PST on purchase of business assets

This entry covers British Columbia and Saskatchewan, using their governments’ own pages; check the rules where you are.

British Columbia

The B.C. Ministry of Finance says PST applies to the taxable business assets, and its page lists items such as accounts receivable, franchise fees, goodwill, inventory bought solely for resale, real property and shares of a business as not subject to PST. Affixed machinery is taxable even when included in a purchase of real property, unless a specific exemption applies. The ministry says goodwill must be valued reasonably and the parties cannot shift price from taxable assets to goodwill to avoid PST. If the seller is not a collector or does not charge PST, the purchaser must self-assess and remit it.

Saskatchewan

The Government of Saskatchewan says businesses must pay PST on the purchase of new and used assets. It says a business must self-assess when it buys from a supplier who did not collect the tax, such as a business ceasing operations, and, for assets acquired when starting business operations in Saskatchewan, it asks for the asset purchase agreement to be attached to a Business Assets Declaration form.