use in a construction business or for lease to another taxpayer for use in that other taxpayer’s construction business
- Sleighs or wagons (on rails)
- Telecommunication spacecrafts
While large portion of movable equipment used in manufacturing, extraction of oil/gas produces, mining and logging are already exempt from PST for most Production Machinery and Equipment (PME) you will be able to claim PST rebate for new:
- Forklifts and other equipment used at non-qualified portion of the site.
Class 12
- Tools under 500
- China, cutlery, kitchen utensils that cost under $200
- Uniforms, linen
- Dies, jigs, moulds
- Cutting or shaping parts of a machine
- Medical or dental instruments that cost under $500,
- Computer software such as ERP, databases and office productivity (non systems)
Class 38
Most power-operated, movable equipment for use in excavating, moving, placing or compacting earth, rock, concrete or asphalt
Class 43 and 53
Equipment used primarily in the manufacturing or processing of goods
While manufacturers are already exempt from PST for most Production Machinery and Equipment (PME) you will be able to claim PST rebate for new:
- Compressors, pumps, pipes and valves.
- Portable mobile and standby generators.
- Equipment used to bring electricity to non-exempt PME
- Equipment to control and operate non-exempt PME
Class 43.1 and 43.2
Electrical vehicle charging stations (EVCSs).
Class 46
Data network infrastructure equipment and systems software for that equipment
Class 50
Computers, computer hardware, servers and systems software for that equipment
Class 54 and 55
Zero emission vehicles
Non-Eligible Assets
Vehicles
- Passenger vehicles
- Vans and Trucks
- Busses
- Boats
- Freight trucks
- Trailers
- Off-road vehicles and snowmobiles
Zero-emission vehicles such as fully electric and some plug in hybrids are eligible
Additions to real property
- Buildings
- Doors, windows, floors and other building parts
- Materials used to construct buildings
- Heating and ventilation systems
- Air conditioners that are not portable.
- Security systems
- Built in counters and cabinets
- Built in appliances (dishwasher)
You cannot claim PST rebate on equipment that becomes part of real property. For example, some kitchen equipment is bolted to the walls or cabinets. Ventilation hoods, air conditioners, HVAC, built-in counters and cabinets, stainless steel sheeting on the walls, and built-in dishwashers.
You can claim rebate on equipment that is affixed and does not become permanent fixture and could be easily removed. Examples are deep fryers, ovens, prep-tables and fridges.
Submit the claim
Please ensure you have the following documentation ready in electronic format.
- Certificate of incorporation
- Void cheque
- Completed rebate schedule.
Locate your CRA business number (Payroll/GST number) and PST number (if applicable). Proceed to B.C. PST rebate on select machinery and equipment – Province of British Columbia (gov.bc.ca)
At the bottom there is an option to apply through eTaxBC or apply without registration.
Provide all required information and submit the application.
Get More Help!
This rebate process may be overwhelming and complicated. We would be happy to help you with any questions on this rebate.
Please contact us for a general advice on PST.
Learn how we can cost-effectively apply for this rebate on your behalf.
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