Regulation BEFORE repealed by BC Reg 91/2013, effective April 1, 2013.
| B.C. Reg. 84/58 O.C. 1388/48 |
Social Service Tax Act
Social Service Tax Act Regulation
Definitions
2 (1) In sections 3.4, 5.1 (1), 5.4, 5.6 to 5.13, 5.17 and 5.19 of this regulation, "tax" or "taxes" includes a levy or levies under section 67, 68 or 68.01 of the Act.
(2) In sections 3.2, 5.1 (2), 5.2, 5.4, 5.5, 5.8 (1), 5.9 (1), 5.13, 5.14, 5.15 and 5.18 (2) (b) of this regulation, "vendor" includes a person who is required to collect tax under section 93 (1.1) of the Act.
[en. B.C. Reg. 133/2001, s. 1; am. B.C. Regs. 203/2007, Sch. s. 1; 220/2010, Sch. 2, s. 1.]
Application to regulations
2.1 In these regulations, unless the context otherwise requires, section 1 of the Act shall apply.
Definitions: application
2.3 The following expressions when used either in the Act or in these regulations shall have the meaning as assigned herein.
Definition: food products
2.4 Food products includes cereals and cereal products, milk and milk products, meat and meat products, fish and fish products, eggs and egg products, spices and salt, sugar and sugar products, coffee and coffee substitutes, tea, cocoa and cocoa products, but does not include spirituous, malt or vinous liquors. Where spirituous, malt, vinous liquors or other alcoholic beverages are served with a prepared meal, they shall not be considered as part thereof.
[en. B.C. Reg. 92/66; am. B.C. Reg. 372/79, s. 1.]
Definition: premises
2.5 Premises means the entire building, tent or other structure, together with contiguous lands or any lands whether enclosed or not, in or on any part of which the vendor by permission, licence, grant, privilege or by any other right whatsoever makes sales.
In business blocks, apartments or other buildings in which separate and distinct rooms and apartments are owned, leased or occupied by more than one tenant, such separate and distinct rooms or apartments shall constitute separate premises.
Definition: retail lease
2.5.1 Retail lease means a lease to a person who, as a result of the lease, becomes a lessee.
[en. B.C. Reg. 260/99, s. 1.]
Definition: school supplies
2.6 School supplies means the following items when purchased by or on behalf of students for their use in courses of study given by any school, college or university, or by any business, trade or vocational school;
| Pens, other than fountain pens and nibs | Pencils | |
| Paints and brushes | Paste | |
| Drawing instruments | Erasers | |
| Foolscap, lined and unlined paper | Crayons | |
| Drawing paper, graph paper and music manuscript paper | Rulers | |
| School art portfolios | Work books | |
| School bags | Ring binders | |
| Ink | ||
and also means the following items when purchased by any school board or similar authority for use in instructing students or for the use or consumption of students:
Chalk
Maps, charts, diagrams
Lesson notes and précis
Visual aid materials
Supplies and materials consumed in home economics courses, but not including cutlery, dishes, table linen, pots and pans, equipment, etc.
Supplies and materials consumed in woodworking, metal working or other
industrial arts courses, but not including tools or equipment
Chemicals or other substances consumed in courses of a scientific nature, but not including glassware, tools or equipment
Supplies and materials consumed in arts and crafts courses, but not including tools or equipment
Supplies and materials consumed in commercial or business courses, but not including equipment
Supplies and materials consumed in vocational training courses, but not including tools or equipment.
[en. B.C. Reg. 92/66.]
Definition: bona fide farmer
2.8 A "bona fide farmer" means a person holding a farm land classification under the provisions of the Assessment Act.
[en. B.C. Reg. 72/78.]
Definition: bona fide commercial fisherman
2.9 A "bona fide commercial fisherman" means a person
(a) who fishes for commercial purposes under the authority of the Fisheries Act (Canada), and
(b) whose gross income in an immediately preceding year from commercial fishing in waters in or adjacent to British Columbia is not less than $10 000, or who derived at least 51% of that gross income from commercial fishing in those waters.
[en. B.C. Reg. 433/87.]
Definition: natural water
2.10 "Natural water" shall include water which has been treated for the control of impurities in the interests of public health, and ice.
Definition: dentist
2.16 "Dentist" means a person legally qualified and entitled to practise the profession of dentistry in the Province.
Definition: prescription
2.18 "Prescription" means a formula or direction given by a practitioner, as defined under the Pharmacy Operations and Drug Scheduling Act, or an optometrist of a remedy for or as a treatment for a disease or disorder.
[am. B.C. Regs. 36/2008, s. 1; 30/2009, s. 1; 264/2009, s. (a).]
Definition: optometrist
2.20 "Optometrist" means a person who is authorized to practise as an optometrist under the Optometrists Regulation.
[am. B.C. Reg. 422/2008, App. s. 9.]
Definition: optician
2.20.1 "Optician" means a person who is authorized as an optician or contact lens fitter under the Opticians Regulation.
[en. B.C. Reg. 148/2008, s. 1; am. B.C. Reg. 270/2008.]
Definition: all-terrain vehicle
2.20.2 "Qualifying all-terrain vehicle" means an all-terrain vehicle that is self-propelled, has at least 4 wheels, is designed primarily for use on unprepared surfaces, and is not eligible to be licensed for use on a highway in British Columbia except in accordance with section 24.04 of the Motor Vehicle Act Regulations.
[en. B.C. Reg. 36/2008, s. 2.]
Farmer and fisherman exemptions
2.21 (1) Subject to subsection (2), for the purpose of section 73 (1) (b) of the Act the following tangible personal property, when purchased or leased by a bona fide farmer to be used solely for farm purposes, is prescribed:
Above ground manure aerating systems
Adhesive pest management materials, including barriers, strips, insect trap coating, bird repellent and glue trap coating
Aerators
Agricultural lime
Alley gates placed over a ditch at the entrance of a livestock enclosure to allow vehicles to enter but deter livestock from leaving
Animals, the products of which ordinarily constitute food for human consumption
Artificial lighting systems used in greenhouse operations to promote plant growth, including replacement bulbs for such lighting systems
Automatic door closures designed for holding animals in stalls
Automatic gate openers
Automatic product handling and packaging systems that place seedlings or cuttings in plastic wrap or other containers
Automatic travelling sprinklers that are designed for use in greenhouses
Auxiliary generating equipment
Bale ejectors
Bale loaders
Bale ties and wire
Barn cleaners
Barn hay drying equipment
Barnlitter carriers
Barn scrapers
Batteries, oil filters, sparkplugs and other comparable items
Bee cages, queen bee cups for grafting bees and queen bee mailing cartons or boxes
Bees
Bell ring
Bin pilers
Bird scaring devices
Brooders and parts
Bulb crates and bulb planters
Bulbs
Bulk milk tanks for shipping milk
Calcium chloride
Calf weaners
Candlers, graders and cleaners
Capping melters
Carbon dioxide (CO2)
Carbon dioxide generators
Chemicals for making fertilizer
Chick boxes and staples
Chick enclosure materials
Chicken wire
C-K-A Gene Chick treatment in mash
Clay hooks
Cloches, including hot caps and hot tents
CO2 condensers and heat exchangers used as part of a greenhouse heating system
Comb honey wrappers and labels
Combines
Containers for honey to be sold to consumers
Containers that are designed for packaging fruits, vegetables, flowers, plants, nursery stock and other similar products for marketing
Conveyor belts that are designed for transporting pots in nurseries
Corn binders
Corn listers
Cranberry separators
Cream cans
Cream separators
Crop and farm product cleaning, sizing, grading and candling equipment and machines, including washers, brushers, baggers and dryers
Crop handling carts
Crop planting, harvesting, and picking machinery and equipment, and related parts
Crop protection netting systems that enclose a crop to protect it from predators
Crop pruners and clippers
Cultivators
Culverts and other water control devices designed for use in cranberry beds
Dairy brushes
Dairy filters
Dairy pails
Deer fencing
Devices and equipment designed to restrain or hold livestock for the purposes of servicing, branding, testing or treatment
Disinfectant mats
Disk harrows
Drag harrows
Drain tile
Drinking cups that are designed for use by fur farmers
Dusters, sprayers and applicators designed to dispense fertilizers, pesticides and insecticides
Egg beaters that are designed for use by cranberry farmers
Egg cartons and baskets
Egg crates
Egg immunization systems
Egg packing equipment
Electric fence and battery
Electric soil sterilizers
Electricity
Elevating towers designed for pruning, thinning, picking or wiring trees
Farm implements that are designed to till the ground or harvest crops
Farm seed drills and attachments
Feed augering systems
Feed grinders
Feeders and feeding systems for livestock, automatic or manual, including controls and any integrated hardware or software
Feeding dishes that are designed for use by fur farmers
Feed mixers and feed mixer wagons
Feeds
Fence posts
Fencing barbed wire and staples
Fertilizer mixers
Fertilizers
Fillers and flats
Flame throwers
Float valves
Flower sorting and bunching equipment
Food grinders that are designed for use by fur farmers
Forage harvesters
Foundations that are designed for use by beekeepers
Frames and end bars that are designed for use by beekeepers
Front end loaders
Fruit trees
Fruit tree weights
Gates and gate accessories that are designed for farm use
Glass, designed for use in greenhouses, that has a light transmission value of at least 89% and that is purchased in quantities of at least 500 square metres
Gopher baiting furrow machines
Grain augers or elevators
Grain grinders
Grain testers
Grain treaters
Greenhouse and nursery boilers used to provide heat for the greenhouse or nursery
Growing medium or rockwool
Halters and harnesses for horses
Hammer mills
Hanging gutters
Hardware for harnesses
Harrow carts
Hay and grain slings
Hay and manure forks
Hay baling twine (sisal)
Hay baling wire
Hay conditioners and dryers
Hay loaders
Hay mowers
Hay presses
Hay rakes
Hay stackers
Hay sweeps
Hay tarps
Hay tedders
Head gates that are designed as an accessory to cattle squeezers
Heat
Hen specks
Hoes
Hog wire
Honey extractors
Honey storage tanks
Honey uncapping plane
Honey wire mesh strainers
Hop pressers
Hormone sprays
Horse drawn vehicles
Horses, other than race horses
Horseshoes
Implements that are designed to be attached to a farm tractor
Incubators and parts
Insecticide, fungicide, disinfectant or weed control chemicals that are registered under the Pest Control Products Act (Canada)
Insulators and insulated handles for electric fences
Irrigation equipment
J Bolts for electric fences
Jute, plastic and paper bags
Kerosene burners and other portable fuel-based burners
Lactocase
Ladders specifically designed for fruit picking
Land packers
Lime spreaders
Livestock
Livestock chains
Livestock feeder pails
Livestock identification tags, including microchips for attachment to livestock for electronic livestock monitoring, whether or not the tags are impregnated with insecticides or pesticides
Livestock oilers
Livestock pens, cages and stalls
Livestock prefabricated loading chutes and handling systems
Livestock protectors designed to be attached to livestock to keep predators and pests away
Livestock semen
Manure separators
Manure spreaders
Mattocks
Metal nests
Milk bottle caps
Milk bulk tanks
Milk cans
Milk coolers
Milk storage tanks
Milk strainers and filters
Milking machines including any parts, motors and pumps
Milking parlour stalls
Milking parlour stools
Minerals, medications, nutrients and micronutrients for livestock feed
Mixers that are designed for use by fur farmers
Molasses
Moth traps
Mushroom bin loaders and unloaders, including the reel, pump and screen systems
Mushroom house boilers
Natural gas heating systems used to provide heat for greenhouses or nurseries
Natural gas, propane and fuel oil, to the extent that these would otherwise be taxable under the Act
Naturally occurring predators and parasites raised for use as biological control agents to control specific insect, mite and weed species
Nest eggs
Nose bars that are designed as accessories to cattle squeezers
Nose plates
Nursery carts
Nut dryers
Oat crushers
On-farm incineration units
Peat pots
Pest control paper
pH electroconductivity meters
Picking bags
Pick-ups that are designed as an attachment to combine, hay loader or baler
Picks
Pigeon feed
Plastic bale and silage bags
Plastic or polyethylene sheets, heavy gauge and UV stabilized, purchased in rolls of at least 100 feet in length and 20 feet in width
Ploughs
Pollen substitutes
Pollinators
Post drivers and post augers
Potato bin pilers, conveyors and elevators
Potato bin unloaders
Potato diggers
Potato sack loaders
Potato seed cutters
Potting machines and attachments
Poultry
Poultry crates
Poultry feeders, waterers, troughs and coordinated cage systems used in conjunction with feeders
Poultry laying cages when integrated with poultry feeding, watering and egg gathering systems
Poultry netting
Prefabricated livestock flooring slats
Pressure cleaners
Propane and natural gas used directly to produce heat for drying grain and other agricultural produce
Pruning shears and clippers, including pneumatic pruning shears and clippers, but not including air compressors
Qualifying all-terrain vehicles that have an engine with a displacement of 200 cc or greater and that are equipped at the time of sale with a carrying rack, platform or cargo box
Rakes
Raspberry picks
Refrigeration equipment used for the cooling or cold storage of farm products
Rock pickers
Rod weeders
Roller mills
Rolling benches
Rototillers and rotovators
Rubber mats designed for use in livestock stalls
Salt
Salt mineral blocks
Sand used for livestock bedding
Sanitizing products and chemicals
Sawdust and shavings
Scales specifically designed to weigh livestock
Scythes and blades
Sections, that are designed for use by beekeepers
Seed cleaners
Seedling plug extractors
Self-contained dryers for grain and other agricultural produce
Self-powered irrigators
Self-propelled bale wagons
Shade curtains
Sheep clippers
Shovels, spades, picks and mattocks
Sickles
Silo blowers
Silo covers and silage covers
Silo unloaders
Silos
Singletrees and irons
Slicers that are designed for use by fur farmers
Snaths and blades
Soil anchors
Soil mixers
Stakes for berry and other food crops requiring support
Stakes, posts and poles designed for supporting crops or trees, including related ties and clips
Stainless steel wash tanks
Stall dividers
Staples and eyelets that are designated for use by beekeepers
Steam generator to sterilize soil
Steel granaries
Steel pipe livestock guards
Sterilizing equipment and sterilizing chemicals
Storage tanks, in industrial use sizes, used to store fuel, liquid fertilizer, manure and similar items for farm use
Straw, hay and ensilage
Sugar beet toppers and windrowers
Swathers
Tapeners
Teat dilators
Teat dip
Thermal curtains used in greenhouse operations to retain heat
Thermometers, hydrometers, barometers and other climatic and wind monitoring equipment and accessories, but not including any related computer hardware or software
Threshing machines
Tires
Tractors and tractor parts
Treatment products for on-farm use to promote the decay of organic materials in water in ponds, dug-outs and reservoirs
Treatment products to reduce gas and bacteria levels in litters, bedding and manure
Tree diggers that are designed for nursery operations
Tree pruning paint
Tree wound and grafting compound
Trees, shrubs and plants
Turkey guards and saddles
Ventilators and air conditioning equipment
Veterinary supplies, including insemination equipment, calf pullers, castration equipment, debeakers, dehorners, dilators, medication, restraints, sterilization equipment and syringes
Vibroblenders
Vine beaters
Wagon boxes, tanks and other vehicles that are not self-propelled
Water bowls that are normally part of stanchions
Water heaters
Water warmers
Waterers and watering systems for livestock, automatic or manual, including controls and any integrated hardware or software
Weed and tree sprayers
Wheat germ oil
Wheeled hoes
Winches that are designed as a tractor attachment
Wind machines designed for use outdoors for the prevention of frost damage to crops
Wire and wiring tack for frames that are designed for use by beekeepers
Wire mesh for cages
Wire or netting for fences
Wire stretchers
Wire tree guards.
Parts, repairs and accessories that are specifically designed for the manufacture, repair and replacement of the above listed tangible personal property, but not including items of tangible personal property suitable for use as parts by reason only of the general nature of their design and manufacture.
The definition of the expression "fishing apparatus" contained in section 73 (1) (d) of the Act is deemed to include the following items:
Anchors, anchor chain, links and shackles
Barometers
Batteries for boat only
Bilge pump (necessary for pumping out water resulting from ice for fish)
Black trawl anchors (halibut fishing)
Bluestone
Boat
Boat bailers (hand bailer)
Bolts (when part of boat)
Buoys (indicate location of net)
Burlap net covers (covers net when not in use)
Chocks (attached to boat for guiding lines)
Charts and navigating instruments
Connectors (part of fishing gear)
Depth sounders
Dinghy
Direction finders
Electronic monitoring equipment used to monitor fishing activities
Engines for boats
Fast eye block
Fish hooks, sinkers, jigs, and plugs (lures), spoons and spoon metal
Fish nets and netting, fish lines
Fish tags and tagging equipment
Floats for net
Fog bells and horns
Gaffs
Galvanized steering blocks
Lamps (6, 12, and 32 volts only)
Loose hook block
Navigation lights and port lights (boat window)
Net dye
Otter trawl leather (part of net)
Paint (if for boat)
Plastic wood and putty
Propellers
Pumps (water and fuel)
Quadrants (part of rudder)
Radio and radio equipment (if component part of boat but not for personal use)
Radiotelephones (ship to shore)
Refrigeration equipment designed for installation on boat
Rope fenders
Rope (if used on boat or net)
Row locks
Sails, oars
Ship clocks (if component part of boat but not for personal use)
Signal bells
Sink and toilets for boat only
Sinkers
Snatch blocks (for holding net lines)
Steering wheels
Stoves and oil burners
Tarpaulins and hatch covers
Tide tables
Trolling bells
Trolling blocks (guiding fish line)
Trolling springs and swivels (part of line)
Turnbuckles (tightening wires on mast)
Winch (gurdies).
(2) As an exception, hoop house frames are not exempt under subsection (1) regardless of the purpose for which they are purchased or leased.
[am. B.C. Regs. 287/82, s. 2; 99/84; 64/85, s.1; 79/87, s. 1; 273/87; 344/87, s. 1; 233/88; 149/90;
153/92, s. 1; 106/93, s. 1; 175/94, s. 1; 120/95, s. 1; 225/95; 120/96, s. 1; 118/97, s. (a); 94/98, s. 1;
95/99, s. 1; 116/2000, s. 1; 30/2002, s. 1; 55/2003, s. 1; 55/2004, ss. 1 and 2; 45/2005, s. 1; 31/2006; 108/2006, s. 1; 36/2008, s. 3; 30/2009, s. 2.]
Children's clothing and footwear exemptions
2.22 "Children's clothing" means children's dresses, suits, coats, skirts, trousers, blouses, shirts, underwear, sweaters, pajamas up to and including girls' Canada Standard Size 16 and boys' Canada Standard Size 18; children's hose up to and including girls' size 9 1/2 and boys' size 10; children's gloves up to and including girls' and boys' size7; children's hats in sizes and styles designed to be worn by children under12. "Children's footwear" means footwear up to and including girls' and boys' size 6.
Children's clothing and footwear also includes clothing of the type specified in this regulation and footwear when purchased for any person who is certified to be under 15 years of age.
[am. B.C. Regs. 142/61; 60/66; 182/86.]
Definitions of magazines, periodicals and newspapers
2.27 The following types of publications are excluded from the definitions of "magazines", "newspapers" and "periodicals" in section 1 of the Act:
(a) directories, programs, price lists, timetables, rate books, reports, albums, course calendars, date calendars, sports or recreation calendars, brochures and pamphlets;
(b) catalogues and similar publications whose primary purpose is to promote the sale or lease of tangible personal property, services or real property;
(c) a publication that is published for the same or similar purpose as a publication referred to in paragraph (a).
[en. B.C.Reg. 264/2000, s. 1.]
Determination of content of magazines or periodicals
2.28 (1) For the purpose of the definitions of "magazines" and "periodicals" in section 1 of the Act, the technical, literary, editorial and pictorial content includes
(a) maps, charts, photographs and diagrams that are related to, or are a part of, that content,
(b) the masthead, and
(c) the title page,
but does not include
(d) covers, indices, tables of contents, borders and duplicated or blank pages.
(2) For the purpose of the definitions of "magazines" and "periodicals" in section 1 of the Act, advertising and promotional content includes
(a) all advertisements, promotional material and promotional articles, irrespective of who bears the cost for the publication of the advertisement, promotional material or promotional article,
(b) all material and articles paid for or sponsored by a person who is not an owner or publisher of the magazine or periodical, and
(c) maps, charts, photographs, pictures and diagrams that are related to, or are a part of, the advertising and promotional content.
[en. B.C.Reg. 264/2000, s. 1.]
Determination of content of newspapers
2.29 (1) For the purpose of the definition of "newspapers" in section 1 of the Act, editorials, news and articles of local or common interest include
(a) maps, charts, photographs, pictures and diagrams that are related to, or are a part of, that content,
(b) the masthead,
(c) the title page,
(d) public service listings of events, activities or attractions for which no consideration of any kind is paid or exchanged and for which editorial control rests solely with the publisher,
(e) business market quotations,
(f) sports scores,
(g) movie, theatre and other reviews,
(h) weather forecasts,
(i) comics,
(j) crosswords and similar puzzles,
(k) horoscopes,
(l) television listings, and
(m) letters to the editor,
but do not include covers, indices, tables of content, borders and duplicated or blank pages.
(2) For the purpose of the definition of "newspapers" in section 1 of the Act, advertising and promotional content includes
(a) all advertisements, promotional material and promotional articles, irrespective of who bears the cost for the publication of the advertisement, promotional material or promotional article,
(b) all material and articles paid for or sponsored by a person who is not an owner or publisher of the newspaper, and
(c) maps, charts, photographs, pictures and diagrams that are related to, or are a part of, the advertising and promotional content.
[en. B.C.Reg. 264/2000, s. 1; am. B.C. Reg. 439/2004, s. 1.]
Calculation of content
2.30 (1) The calculation of the content of a magazine or periodical for the purposes of the definitions of "magazines" and "periodicals" in section 1 of the Act must be made in the following manner:
(a) determine the area of all the pages of the publication;
(b) determine the area of the content described in section 2.28 (1) (d);
(c) subtract the area determined in paragraph (b) from the area determined in paragraph (a);
(d) determine the area of the technical, literary, editorial and pictorial content other than advertising and promotional content;
(e) calculate in percentage terms the proportion that the area determined under paragraph (d) is to the area that results from the calculation under paragraph (c).
(2) The calculation of the content of a newspaper for the purposes of the definition of "newspapers" in section 1 of the Act must be made in the following manner:
(a) determine the area of all the pages of the publication;
(b) determine the area of the content described in section 2.29 (1) (d);
(c) subtract the area determined in paragraph (b) from the area determined in paragraph (a);
(d) determine the area of the editorials, news and articles of local or common interest, other than advertising and promotional content;
(e) calculate in percentage terms the proportion that the area determined under paragraph (d) is to the area that results from the calculation under paragraph (c).
[en. B.C.Reg. 264/2000, s. 1.]
Definition: vitamins and dietary supplements
2.31 "Vitamins and dietary supplements" means tangible personal property manufactured in liquid, powdered, granular, tablet, capsule, lozenge or pill form when purchased as dietary supplements or adjuncts for human consumption.
[en. B.C. Reg. 372/79, s. 2.]
Definition: diabetic supplies
2.32 "Diabetic supplies" means syringes, needles, autolets, glucose monitoring units and diabetic testing materials purchased by or on behalf of a diabetic for his own use.
[en. B.C. Reg. 110/81.]
Definition: ostomy supplies
2.33 "Ostomy supplies" means material, equipment and supplies
(a) designed and intended for use by persons who, consequent on surgery, are in the permanent condition of being able to dispose of their bodily wastes only through a surgically constructed bodily orifice, and
(b) purchased by or on behalf of those persons for their own use, but does not include such items as skin creams, deodorants, cleaning materials or any other products that by their general nature are generally used for other purposes or by other persons.
[en. B.C. Reg. 372/79, s. 2.]
Telephone services
2.34 (1) Telephone services received at a coin operated telephone, where the services are paid for by coin at the time of using the services, are subject to tax as follows:
| Amount of Charge | Tax | |||||
| Less than | $0.65 | 0¢ | ||||
| $0.65 | to | 1.35 | 5¢ | |||
| 1.40 | to | 2.05 | 10¢ | |||
| 2.10 | to | 2.75 | 15¢ | |||
| 2.80 | to | 3.45 | 20¢ | |||
| 3.50 | to | 4.20 | 25¢ | |||
| 4.25 | to | 4.90 | 30¢ | |||
| 4.95 | to | 5.60 | 35¢ | |||
| 5.65 | to | 6.35 | 40¢ | |||
| 6.40 | to | 7.05 | 45¢ | |||
| 7.10 | to | 7.75 | 50¢ | |||
| 7.80 | to | 8.45 | 55¢ | |||
| 8.50 | to | 9.20 | 60¢ | |||
| 9.25 | to | 9.90 | 65¢ | |||
| 9.95 | to | 10.60 | 70¢ | |||
(2) Charges in excess of $10.60 shall be taxed in accordance with an extension of the table in subsection (1).
[en. B.C. Reg. 106/93, s. 2.]
Definition: explosive supplies
2.36 For the purposes of section 76 (1) (f) of the Act, "explosive supplies" means blasting agents, blasting supplies, and accessories such as blasting caps, boosters, plastic cap holders, electric starters, squibs, shunt connectors, safety fuse assemblies, igniter cord connectors, hot wire lighters, and primacord connectors and closing tubes.
[en. B.C. Reg. 187/89, s. 1; am. B.C. Reg. 242/2001, s. 1.]
Aquaculture exemption
2.37 (1) In this section "primary aquaculture product" means an aquatic animal or aquatic plant grown or raised for sale but does not include a processed or manufactured product or an aquarium specimen.
(2) For the purpose of section 73 (c) of the Act, "bona fide aquaculturist" means a person carrying on an aquaculture business who has
(a) an aquaculture licence issued under section 13 (5) of the Fisheries Act, and
(b) a certificate valid for 12 months from its effective date issued by the Aquaculture and Commercial Fisheries Branch, Ministry of Agriculture and Fisheries, certifying that the person
(i) during the immediately preceding calendar year produced primary aquaculture products with a gross market value of production at the producer's place of production of not less than $7 500, or
(ii) is adhering to a development plan approved by the Aquaculture and Commercial Fisheries Branch containing
(A) a description of the type of primary aquaculture production that will occur, and
(B) an estimate that the gross market value of primary aquaculture production at the producer's place of production is expected by that person to exceed $7 500 in the calendar year of the approval of the development plan or in one of the 4 calendar years following that approval.
(3) Repealed. [B.C. Reg. 32/90.]
(4) For the purpose of section 73 (c) of the Act, the following tangible personal property is prescribed:
(a) declumping machines;
(b) washing and grading machinery and equipment;
(c) debyssing machines;
(d) seaweed and kelp harvesters;
(e) high pressure washers;
(f) pH meters;
(g) dissolved oxygen meters;
(h) temperature and salinity meters;
(i) temperature chart recorders;
(j) automatic analyzers for soil or water;
(k) microscopes and laboratory glassware;
(l) automatic feeders;
(m) chemicals and pharmaceuticals;
(n) seed collectors, seed bivalves, seed, eggs, smolts and fry;
(o) fabric and mesh;
(p) water filters;
(q) netting for cages and pens;
(r) auxiliary generators and pelton wheels;
(s) egg graders and incubators;
(u) fish feed;
(v) aluminum, galvanized steel, plastic, polyethylene and concrete floats;
(v.1) styrofoam, barrels, whole logs and other items used for flotation;
(w) rope, chain and cable;
(x) fish tanks;
(y) aeration equipment;
(z) alarm equipment to alert of changes in water conditions;
(aa) anti-foulants used on nets and boats;
(aa.1) ladder racks;
(aa.2) artificial lighting systems used in hatchery and nursery operations to promote plant growth, including replacement bulbs for such lighting systems;
(aa.3) tumblers for oyster grow-out operations;
(aa.4) aquacultural planting and harvesting machines and parts;
(aa.5) predator traps;
(aa.6) steam generators for cleaning hatcheries and nurseries;
(bb) booms for lifting nets out of the water;
(cc) centrifuges;
(dd) electric timing devices and controls for feeders and water flow;
(ee) fish tagging machines and tags;
(ff) float valves to regulate water pressure;
(gg) disease identification and monitoring kits;
(hh) kelp cleaning and processing machinery;
(ii) minerals, medications and nutrients for fish;
(jj) trays suspended from floats and used for growing oysters;
(kk) water conditioning and sterilizing equipment;
(ll) net pen units;
(mm) a boat not exceeding 20 m in length used solely for an aquaculture purpose;
(nn) a motor for a boat referred to in paragraph (mm);
(oo) parts for tangible personal property referred to in paragraphs (mm) and (nn);
(oo.1) a qualifying all-terrain vehicle that has an engine with a displacement of 200 cc or greater and that is equipped at the time of sale with a carrying rack, platform or cargo box;
(pp) bags and containers for transporting or packaging aquaculture products;
(qq) winches, hooks and grapnels for placing and retrieving aquaculture equipment;
(rr) polyethylene shellfish culture bags;
(ss) remote setting tanks used in the production of aquaculture products;
(tt) shackles and thimbles for use in joining ropes, cables and chains in mooring systems;
(uu) dip nets and dip net bags;
(vv) closed bag containment systems, including pumps and waste management equipment that are integrated into the systems;
(ww) pumps used to pump water into or out of fish enclosures;
(ww.1) artificial seaweed;
(ww.2) scallop ear hanging equipment, including ear hanging pins;
(ww.3) automated shellfish nursery systems and parts;
(ww.4) pearl nets, mussel socking and other netting used for shellfish seed and grow outs.
[en. B.C. Reg. 173/85, s. 1; am. B.C. Regs. 100/86; 79/87, s. 3; 240/87, s. 1; 24/88; 156/88; 32/90; 167/90; 374/90;
153/92, s. 2; 175/94, s. 2; 95/99, s. 2; 116/2000, s. 2; 55/2003, s. 2; 55/2004, s. 3; 45/2005, s. 2; 36/2008, s.4.]
Depreciated values
2.38 (1) For the purposes of section 19 (1) of the Act and this section, "tangible personal property" means aircraft, railway rolling stock, vehicles, vessels, equipment, furnishings or fixtures.
(2) The depreciated value of tangible personal property shall be determined in accordance with the following formula:
| PP — [PP x d] |
where
PP = the purchase price of the property;
d = the depreciation determined as the aggregate of the following:
(a) for aircraft, 25% for each year or 2.0833% for each month;
(b) for railway rolling stock, 10% for each year or 0.8333% for each month;
(c) for vehicles, 30% for each year or 2.5% for each month;
(d) for vessels, 15% for each year or 1.25% for each month;
(e) for equipment, furnishings or fixtures not described in paragraph (a), (b), (c) or (d), 20% for each year or 1.667% for each month
for which the tangible personal property was used by the person liable to pay tax under the Act.
(3) Each item of equipment mounted on
(a) a vehicle,
(b) railway rolling stock, or
(c) a vessel
shall be classified for the purposes of subsection (2) as a separate item.
[en. B.C. Reg. 84/90.]
Temporary use
2.39 For the purpose of section 12 (3) (a) of the Act, the prescribed number of days is
(a) 41 days for barge mounted cranes that have a lifting capacity of greater than 100 metric tonnes if those cranes are relieved, under the Vessel Duties Reduction or Removal Regulations (Canada), SOR/90-304, from federal customs duties, or
(b) 6 days for all other tangible personal property.
[en. B.C. Reg. 126/2001, s. 1.]
Parking
2.40 (1) In this section:
"accommodation" means accommodation within the meaning of the Hotel Room Tax Act;
"highway" means a highway as defined in the Municipal Act;
"parking area" means, in respect of land, the portion of the land and any improvements on the land that are used, available or designed for the parking of motor vehicles;
"residential dwelling unit" has the same meaning as in the Greater Vancouver Transportation Authority Act.
(2) Repealed. [B.C. Reg. 104/2002, s. (b).]
(3) For the purposes of section 61 (5) (a) of the Act, "residential parking" means parking on a parking area that
(a) is located in or in close proximity to the building in which the person parking the vehicle resides, and
(b) is used by the person as the person's primary parking area while the person is at the person's residence.
(4) The following parking sites are prescribed for the purposes of section 61 (5) (b) of the Act:
(a) a single vehicle parking space on a public street where the purchase price for the parking right for the space is to be paid into a meter;
(b) a single vehicle parking space where
(i) the space is made available to a person purchasing accommodation for the period of accommodation purchased by that person, and
(ii) the purchase price for the parking right for the space is included, without being separately identified or negotiated, in the amount charged to that person for the accommodation;
(c) a single vehicle parking space where
(i) the parking right for the space is made available to a person as a result of that person purchasing or leasing space in a building that is located above or in close proximity to the parking space, and
(ii) the purchase price for the parking right for the space is included, without being separately identified or negotiated, in the price for the space in the building;
(d) a parking site at which a vehicle is parked solely because the condition of the vehicle is such that it cannot be driven safely;
(e) a parking site
(i) in respect of which a person has purchased a parking right for a period of not less than 28 consecutive days, and
(ii) at which a vehicle that is owned or leased by the person and that is operated solely in the course of the person's business, is parked when it is not being operated in the course of that business;
(f) a parking site in respect of which a person who is in the business of leasing vehicles as lessor has purchased a parking right that is exercised solely for the parking of some or all of the person's inventory of vehicles while they are not being leased.
[en. B.C. Reg. 329/93; am. B.C. Regs. 104/2002; 202/2003.]
Definition: passenger vehicle
2.41 "Passenger vehicle" includes
(a) a truck that is or is smaller than a 3/4 ton truck,
(b) a van that is or is smaller than a 3/4 ton van,
(c) a station wagon as defined in the Motor Vehicle Act, and
(d) a motor cycle, as defined in the Motor Vehicle Act, with an engine capacity of more than 250 cc
but does not include
(e) a truck that is larger than a 3/4 ton truck,
(f) a van that is larger than a 3/4 ton van,
(g) a camperized van that is designed to be used primarily for accommodation during travel or recreation and that contains built-in sleeping facilities, a built-in stove and one or more of the following:
(i) a built-in sink;
(ii) a built-in refrigerator;
(iii) a built-in cooler,
(h) a motor home as defined in the Motor Vehicle Act,
(i) a bus as defined in the Motor Vehicle Act,
(j) an ambulance,
(k) a hearse, and
(l) a motor cycle, as defined in the Motor Vehicle Act, with an engine capacity of 250 cc or less.
[en. B.C. Reg. 369/93.]
Modification to accommodate a disability
2.42 (1) In this section, "qualifying vehicle" means a motor vehicle that
(a) meets one of the following criteria:
(i) the vehicle has been manufactured or modified to facilitate the placing or transportation of a wheelchair in the vehicle without having to collapse the wheelchair;
(ii) the vehicle is equipped with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability, and
(b) has not, since being manufactured, modified or equipped as contemplated in paragraph (a), been acquired by a person at a retail sale or a retail lease.
(2) For the purposes of section 6 (1) and (3) of the Act, the purchase price of a qualifying vehicle that is acquired at a retail sale and on which tax applies shall be determined in accordance with subsection (3).
(3) If a qualifying vehicle is acquired at a retail sale, the purchase price of the vehicle is deemed to be
(a) the purchase price of that vehicle as defined in section 1 of the Act, less
(b) the portion of the purchase price that
(i) can reasonably be attributed to those special features or modifications of the vehicle the sole purpose for which is to
(A) facilitate the vehicle's use by, or the transportation of, an individual using a wheelchair, or
(B) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability, and
(ii) is shown separately on the invoice recording the sale.
(4) Subsections (2) and (3) do not apply when the qualifying vehicle is resold.
(5) For the purposes of section 20 (1) of the Act, the lease price or tax rate value of a qualifying vehicle that is acquired at a retail lease and on which tax applies shall be determined in accordance with subsection (6) if
(a) the lease is entered into after March 30, 1999, and
(b) the lease is for a period of 12 months or more.
(6) If a qualifying vehicle referred to in subsection (5) is acquired at a retail lease, the lease price or tax rate value of the vehicle is deemed to be
(a) the lease price as defined under section 1 of the Act or the tax rate value as defined under section 20 (2) of the Act, less
(b) the portion of the lease price or tax rate value that
(i) can reasonably be attributed to those special features or modifications of the vehicle the sole purpose for which is to
(A) facilitate the vehicle's use by, or the transportation of, an individual using a wheelchair, or
(B) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability, and
(ii) is shown separately on the lease agreement.
(7) Subsections (5) and (6) apply to
(a) all lease payments made by the lessee for the duration of the lease, and
(b) a variation or renewal of the lease for that same motor vehicle by the same lessee.
(8) If, at a later time, a lessee under a lease referred to in subsections (5) to (7) exercises an option under the lease agreement, or under an agreement for the variation or renewal of the lease, to purchase the motor vehicle, the vehicle is deemed, for the purposes of subsections (2) to (4), to be a qualifying vehicle.
(9) Subsections (5) to (8) do not apply to any subsequent leases of the motor vehicle to other lessees.
(10) Sellers and lessors of qualifying vehicles must retain the written record referred to in subsections (3) (b) (ii) and (6) (b) (ii) to substantiate the reduction in the purchase or lease price.
[en. B.C. Reg. 260/99, s. 2.]
Passenger vehicle
2.42.1 Where a passenger vehicle is
(a) acquired for business use, and
(b) modified by the addition of equipment or apparatus to enable the vehicle to be used for a specific business purpose and the modifications are not related to the operation of the vehicle as a vehicle,
the rate of tax determined by section 6 (3), 37 (2) or 20 (1) of the Act shall be based on what would have been the purchase price or tax rate value of the vehicle if the modifications referred to in paragraph (b) had not been made.
[en. B.C. Reg. 98/95, s. 1.]
Taxable service exemptions
2.45 The following tangible personal property is prescribed for the purposes of paragraph (b) of the definition of "taxable service" in section 1 of the Act:
(a) tangible personal property that a vendor who is registered under the Act holds for lease or resale purposes;
(b) tangible personal property that is exempt from tax under the Act, other than the following:
(i) household goods and equipment referred to in section 3.12;
(ii) a vehicle referred to in section 3.12.1;
(iii) an aircraft referred to in section 3.12.2;
(iv) tangible personal property referred to in section 77 (d) and (e) of the Act;
(v) tangible personal property in respect of the purchase or lease of which no tax was payable under section 3.14 or 3.14.1;
(vi) a boat or travel trailer referred to in section 79 (3) of the Act;
(vii) tangible personal property exempt from tax under Division 13;
(c) an animal;
(d) a manufactured home that is a family residential dwelling unit;
(e) fixtures, other than
(i) travelling cranes and hoists that
(A) run on rails or tracks attached to a building, and
(B) are attached to rails or tracks by flanged wheels, or rest on rails or tracks by their own weight, and
(ii) fixtures, or parts of fixtures, that have been removed from the site at which they were installed or attached;
(f) the following tangible personal property if designed for household use:
(i) refrigerators;
(ii) stoves;
(iii) ovens;
(iv) clothes washers;
(v) clothes dryers;
(vi) dish washers;
(vii) freezers;
(viii) vacuums;
(ix) rug cleaners;
(x) rugs and carpets;
(xi) curtains and draperies;
(xii) sewing machines;
(g) clothing and footwear;
(h) a portable building that is exempt under section 3.30 (2);
(i) a multijurisdictional vehicle;
(j) a trailer that is used for interjurisdictional commercial purposes;
(k) software.
[en. B.C. Reg. 333/93; am. B.C. Regs. 98/95, s. 3; 548/95, s. 1; 116/2000, s. 3; 30/2002, s. 2;
105/2002, s. 1; 305/2003, s. 1; 439/2004, s. 2; 32/2006, s. 1.]
Exempt taxable services
2.46 The following taxable services are prescribed for the purposes of section 42 (2) (a) of the Act:
(a) service provided by way of motor vehicle towing or battery boosting but not including battery recharging;
(a.1) service provided by way of motor vehicle roadside tire changing;
(b) service provided by way of a diagnosis, test, safety inspection or estimate when no installation, assembly, dismantling, adjustment, repair, restoration, reconditioning, refinishing or maintenance is done;
(c) service provided to or in respect of the person of an individual;
(c.1) services provided to install tangible personal property as part of a window display service;
(d) the erecting, constructing, assembling or dismantling of scaffolding, formwork, hoarding or other temporary protective coverings, construction cranes or temporary power or other utilities used in the construction, demolition, adjustment, repair, renovation, restoration or maintenance of real property or a fixture;
(e) service provided in respect of tangible personal property that was
(i) brought into the Province for the sole purpose of being installed, assembled, dismantled, repaired, adjusted, altered, restored, reconditioned, refinished or maintained, and
(ii) immediately after installation, assembly, dismantling, repairing, adjustment, alteration, restoration, reconditioning, refinishing or maintenance, transported outside the Province for use outside the Province;
(f) service provided to a motor vehicle referred to in section 3.13 (2) after the first sale referred to in that subsection but before the resale referred to in that subsection;
(g) cleaning services;
(h) Repealed. [B.C. Reg. 32/2006, s. 2.]
(i) service provided for the sole purpose of modifying a motor vehicle to adapt it to facilitate its use by, or the transportation of, an individual using a wheelchair.
(j) and (k) Repealed. [B.C. Reg. 32/2006, s. 2.]
[en. B.C. Reg. 333/93; am. B.C. Regs. 360/95; 52/98, s. 1; 260/99, s. 3; 116/2000, s. 4; 32/2006, s. 2; 33/2007, s. 1.]
Classes of persons exempted (taxable service)
2.47 The following persons are prescribed for the purposes of section 42 (2) (b) of the Act:
(a) a person who resells the taxable service to another person if the ultimate purchaser of the taxable service pays tax under section 40 or 41 of the Act on the purchase price paid by that purchaser for the taxable service;
(b) a corporation purchasing a taxable service from a related corporation, as that term is defined in section 3.14.
[en. B.C. Reg. 333/93.]
Taxable service on reserve
2.48 (1) In this section "band", "Indian" and "reserve" have the same meaning as in section 2 of the Indian Act (Canada).
(2) No tax is payable under section 40 of the Act in respect of a taxable service purchased by an Indian or a band if the whole of the taxable service is provided on a reserve.
[en. B.C. Reg. 333/93.]
Definitions: associate, etc.
2.49 (1) In section 36 or 37 of the Act, "associate" includes an agent, partner, joint venturer, related individual and associated corporation.
(2) In subsection (1), "related individual" and "associated corporation" have the same meaning as in section 103 of the Act.
[en. B.C. Reg. 157/95.]
Fixtures not included in tangible personal property
2.52 (1) Subject to subsection (2), the following fixtures are excluded from the definition of "tangible personal property" in section 1 of the Act:
(a) machinery, equipment or apparatus that is installed in or attached to a building, structure or land for the purpose of
(i) heating, air conditioning or lighting a building or structure,
(ii) sewage disposal for a building or structure, or
(iii) lifting persons or freight within a building or structure by elevator or escalator;
(b) machinery, equipment or apparatus that
(i) is of such a size that it must be constructed on the site where it is to be used,
(ii) by its nature or design, would normally be expected to remain on the site at which it is constructed for the useful life of the machinery, equipment or apparatus,
(iii) does not run on rails or tracks, or does not otherwise move around on or from the site at which it was constructed, and
(iv) cannot be moved from the site at which it is constructed without
(A) dismantling the machinery, equipment or apparatus, or
(B) dismantling or causing substantial damage to, the building or structure in which it is installed or to which it is attached.
(2) A fixture, or a part of a fixture, that, removed from the site at which it is installed or attached, is not excluded from the definition of "tangible personal property" while it is so removed.
[en. B.C. Reg. 264/2000, s. 2; am. B.C. Reg. 305/2003, s. 2.]
Inheritance
2.53 For the purposes of section 11 (4.2) (c) of the Act, section 11 (4.1) of the Act does not apply to tangible personal property transferred as part of the distribution of a deceased's estate.
[en. B.C. Reg. 439/2004, s. 3.]
Definition: short term rental vehicles
2.55 (1) "Short term rental vehicle" means a vehicle that, during the applicable vehicle licence year,
(a) is leased primarily for periods of 28 days or less, and
(b) is made available to the public for leasing referred to in paragraph (a).
(2) This section is retroactive to February 22, 2006.
[en. B.C. Reg. 107/2006.]
Definition: biodiesel fuel
2.56 "Biodiesel fuel" means a fuel that is made up of mono-alkyl esters of long chain fatty acids derived from plant or animal matter.
[en. B.C. Reg. 148/2008, s. 1.]
| 1. | Section 33 (1) of R.S.B.C. 1979, c. 388 was repealed by S.B.C. 1985-32-11. |
Division 3 - Application of Tax
Calculation of tax
3.2 The expression "as part of one transaction" occurring in section 18 (2) of the Act shall not include a transaction or transactions where several articles are purchased from different departments of the same vendor.
Use of registration certification by vendor
3.4 (1) If a person who sells tangible personal property at a sale in British Columbia is not required to collect tax from the person acquiring the tangible personal property because
(a) the sale is not a retail sale, or
(b) the sale is a retail sale and
(i) the tangible personal property is exempt from tax under section 76 (1) (b), (c), (c.1) or (d) of the Act or section 3.20 (1) (u) or (2), 3.26 (2), 13.10.3 (2) or 15.1 of this regulation, or
(ii) the purchaser is exempt from tax in relation to the sale under section 78 (1) of the Act,
the person selling the tangible personal property must
(c) record on the invoice or other similar document the number of the registration certificate issued under section 92 (2) of the Act to the person acquiring the tangible personal property, or
(d) obtain from the person acquiring the property a completed Certificate of Exemption in a form authorized by the commissioner.
(2) A person who in the Province leases tangible personal property to a lessor is not required to collect tax from the lessor and shall record on the invoice or other similar document the number of the registration certificate issued to the lessor under section 92 (2) of the Act.
[en. B.C. Reg. 244/90, s. 1; am. B.C. Regs. 105/2002, s. 2; 145/2005, s. 1; 36/2008, s. 5; 148/2008, s. 2.]
Animals and plants
3.9 (1) Sales of any form of animal life, of a kind the products of which ordinarily constitute food for human consumption, are exempt from the application of the tax.
(2) Sales of any plants or trees that produce food for human consumption are exempt from the application of the tax.
Animal feed
3.10 Sales of feed for any form of animal life, of a kind the products of which ordinarily constitute food for human consumption or are to be sold in the regular course of business, are exempt from the application of the tax.
New resident's effects
3.12 (1) Household goods and equipment brought into British Columbia by an individual for the individual's sole personal use are exempt from tax under section 11 of the Act if it is shown to the satisfaction of the commissioner that the goods and equipment
(a) arrived in British Columbia within 6 months of the individual becoming a resident of British Columbia, or would have so arrived if it was not for circumstances that made it impractical for the individual to have brought them in within that time, and
(b) are owned, physically possessed and used by the individual for at least 30 days before the individual became a resident of British Columbia.
(2) Approval is given for the remission of the obligation that an individual pay tax under section 11 of the Act on household goods and equipment brought into British Columbia between the date this subsection comes into force and 6 years before that date provided, within 6 years of the date on which the goods and equipment were brought into British Columbia, it is shown to the satisfaction of the commissioner that the goods and equipment
(a) arrived in British Columbia within 6 months of the individual becoming a resident of British Columbia, or would have so arrived if it was not for circumstances that made it impractical for the individual to have brought them in within that time, and
(b) are owned, physically possessed and used by the individual for at least 30 days before the individual became a resident of British Columbia.
(3) Repealed. [B.C. Reg. 220/2010, Sch. 2, s. 2.]
[en. B.C. Reg. 100/96; am. B.C. Regs. 259/99, s. 1; 220/2010, Sch. 2, s. 2.]
Exemption for vehicles purchased by out-of-Province based residents
3.12.1 (1) In this section, "vehicle" and "vehicle registration legislation" have the same meaning as in section 5.18(1).
(2) A vehicle that
(a) is purchased
(i) primarily for use outside the Province, and
(ii) where the purchaser is an individual, by a person who is not resident in the Province,
(b) will not be registered or licensed pursuant to the vehicle registration legislation except for the purpose of removing it from the Province under an interim vehicle licence issued under section 12.01 of the regulations pursuant to the Motor Vehicle Act, and
(c) will not be used for a business purpose in the Province
is exempt from the application of the tax.
(3) On the sale of a vehicle described in subsection (2), the purchaser and the vendor shall complete a form specified by the commissioner.
(4) All forms completed by a vendor and purchaser under this section during a reportable period referred to in section 5.2 shall, within 23 days after the end of the reportable period, be delivered by the vendor to the commissioner with the vendor's return for that reportable period.
[en. B.C. Reg. 64/85, s. 4; am. B.C. Regs. 344/87, s. 2; 57/92, s. 1; 33/2007, s. 2.]
Exemption for aircraft purchased by out-of-Province based residents
3.12.2 (1) An aircraft that
(a) is purchased
(i) primarily for use outside the Province, and
(ii) where the purchaser is an individual, by a person who is not resident in the Province, and
(b) will not be used for a business purpose in the Province
is exempt from the application of the tax.
(2) On the sale of an aircraft described in subsection (1), the purchaser and the vendor shall complete a form specified by the commissioner.
(3) Section 3.12.1 (4) applies also in respect of forms completed under this section.
[en. B.C. Reg. 64/85, s. 4; am. B.C. Reg. 22/93, s. 1.]
Motor vehicle refunds
3.13 (1) Where a motor vehicle is sold within the Province to a non-resident of the Province and the vehicle is subsequently taken out of the Province within 30 days of the date of such sale to be used primarily outside the Province, then the tax collected at the time of sale may be refunded by the minister on receipt of satisfactory evidence.
(2) Where a motor vehicle is sold within the Province, but the vehicle is subsequently resold within 7 days to another person, the first sale shall be deemed to be a sale for resale, and the tax paid by the purchaser in the first instance may be refunded by the minister on receipt of satisfactory evidence that the tax was wrongly paid.
(3) Where a motor vehicle is sold within the Province to a resident of the Province and the vehicle is subsequently taken out of the Province to another jurisdiction by the purchaser within 30 days of the date of such sale, to be used solely outside the Province, then the tax collected at the time of sale shall be refunded by the minister on receipt of evidence that the purchaser
(a) established residence in that other jurisdiction within 30 days of the date of the sale,
(b) was required to pay a retail sales tax on registration of the vehicle under the laws of that other jurisdiction, and
(c) purchased the vehicle on or after March 1, 1981.
(4) The minister, on evidence satisfactory to the minister, may refund tax paid by a purchaser of a motor vehicle if
(a) the motor vehicle is purchased within British Columbia by a non-resident of British Columbia,
(b) the motor vehicle is taken out of British Columbia within 6 months of the date of its purchase for use primarily outside the Province, and
(c) a retail sales tax is paid by the purchaser on registration of the motor vehicle under the laws of the jurisdiction to which the motor vehicle is taken.
[am. B.C. Regs. 85/81; 64/85, s. 5; 46/92.]
Dealer use vehicles
3.13.1 (1) In this section:
"dealer" means a person registered as a motor dealer under the Motor Dealer Act;
"dealer use vehicle" means a new or used motor vehicle that is
(a) readily available for sale or lease by the dealer, and
(b) used only in one or more of the following ways:
(i) by a dealer or an officer, salesperson or employee of the dealer for any purpose related to the dealer's business as a motor dealer;
(ii) by a dealer or an officer, salesperson or employee of the dealer for transportation between home and the dealer's place of business;
(iii) as a courtesy car;
"donated vehicle" means a new or used motor vehicle that is
(a) except while being used for a purpose described in paragraph (b), readily available for sale or lease,
(b) provided by the manufacturer or dealer, at his or her own expense, to organizers of or participants in a community event solely for use during the event,
(c) returned to the manufacturer or dealer at the conclusion of the event, and
(d) on return under paragraph (c), either returned to the resale or lease inventory of the manufacturer or dealer, or sold by the manufacturer or retailer;
"manufacturer" means a person who makes motor vehicles and sells them at wholesale to dealers for subsequent retail sale;
"parts delivery vehicle" means a new or used motor vehicle that is
(a) temporarily removed from a dealer's sale or lease inventory on or after February 19, 2003,
(b) used only by the dealer, or by an officer, salesperson or employee of the dealer, and
(c) used only to transport motor vehicle parts in the course of the dealer's business;
"shuttle vehicle" means a new or used motor vehicle that is
(a) temporarily removed from a dealer's sale or lease inventory on or after February 18, 2004,
(b) used only by the dealer, or by an officer, salesperson or employee of the dealer, and
(c) used only to transport the dealer's customers while the customer's vehicle is being serviced in the course of the dealer's business.
(2) For the purpose of the definitions of "dealer use vehicle" and "donated vehicle" in subsection (1), a vehicle is not readily available for sale or lease if the vehicle
(a) is dedicated to a specific use, including, for example, a vehicle used for racing or a tow truck, or
(b) is not usually left on the business premises of the dealer or manufacturer during normal business hours.
(3) In order to relax the strictness of the tax imposed by the Act, the amount of tax payable by
(a) a dealer in respect of a dealer use vehicle,
(b) a dealer or a manufacturer in respect of a donated vehicle,
(c) a dealer in respect of a parts delivery vehicle, or
(d) a dealer in respect of a shuttle vehicle
is a reduced amount of tax calculated in accordance with subsection (4) and payable monthly.
(4) The amount of tax payable by a dealer at the end of each calendar month in respect of a vehicle that is used as a dealer use vehicle, other than a courtesy car, must be calculated using the following formula:
| 1.75%(AVV x USERS x ATR) |
where
| AVV | = | the average value of all vehicles in the sale or lease inventory in which the dealer use vehicles are held, |
| USERS | = | the number of employees authorized to use dealer use vehicles, other than courtesy cars, during that calendar month, and |
| ATR | = | the tax rate applicable to the AVV under section 6 (3) of the Act. |
(5) The amount of tax payable by a dealer or manufacturer at the end of each calendar month in respect of a vehicle the dealer or manufacturer uses as a donated vehicle, or a vehicle that the dealer uses as a parts delivery vehicle or shuttle vehicle, or a dealer use vehicle that the dealer uses as a courtesy car, must be calculated using the following formula:
| 1.75%(AVV x NV x ATR) |
where
| AVV | = | the average value of all vehicles in the sale or lease inventory in which the donated vehicle, parts delivery vehicle, courtesy car or shuttle vehicle was held before being used as a donated, parts delivery or shuttle vehicle or courtesy car |
| NV | = | the number of vehicles used as donated, parts delivery or shuttle vehicles or courtesy cars during that calendar month, and |
| ATR | = | the tax rate applicable to the AVV under section 6 (3) of the Act. |
[en. B.C. Reg. 117/94; am. B.C. Regs. 180/2000; 55/2003, s. 3; 55/2004, s. 4; 374/2004; 440/2004.]
Transfers between parent and subsidiary corporations
3.14 (1) In this section:
"parent corporation" means a corporation which owns beneficially at least 95% of the outstanding shares of each class of the share capital of another corporation;
"related corporation" means a corporation which is associated with another corporation because that other corporation is
(a) its parent corporation,
(b) its wholly owned subsidiary, or
(c) another wholly owned subsidiary of the same parent corporation;
"wholly owned subsidiary" means a corporation at least 95% of the outstanding shares of each class of the share capital of which is beneficially owned by another corporation.
(2) Where tangible personal property is purchased by a corporation from a related corporation and
(a) tax was paid on the tangible personal property by a related corporation of either the purchaser or the seller, or
(b) except for the case described in section 3.14.2, no tax was payable by the seller on its purchase of the tangible personal property in British Columbia, or on its bringing or sending into British Columbia or receiving of delivery in British Columbia of the tangible personal property, as the case may be,
no tax is payable by the purchaser in respect of the acquisition as long as the seller and purchaser continue to be related corporations for a period of not less than 8 months after the date of the purchase.
(3) Where tangible personal property is leased by a corporation from a related corporation and
(a) tax was paid on the tangible personal property under section 5 or 11 of the Act by a related corporation of either the lessee or person granting the lease, or
(b) except for the case described in section 3.14.2, no tax was payable by the corporation granting the lease on its purchase of the tangible personal property in British Columbia, or on its bringing or sending into British Columbia or receiving of delivery in British Columbia of the tangible personal property, as the case may be,
no tax is payable by the lessee in respect of the lease as long as the person granting the lease and lessee continue to be related corporations.
(4) Where tangible personal property is purchased by a corporation from a related corporation and
(a) tax was paid on the tangible personal property by a related corporation of either the purchaser or the seller, or
(b) except for the case described in section 3.14.2, no tax was payable by the seller on its purchase of the tangible personal property in British Columbia, or on its bringing or sending into British Columbia or receiving of delivery in British Columbia of the tangible personal property by any related corporation of either the purchaser or the seller, as the case may be,
no tax is payable by the purchaser in respect of the acquisition if all the following requirements are met:
(c) the seller and the purchaser were related corporations for a period of not less than 8 months before the date of purchase;
(d) at or after the time of the purchase, the seller is dissolved or wound up under the Business Corporations Act, the Canada Business Corporations Act (Canada), the Bank Act (Canada) or the Winding Up Act (Canada);
(e) the seller and the purchaser remain related corporations until such time as the seller is dissolved or wound up.
[en. B.C. Reg. 127/88; am. B.C. Regs. 45/89, s. (a); 120/95, s. 2; 161/99, s. 1.]
Purchase by new corporations
3.14.1 (1) In this section, but subject to subsection (1.1), a person wholly owns and controls a corporation if the person owns beneficially at least 95% of the outstanding shares of each class of the share capital of the corporation.
(1.1) A person referred to in subsection (1) continues to wholly own and control a corporation despite transferring,
(a) without consideration, shares in the corporation to a trustee of a trust whose only beneficiaries are one or more of the following:
(i) the person;
(ii) the person's spouse;
(iii) the person's children, or
(b) with or without consideration, shares in the corporation to a trustee of a trust whose only beneficiaries are the persons spouse or the person and the person's spouse.
(2) Where a corporation purchases tangible personal property, at any time on or before the day it starts to carry on business, from a person that wholly owns and controls it, and
(a) tax was paid by the seller on the tangible personal property, or
(b) except for the case described in section 3.14.2, no tax was payable by the seller on its purchase of the tangible personal property in British Columbia, or on its bringing or sending into British Columbia or receiving of delivery in British Columbia of the tangible personal property, as the case may be,
no tax is payable by the purchasing corporation in respect of that purchase if the seller continues to wholly own and control the purchasing corporation for a period of not less than 8 months after the date of purchase.
(3) Where tangible personal property is purchased by a corporation, at any time on or before the day it starts to carry on business, from a person that does not wholly own and control it, and any one of the conditions referred to in subsection (2) (a) or (b) apply, the purchaser is exempt from tax as set out in subsection (4) if
(a) the consideration for the purchase of the tangible personal property by the purchasing corporation is the concurrent issue or transfer of its own shares to the seller, and
(b) the seller owns beneficially and holds legal title to all the shares so acquired for a period of not less than 8 months after the date of their issue or transfer.
(4) If the actual value of the shares issued or transferred in consideration of the purchase is
(a) at least equal to the actual value of the tangible personal property purchased, all the purchase price is exempt from tax, or
(b) less than the actual value of the tangible personal property purchased, the difference between the actual value of the tangible personal property purchased and the actual value of the shares issued or transferred is subject to the tax.
[en. B.C. Reg. 127/88; am. B.C. Regs. 45/89, s. (b); 406/89; 161/99, s. 2; 36/2008, s. 6.]
Barrier to exemption
3.14.2 (1) The case referred to in section 3.14 (2), (3), and (4) and in section3.14.1(2) occurs where no tax was payable by the seller or the person granting the lease because that person
(a) purchased the tangible personal property, or brought or sent the tangible personal property into British Columbia or received delivery of the tangible personal property in British Columbia, for resale or lease, or
(b) qualified for exemption by reason of that person's use of the tangible personal property, and the purchaser or lessee is not entitled to the same exemption.
(2) Despite subsection (1), the case referred to in sections 3.14 (2), (3) and (4) and 3.14.1 (2) does not occur in respect of software that is transferred to a related corporation if the transferor did not pay tax on the original acquisition of the software because, at the time of purchase, the software was not taxable by operation of paragraph (a), (b) or (c) of the definition of "software" in section 1 of the Act.
[en. B.C. Reg. 127/88; am. B.C. Regs. 45/89, s. (c); 57/92, s. 2; 120/95, s. 3; 52/98, s. 3; 161/99, s. 3.]
Payment of tax on breach of condition
3.14.3 If a condition which renders a purchaser exempt from payment of tax under section 3.14 or 3.14.1 is not fulfilled, the purchaser shall immediately
(a) report the matter in writing to the commissioner, and
(b) pay to Her Majesty the tax that would, but for the exemption, be payable at the date of purchase.
[en. B.C. Reg. 127/88.]
Sanitary supplies
3.15 Sanitary napkins, tampons and sanitary belts are exempt from the application of the tax.
[en. B.C. Reg. 270/71.]
Drugs and medicaments (alleviate pain)
3.16 Drugs and medicaments taken internally, whether orally or otherwise, or applied externally, that alleviate pain are exempt from the application of the tax.
[en. B.C. Reg. 52/72.]
Prescription drugs and vaccines
3.16.1 The following drugs and vaccines are prescribed for the purposes of section 71 (b.1) [exemptions for drugs and vaccines] of the Act:
(a) drugs specified in Schedule I or IA of the Drug Schedules Regulation, B.C. Reg. 9/98;
(b) a vaccine that is
(i) specified in Schedule II of the Drug Schedules Regulation, B.C. Reg. 9/98, or
(ii) a veterinary drug within the meaning of the Veterinary Drugs Act.
[en. B.C. Reg. 264/2009, s. (b).]
Tax on manufactured homes
3.18.1 (1) For the purposes of section 6 (4.1) of the Act, tax is payable on 50% of the purchase price, or the fair market value if section 11 (4.1) of the Act applies, of the manufactured home.
(2) For the purposes of section 6 (4.2) of the Act, tax is payable on 55% of the purchase price, or the fair market value if section 11 (4.1) of the Act applies, of the manufactured home.
[en. B.C. Reg. 439/2004, s. 6; am. B.C. Reg. 439/2004, ss. 7 and 8.]
Used mobile homes
3.19 (1) For the purpose of section 70 (i) of the Act, a mobile home is a used mobile home and exempt from the Act where
(a) it is a manufactured home referred to in section 6 (4.1) of the Act, and
(b) it has been previously sold at a retail sale and tax was paid on it under the Act or it was exempt from the Act and as a result no tax was paid on it.
(2) Repealed. [B.C. Reg. 439/2004, s. 9 (b).]
[en. B.C. Reg. 290/80; am. B.C. Regs. 96/88, s. 2; 439/2004, s. 9.]
Energy conservation exemption
3.20 (1) For the purpose of section 74 (e) of the Act, the following materials and equipment are prescribed:
(a) thermal insulation material that is
(i) a bat, a blanket, loose fill or cellular plastic material, and
(ii) designed primarily for the purpose of preventing loss of heat from a building,
(iii) Repealed. [B.C. Reg. 106/93, s. 4 (a).],
but not including vapour barrier or any other material incorporated into or attached to a building and serving a structural or decorative function;
(a.1) polystyrene forming blocks used in the construction industry that
(i) are used initially as a form for concrete, and
(ii) remain permanently attached to the concrete to serve as the primary insulation for the completed building to prevent heat loss from that building;
(a.2) fastening components that are specifically designed for use with, and are used with, the polystyrene forming blocks referred to in paragraph (a.1);
(b) and (c) Repealed. [B.C. Reg. 106/93, s. 4 (b).]
(d) Repealed. [B.C. Reg. 84/58, s. 3.20 (10).]
(e) Repealed. [B.C. Reg. 33/2007, s. 3 (a).]
(f) to (k) Repealed. [B.C. Reg. 106/93, s. 4 (b).]
(l) natural gas and propane conversion kits for internal combustion engines;
(m) weather stripping and caulking materials designed to prevent loss of heat from a building;
(n) wind powered generating equipment specifically designed to produce mechanical or electrical energy together with generators, controllers, wiring, and devices that convert direct current into alternating current, when they are sold with and as part of that equipment;
(o) solar photovoltaic collector panels, together with wiring, controllers, and devices that convert direct current into alternating current, when they are sold with and as part of that system;
(p) solar thermal collector panels, together with wiring, pumps, tubing, and heat exchangers, when they are sold with and as part of that system;
(q) micro-hydro turbines and generators designed to produce up to 150 kilowatts of mechanical or electrical energy together with controllers, wiring, tubing, and devices that convert direct current into alternating current, when they are sold with and as part of that equipment;
(q.1) equipment specifically designed to produce mechanical or electrical energy from ocean tides, currents or waves, together with generators, wiring, controllers, monitors, pumps, tubing, floats, water fences, aids to navigation as defined in the Canada Shipping Act, 2001 and devices that convert direct current into alternating current, when they are sold with and as part of that equipment;
(r) chemicals used to make spray polyurethane foam insulation which is designed primarily for the purpose of preventing loss of heat from a building;
(s) window insulating systems consisting of a transparent or translucent film, including frames or integral parts of the systems, that are installed in an existing window and designed primarily to retain heat in a building by absorbing solar heat or reducing drafts;
(t) a kit to convert a motor vehicle to operate exclusively on electricity;
(u) Repealed. [B.C. Reg. 84/58, s. 3.20 (10).]
(v) the following items, if designed to reduce wind-resistance and improve fuel efficiency:
(i) tractor-trailer gap fairings;
(ii) trailer sideskirts;
(iii) aerodynamic bumpers;
(iv) tank skirts;
(v) tractor-roof fairings;
(vi) base flaps;
(vii) boat tails;
(v.1) Repealed. [B.C. Reg. 84/58, s. 3.20 (11).]
(w) insulation, other than tapes and sealants, designed for the purpose of preventing the transfer of heat to or from hot water tanks, hot or cold water pipes or ductwork.
(1.01) Repealed. [B.C. Reg. 84/58, s. 3.20 (10).]
(1.1) Repealed. [B.C. Reg. 84/58, s. 3.20 (8).]
(1.2-1.5) Repealed. [B.C. Reg. 84/58, s. 3.20 (9).]
(2) The following are exempt from tax under the Act if purchased or leased for residential purposes and if listed as being "ENERGY STAR Qualified" by the Office of Energy Efficiency, Natural Resources Canada:
(a) Repealed. [per subsection (7)]
(b-e) Repealed. [B.C. Reg. 84/58, s. 3.20 (10).]
(2.1) Repealed. [B.C. Reg. 84/58, s. 3.20 (6).]
(2.2) Repealed. [B.C. Reg. 84/58, s. 3.20 (8.2).]
(2.3) Repealed. [B.C. Reg. 84/58, s. 3.20 (10).]
(3) Repealed. [B.C. Reg. 84/58, s. 3.20 (10).]
(4) Repealed. [B.C. Reg. 84/58, s. 3.20 (8).]
(4.1) If a person has paid tax under section 68.2 of the Act on or in respect of a commercial boiler that
(a) is referred to in subsection (2.3),
(b) was purchased before February 18, 2009, and
(c) has not, before February 18, 2009, been installed
the commissioner must, on application made before February 18, 2010, and on receipt of evidence satisfactory to the commissioner, pay out of the consolidated revenue fund a refund to the person in an amount equal to the tax the person paid.
(5) Repealed. [B.C. Reg. 84/58, s. 3.20 (10).]
(6) Subsection (2.1) and the definition of "SEUE rating" in subsection (3) are repealed on April 1, 2007.
(7) Subsection (2) (a) is repealed on January 1, 2008.
(8) Subsections (1.1) and (4) are repealed on April 1, 2009.
(8.1) Repealed. [B.C. Reg. 30/2009, s. 4 (c).]
(8.2) Subsection (2.2) is repealed on April 1, 2010.
(9) Subsections (1.2) to (1.5) are repealed on April 1, 2011.
(10) Subsections (1) (d) and (u), (1.01), (2) (b) to (e), (2.3), (3) and (5) are repealed on March 31, 2011.
(11) Subsection (1) (v.1) is repealed on March 31, 2012.
[en. B.C. Reg. 290/80; am. B.C. Regs. 239/81; 23/83; 240/87, s.2; 106/93, s. 4; 175/94, s. 4;
120/96, s. 3; 118/97, s. (b); 52/98, s. 4; 94/98, s. 2; 259/99, s. 2; 116/2000, s. 5; 145/2005, s. 2;
33/2007, s. 3; 174/2007; 36/2008, s. 7; 30/2009, ss. 3 and 4.]
Patent medicines
3.21 (1) Subject to subsection (2), for the purpose of section 71 (i) of the Act,
"patent medicines" are drugs and medicines commonly known as household medical aids that are sold for the purpose of treating, mitigating or preventing a disease or ailment in humans and include pain relievers, salve, ointment, nasal spray, inhalants, antiseptics, liniments, rubbing alcohol, porous plasters, foot powders, peroxides, boric acid, germicidals, laxatives, cough syrup, cold remedies, denture adhesives, first aid materials and shampoos and other substances used in the treatment of head lice.
(2) Patent medicines prescribed by subsection (1) do not include cosmetics, hair tonics, toothpaste, mouthwash, shaving cream, beauty aids, soap, toiletries, depilatories, perfume, after shave lotion, skin cream and shampoo, other than shampoo used in the treatment of head lice.
[en. B.C. Reg. 290/80; am. B.C. Regs. 95/99, s. 3.]
Definition: residential dwelling unit
3.22 For the purpose of section 74 (b), (c) and (d) of the Act,
"residential dwelling unit" means a detached house, cottage or other single family dwelling, duplex, apartment building, condominium, townhouse, rowhouse, rest home, nursing home, that portion of a multi-use building that is used for the purpose of single family dwellings, but does not include hotels, motels, lodges, resorts, hospitals or other institutional buildings, bunk houses or camp buildings for use on commercial or construction projects, or that portion of any building that is used for any purpose other than residential.
[en. B.C. Reg. 290/80; am. B.C. Regs. 248/81, s. 1; 148/2008, s. 3.]
Definition: fuel oil
3.24 For the purpose of section 74 (c) of the Act,
"fuel oil" means the liquid derived from petroleum or natural gas, and any other liquid, by whatever other name known or sold, containing any derivative of coal, petroleum or natural gas used to produce a flame for heating, cooking or raising steam and includes propane and butane when purchased for use in a residential dwelling unit as defined in section 3.22.
[en. B.C. Reg. 290/80.]
Devices used in the transportation of handicapped persons
3.25 For the purpose of section 71 (g) of the Act the following specialized devices are prescribed:
(a) wheelchairs and carriages whether or not power operated, and parts and accessories designed for them; special controls to enable handicapped persons to motivate electronic wheelchairs and carriages;
(b) patient lifters;
(c) specially designed household elevators for the handicapped including wheelchair elevators, and materials used to build a specially designed household elevator for the handicapped if the elevator becomes real property upon installation;
(d) power and manually operated lifts designed to facilitate entry to otherwise inaccessible accommodation or vehicles, including automatic tailgates or side lifts for a motor vehicle, when purchased by or for the use of handicapped persons;
(e) specially designed ramps to move a wheelchair and occupant into a motor vehicle or building;
(f) hand or foot controls specially designed to assist the handicapped in the operation of a motor vehicle;
(g) car top lifts for lifting and storing a wheelchair on top of an automobile;
(h) parts and materials that
(i) are used for the sole purpose of modifying a motor vehicle to adapt it to facilitate its use by, or the transportation of, an individual using a wheelchair, and
(ii) are attached to and become part of that motor vehicle.
[en. B.C. Reg. 248/81, s. 2; am. B.C. Regs. 98/95, s. 4; 260/99, s. 4.]
Safety equipment, safety apparel and other exempt tangible personal property
3.26 (1) The following work-related safety equipment designed to be worn by a worker is exempt from taxation under the Act:
(a) safety glasses, safety goggles, face shields, welding helmets;
(b) respirators which offer protection from dust, toxic gases and vapours, and gas masks, including protection canisters;
(c) hearing protectors, including ear down, ear plugs or muffs;
(d) safety caps, hard hats and helmets, but not including optional weather liners, skull caps, hairnets or sweatbands;
(e) gloves with built-in safety features, such as reinforced thumbs, palms or cuffs, designed to protect the wearer from physical harm, including traffic safety gloves to enhance visibility, but not including dress gloves, general purposes gloves and gloves designed primarily to protect the wearer from natural elements;
(f) footwear with built in safety features such as safety toes, loggers caulks or acid resistant qualities, but not including footwear designed solely for protection against the weather;
(g) metatarsal protectors, puncture resistant insoles, toe clips, shin guards, foot guards, skidmasters and ice cleats.
(2) Work-related safety equipment and apparel designed to be worn by or attached to a worker is exempt from taxation under the Act if purchased or leased by
(a) an employer for use by their employees in the course of their employment, if the purchase or lease is made for the purpose of complying with the Occupational Health and Safety Regulation, B.C. Reg. 296/97, or the Health, Safety and Reclamation Code for Mines in British Columbia,
(b) a person who is self-employed for the persons own use in the course of self-employment, if the person would have had to purchase or lease the equipment or apparel for the purpose referred to in paragraph (a) had the person been an employer, or
(c) a school board or similar authority on behalf of students for their use in courses of study given by a school, college or university, or by any business, trade or vocational school, if the school board or authority would have had to purchase or lease the equipment or apparel for the purpose referred to in paragraph (a) had the school board or authority been an employer.
(3) The following tangible personal property is exempt from taxation under the Act:
(a) life jackets;
(b) floater coats;
(c) life saving throw rings;
(d) life saving cushions;
(e) man overboard buoys and flags;
(f) marine survival suits;
(g) emergency life saving rafts approved by the Ministry of Transport (Canada);
(h) emergency locator transmitters;
(i) the following emergency equipment for use on highways:
(i) triangle emblems;
(ii) reflectors;
(iii) fluorescent tape;
(iv) reflective strips for barriers;
(v) distress flares;
(j) children's restraint car seats;
(k) portable fire extinguishers and their refills;
(l) bicycle lights and reflectors;
(m) safety helmets for sport, recreation or transportation;
(n) oxygen, oxygen containers or oxygen dispensing apparatus if the oxygen is purchased or the container or apparatus is purchased or leased by a person
(i) for medical or emergency use by that person, or
(ii) for medical or emergency use by another person at the place the purchaser or lessee positions the oxygen container or dispensing apparatus;
(o) safety vests and safety bibs, the sole purpose of which is to enhance the visibility of the wearer;
(p) medical alert transmitters designed to be used to communicate the existence of a medically related emergency, which transmitters are purchased or leased by a person
(i) for that use in the persons residence, or
(ii) for that use by another person at that other persons residence;
(q) gas detection monitors;
(r) distress flares purchased for use on vessels to draw attention to the vessel when it is in distress;
(s) personal intercom systems designed to be worn by workers to allow for safe, hands-free communication while working in environments that are confined or hazardous;
(t) personal alert safety systems designed to be worn by persons working in hazardous or potentially hazardous conditions, which alert the wearer to unsafe conditions or which alert rescuers as to the location of the wearer;
(u) emergency gas shut-off devices
(i) that are designed for manually turning off the gas supply of a building, or
(ii) that are attached to the gas line and designed for automatically cutting off the gas supply in response to significant movement;
(v) first aid kits;
(w) the following avalanche safety and rescue equipment:
(i) avalanche airbag backpack systems specifically designed to carry gas cartridges and airbags which inflate instantly when triggered to help keep the wearer above the snow surface during an avalanche;
(ii) avalanche beacons and probes for locating avalanche victims;
(iii) equipment specifically designed to reduce the likelihood of asphyxiation from the formation of ice masks when a person is buried under snow by providing an artificial air pocket through which air is taken from the surrounding snowpack.
(4) A person who claims an exemption under subsection (2) must provide the vendor or lessor with
(a) a certification, in a form satisfactory to the commissioner, certifying that the person is eligible for the exemption and that the work safety equipment or apparel being purchased or leased qualifies for the exemption, or
(b) the number of the persons registration certificate issued under section 92 (2) of the Act.
(5) If a vendor or lessor does not collect tax from a person who claims, but is not entitled to, an exemption under subsection (2), the vendor or lessor is not liable for a penalty imposed under section 115 (5) of the Act, provided that the requirements of section 3.4 have been met with respect to that sale or lease.
(6) Despite subsection (5), if a vendor or lessor has reason to believe that a person who claims an exemption under subsection (2) is not entitled to the exemption claimed, or that the work-related safety equipment or apparel is not exempt under that subsection, the vendor or lessor must
(a) collect from the person the tax that would be payable under the Act if the exemption did not apply, and
(b) advise the person to apply to the commissioner for a refund of tax the person claims to have paid in circumstances in which there was no legal obligation to pay the tax.
(7) Repealed. [B.C. Reg. 220/2010, Sch. 2, s. 2.]
[en. B.C. Reg. 148/2008, s. 4; am. B.C. Reg. 220/2010, Sch. 2, s. 2.]
Poppies, wreaths and natural cut Christmas tree exemptions
3.26.1 The following tangible personal property is exempted from taxation under the Act:
(a) Remembrance Day poppies and wreaths;
(b) natural, cut evergreens sold as Christmas Trees.
[en. B.C. Reg. 345/85; am. B.C. Reg. 249/86.]
Freedom of information and protection of privacy
3.26.2 Tangible personal property acquired under the Freedom of Information and Protection of Privacy Act and described in the Schedule of Maximum Fees in B.C. Reg. 323/93, the Freedom of Information and Protection of Privacy Act Regulation, is exempt from taxation under the Social Service Tax Act.
[en. B.C. Reg. 392/93.]
Printers, photographers and abrasive exemptions
3.28 (1) Under section 77 (a) of the Act, film, photographic paper and chemicals used in developing film are exempt from taxation under the Act when purchased or leased by a commercial photographer or by a person in the business of photograph processing or finishing for use in the course of his business.
(2) Under section 77 (a) of the Act,
(a) typeset products,
(b) cuts,
(c) plates,
(c.1) blankets used in the printing process to transfer the ink to the product being printed,
(d) artwork,
(e) engravings,
(f) photographs,
(g) negatives,
(h) film,
(i) transparencies,
(j) flats,
(k) paste ups,
(l) signatures, and
(m) materials used to manufacture or produce any of the items listed in this subsection
are exempt from taxation under the Act when purchased or leased by printers or publishers for their own use in a printing or publishing process.
(3) Under section 77 (a) of the Act,
(a) abrasive paper, emery paper or other fabric backed abrasives suitable for use by hand or for use with hand held tools,
(b) sand used for sand blasting,
(c) grinding wheels and discs other than refiner plates and discs used for manufacturing pulp,
(d) steel wool,
(e) steel, plastic and glass shot and similar material used for blasting clean a surface,
(f) polishing wheels,
(g) rotary steel brushes,
(h) molds,
(i) jigs,
(j) dies, and
(k) patterns
which will be consumed or used during the manufacture, production, service or repair of tangible personal property are exempt from taxation under the Act when purchased or leased by a person for consumption in the course of his business or for use in the course of his business.
(4) For the purposes of subsection (3) and subject to subsection (5),
"die" means a solid or hollow form used for shaping or marking goods in process by cutting, stamping, pressing or extruding, but does not include
(a) planers, saws, knives or blades, or
(b) a die set or tap set used for cutting threads;
"jig" means a device used in the accurate machining of goods in process which holds the goods firmly and guides the working tools, or which bends the goods in process;
"mold" means a hollow form into which materials are placed to produce desired shapes, matrices or cavities which shape or form goods in process.
(5) A "die", "jig" or "mold" does not include
(a) components or materials used to manufacture or produce the die, jig or mold,
(b) any machinery, equipment, apparatus or device
(i) to which the die, jig or mold may be attached, or
(ii) that is necessary to carry out the function or process of the die, jig or mold, and
(c) rolls, cylinders, wires, fabrics, felts or screens used in a manufacturing or production process.
[en. B.C. Reg. 64/85, s. 7; am. 1988-46-54; B.C. Regs. 79/87, s. 6; 22/93, s. 2; 173/94; 120/96, s. 5; 116/2000, s. 6.]
Parts and materials used in providing a taxable service
3.28.1 Under section 77 (a) of the Act, parts and materials are exempt from taxation under the Act when
(a) they are purchased by a vendor registered under section 92 of the Act,
(b) they are purchased for the purpose of being attached to or incorporated into tangible personal property to which a taxable service is applied by that vendor, and
(c) tax on the provision of the taxable service is payable under Part 2, Division 5 of the Act
(i) by the person purchasing the taxable service from the vendor, or
(ii) if the taxable service is to be sold by the vendor to a person prescribed under section 2.47 (a) of this regulation, by the ultimate purchaser of the taxable service.
[en. B.C. Reg. 333/93.]
Human organs, etc. exempt
3.28.2 Under section 77 (a) of the Act, the purchase of human organs, tissue and semen is exempt from taxation under the Act.
[en. B.C. Reg. 419/95.]
Human blood and blood constituents exempt
3.28.3 Under section 77 (a) of the Act, the purchase of human blood and human blood constituents is exempt from taxation under the Act.
[en. B.C. Reg. 95/99, s. 5.]
Portable buildings
3.30 (1) "Portable building" means a building that is designed to be moved from location to location whether or not it is affixed to the land, but does not include
(a) a manufactured home that is designed for, and will be used as, a family residential dwelling unit, or
(b) a building that is designed for use on residential property.
(2) Portable buildings that are manufactured and sold in the Province for use in the Province are exempt from taxation under the Act.
[en. B.C. Reg. 173/85, s. 2; am. B.C. Regs. 175/94, s. 6; 439/2004, s. 10.]
Gold, silver and platinum
3.31 Gold, silver or platinum in the form of bullion or coin, when purchased at a purchase price equivalent to the market value of its gold, silver or platinum content, is exempt from taxation under the Act.
[en. B.C. Reg. 255/89.]
Steam heat
3.32 Under section 77 (a) of the Act, steam heat is exempt from taxation under the Act when it is purchased or leased for residential use.
[en. B.C. Reg. 174/94.]
Heat
3.32.1 Heat is exempt from taxation under the Act when it is purchased for residential use.
[en. B.C. Reg. 108/2006, s. 2.]
Software
3.33 For the purposes of the exemption provided under section 76 (1) (d) of the Act, software is prescribed as not eligible for that exemption unless the software is specifically designed for, and integrated into, the prototype referred to in that section.
[en. B.C. Reg. 126/2001, s. 3.]
Prototypes
3.34 For the purposes of section 76 (1) (d) or (d.1) of the Act, an exemption applies in respect of a copy of a prototype if the copy is made solely for the purpose of testing the prototype as part of research and development activities.
[en. B.C. Reg. 94/98, s. 3; am. B.C. Reg. 126/2001, s. 4.]
Nicotine gum etc.
3.35 Nicotine gum, nicotine patches and similar items produced and sold for the sole purpose of assisting the purchaser to stop smoking tobacco are exempt from taxation imposed by sections 5 to 25 of the Act.
[en. B.C. Reg. 284/98.]
Used boom gear
3.36 (1) For the purposes of section 76 (1) (i.1) of the Act, boom gear is used boom gear if
(a) the boom gear was previously sold at a retail sale,
(b) tax was paid on the boom gear under the Act, and
(c) the boom gear was previously used as boom gear.
(2) The following used boom gear is exempt from taxes under sections 5 to 25 of the Act:
(a) boom chains used to tie the boomsticks together to form a frame;
(b) bundle and continuous wires used to secure the logs that are transported within the frame;
(c) swifter wires used to secure the bundled logs to the frame.
[en. B.C. Reg. 126/2001, s. 5; am B.C. Reg. 220/2010, Sch. 2, s. 3.]
Emission control devices
3.37 (1) An emission control device for diesel vehicles is exempt from tax under sections 5 to 25 of the Act, if the device is purchased for use with a diesel engine and the device has been verified in accordance with subsection (2) to reduce particulate-matter emissions from that type and model-year of engine by at least
(a) Repealed. [B.C. Reg. 402/2008 s. (b).]
(b) 50%, if the device is purchased on or after March 31, 2010.
(2) An emission control device for diesel vehicles is verified for the purposes of subsection (1) if the device has been verified
(a) by the California Air Resources Board,
(b) by the United States Environmental Protection Agency, or
(c) in accordance with the Canadian Environmental Technology Verification Program.
(3) Subsection (1) (a) is repealed on March 31, 2010.
(4) Subsection (1) (b) is repealed on April 1, 2012.
[en. B.C. Reg. 36/2008, s. 8; am. B.C. Regs. 402/2008; 220/2010, Sch. 2, s. 3.]
Chemical substances, catalysts and direct agents
3.38 The exemption under section 76 (1) (b) of the Act does not apply to a chemical substance, catalyst or direct agent that is
(a) used for processing tangible personal property, unless the processing consists of, is one step in, or occurs immediately after, a series of operations or a complex operation that results in a substantial change in the form or other physical or chemical characteristics of the tangible personal property,
(b) used to transform tangible personal property from a gaseous, liquid or solid state to another one of those states by means of the application of pressure or a change in temperature, unless the transformation is one step in, or occurs immediately after, an operation referred to in paragraph (a),
(c) used for the primary purpose of maintaining, lubricating or prolonging the life of machinery or equipment,
(d) added to waste removed from the production process,
(e) added to a tailings or settling pond, or
(f) used for testing purposes.
[en. B.C. Reg. 148/2008, s. 5.]
Persons who are not required to be registered — qualifying tangible personal property
4.9 The following tangible personal property is prescribed for the purposes of section 92.2 (1) of the Act:
(a) all-terrain vehicles;
(b) snowmobiles;
(c) trailers;
(d) personal watercraft.
[en. B.C. Reg. 86/2007, s. (a).]
Excluded exemptions
4.10 Section 3.28 of these regulations is prescribed for the purposes of section 92.2 (4) of the Act.
[en. B.C. Reg. 86/2007, s. (a).]
Division 5 - Returns and Records
Return of sales
5.1 (1) The commissioner may at any time require a return of retail sales of tangible personal property and tax collected by any person selling tangible personal property, such return to cover any period or periods.
(2) Subject to the provisions of subsection (1), unless otherwise provided, all vendors or lessors shall make separate monthly returns to the commissioner. However, the first return under this section shall be made for the 2 month period first following the coming into force of the Act.
[am. B.C. Reg. 305/81, s. 4.]
Due date of vendor's returns
5.2 (1) The returns by vendors or lessors must be made to the commissioner at the end of the reportable period and must be received by the commissioner no later than 23 days after the last day of each period.
(2) Returns are deemed to be received by the commissioner
(a) if the return is remitted by Canada Post, by courier, by an electronic method acceptable to the commissioner, or by the vendor or lessor or an agent of either of them personally, the day of receipt by the commissioner of the return, and
(b) if the return is remitted to a bank or other financial institution, the day of receipt by the bank or financial institution of the return.
[en. B.C. Reg. 33/2007, s. 5.]
Consolidated and separate returns
5.3 A separate return shall be made for each place of business unless a consolidated return has been approved by the commissioner. In cases where a consolidated return has been approved, the account number will be allotted the prefix "9".
[am. B.C. Regs. 305/81, s. 4; 57/92, s. 3.]
Nil returns
5.4 (1) If a vendor or lessor during the preceding period has collected no tax, he shall nevertheless make a report to that effect on the prescribed return form.
(2) Subsection (1) does not apply in relation to a reporting period that begins on or after July 1, 2010.
[am. B.C. Regs. 305/81. s. 3; 220/2010, Sch. 2, s. 5.]
Discontinuance of business and cancellation of registration certificate
5.5 When a vendor or lessor disposes of or discontinues his business, he shall, not later than 23 days thereafter, advise the commissioner of the particulars and submit his registration certificate for cancellation and make a return for the period unreported.
[am. B.C. Regs. 305/81, s. 3; 33/2007, s. 6.]
Tangible personal property taken from stock or supplied to employees
5.6 Vendors or lessors shall report in the authorized returns, and shall pay tax in respect of all items of tangible personal property purchased or taken out of stock by themselves for their own consumption or use, and shall collect tax from their employees in respect of tangible personal property supplied to them out of stock where such have not been included as a retail sale.
[am. B.C. Reg. 305/81, s. 4.]
Sale of tangible personal property by persons other than vendors
5.7 All persons, other than vendors or lessors who sell or lease tangible personal property and persons described in section 92.2 (3) of the Act, shall immediately report the sale to the commissioner and remit the tax thereon, including all items of tangible personal property purchased tax free or taken out of stock by themselves for their own consumption or use, and shall collect tax from their employees in respect of tangible personal property supplied by them out of stock where such have not otherwise been reported.
In addition, all persons who solicit orders for the sale of tangible personal property, the consumption or use of which is taxable under the Act, shall file returns concerning such sales with the commissioner. Such returns shall be filed immediately after the end of each month, and in no case later than 23 days after the close of the reportable period. The returns shall contain the following information:
(a) the name and address of each purchaser from whom an order is taken;
(b) the description and sales price of the tangible personal property sold or to be sold pursuant to such order;
(c) the date upon which the order is taken;
(d) the date as nearly as can be determined at which the tangible personal property is to be delivered to the purchaser.
[am. B.C. Regs. 305/81, ss. 4, 5; 79/87, s. 7; 33/2007, s. 7; 86/2007, s. (b).]
Allowance for vendors
5.8 (1) For the purposes of section 95 of the Act, the allowances to vendors or lessors for collecting and forwarding tax to the government is, commencing on the return in respect of sales made in November 2008 and for returns in respect of reporting periods that begin before January 1, 2011, as follows:
| Amount of Tax Collected for Each Reporting Period | Commission per Vendor or Lessor for Each Reporting Period | |
| $0.00—$22.00 | The amount of tax collected | |
| $22.01—$333.33 | $22 | |
| more than $333.33 | 6.6% of the tax collected to a maximum of $198 | |
(1.1) The allowance to vendors or lessors for collecting and forwarding tax to the government for returns in respect of reporting periods entirely before November, 2008 is the allowance calculated under subsection (1) as it read on October 1, 2008.
(2) The allowance referred to in subsection (1) applies notwithstanding that a vendor has more than one place of business in the Province or files more than one return during a reporting period.
(3) The minister may disallow an allowance under subsection (1) where the return is not filed within the time prescribed under sections 5.2 and 5.5.
[en. B.C. Regs. 118/81; am. B.C. Regs. 305/81, s. 4; 79/87, s. 8; 175/94, s. 8;
304/2008, Sch. 1; 220/2010, Sch. 2, s. 6.]
Remittance to commissioner
5.9 (1) In the case of a vendor or lessor, the amount of tax due as shown by the return, less authorized deductions, shall be remitted to the commissioner at Victoria in time to be received by the commissioner not later than 23 days after the last day of the month during which the tax was collected or became payable, and in other cases the tax must be remitted forthwith to the commissioner or to a person appointed by the commissioner, who shall issue an interim receipt.
(2) Remittance shall be made as follows:
(a) by cheque;
(b) by bank, express or postal money order;
(c) by cash;
(d) by an electronic method acceptable to the commissioner.
(3) The amount of tax due, if submitted with a return, is deemed to be received by the commissioner
(a) if the return is remitted by Canada Post, by courier, by an electronic method acceptable to the commissioner, or by the vendor or lessor or an agent of either of them personally, the day of receipt by the commissioner of the return, and
(b) if the return is remitted to a bank or other financial institution, the day of receipt by the bank or financial institution of the return.
[am. B.C. Regs. 305/81, s. 3; 79/87, s. 7; 98/95, s. 5; 256/95; 33/2007, s. 8.]
Returns to the commissioner
5.10 (1) Every person liable to pay tax under the provisions of section 11 (1) of the Act, other than a vendor or lessor, must make a return to the commissioner on the form provided for that purpose or in such other form as may be satisfactory to the commissioner.
(2) In the case of a vendor or lessor, returns shall be made and tax collected shall be remitted at the times prescribed in these regulations, and in the case of all other persons the returns shall be made and the tax remitted forthwith after tangible personal property has been received or brought into the Province.
[am. B.C. Regs. 305/81, s. 3; 133/2001, s. 2.]
Vendor's records
5.11 (1) Every vendor or lessor shall keep books of account, records and documents sufficient to furnish the commissioner with the necessary particulars of:
(a) sales or leases of tangible personal property;
(b) tangible personal property purchased or taken from stock by the vendor or lessor for his own consumption or use, or supplied to his employees, where such have not been included as retail sales;
(c) non-taxable sales of tangible personal property, including sales for resale, non-taxable leases, discounts, refunds and exemptions;
(d) taxable sales or leases of tangible personal property;
(e) amount of tax collected;
(f) disposal of tax, including commission taken.
(1.01) Subsection (1) (a) to (c) does not apply to
(a) sales, leases or non-taxable sales of tangible personal property, or
(b) tangible personal property purchased, taken or supplied
on or after July 1, 2010.
(1.1) Every person who is required to collect tax under section 93 (1.1) of the Act must keep books of account, records and documents sufficient to furnish the commissioner with the necessary particulars of
(a) taxable sales of tangible personal property,
(b) the amount of tax collected, and
(c) disposal of tax, including commission taken.
(2) All entries concerning the tax in such books of account, records and documents shall be separate and distinguishable from other entries made therein.
[am. B.C. Regs. 305/81, s. 3; 85/90, s. 1; 133/2001, s. 3; 220/2010, Sch. 2, s. 7.]
Tax to be shown on receipts, etc.
5.12 Where a receipt, bill, invoice or other document is issued by a person
(a) selling tangible personal property at a retail sale, or
(b) leasing tangible personal property to a lessee,
the tax shall be shown as a separate item on it.
[en. B.C. Reg. 85/90, s. 2]
Form of tax receipt
5.13 Where, for the purpose of accounting for the tax collected, a receipt for the amount of the tax is issued by the vendor or lessor, it shall be in a form satisfactory to the commissioner.
[am. B.C. Reg. 305/81, s. 3.]
Retention of records
5.14 (1) A vendor, lessor or other person carrying on business in British Columbia who is required to collect or pay tax under the Act must retain books of account, records and documents required under the Act for a period of 5 years.
(2) If a vendor, lessor or other person carrying on business in British Columbia makes a written application to the commissioner for permission to destroy a book of account, record or document, the commissioner may authorize the requested destruction prior to the expiry of the period described in subsection (1).
(3) Despite any other provision of this section, if a book of account, record or document might be necessary for the purposes of an appeal under section 118 or 119 of the Act, the vendor, lessor or other person carrying on business in British Columbia must retain the book of account, record or document after the expiry of the period described in subsection (1) and until the appeals under section 118 or 119 of the Act have been exhausted.
[en. B.C. Reg. 307/2001; am. B.C. Reg. 33/2007, s. 9.]
Keeping of records
5.15 If a vendor, lessor or other person referred to in section 5.14 fails or refuses to keep books of account, records and documents adequate for the purposes under the Act, the commissioner may require such person to keep such books of account, records and documents as he may prescribe.
[am. B.C. Reg. 85/90, s. 4.]
Demand notice
5.17 Where a person has not remitted tax that he has collected or that is due from him at any time, the commissioner may make a written demand that the tax be remitted, and such person shall thereupon remit the tax collected or the tax due, as the case may be, to the commissioner within the time limited by the notice.
Payment of tax on motor vehicle transactions
5.18 (1) In this section:
"vehicle" means a motor vehicle, trailer, motorcycle and all terrain vehicle registrable or licensable under vehicle registration legislation, but does not include a multijurisdictional vehicle or a trailer used for interjurisdictional commercial purposes;
"vehicle registration legislation" means the Motor Vehicle Act, Commercial Transport Act or Motor Vehicle (All Terrain) Act.
(2) Where tax is payable or has been paid in respect of a vehicle, the purchaser shall, at the time application is made under vehicle registration legislation for registration, licensing or transfer of the vehicle,
(a) where the tax is unpaid, remit the tax to the Insurance Corporation of British Columbia, or
(b) where the tax has been collected by a vendor, provide to the Insurance Corporation of British Columbia a bill of sale or written agreement of sale containing a description of the vehicle, the purchase price paid, the amount of tax paid to the vendor and the name and address of the vendor.
(3) Subsection (2) does not apply in respect to a transaction made by a dealer registered under the Motor Dealer Act.
[en. B.C. Reg. 211/83; am. B.C. Regs. 548/95, s. 2; 149/2008.]
Tax uncollectable due to bad debts
5.19 (1) The amount of a refund to which a collector is entitled under section 90 of the Act in respect of a transaction referred to in that section shall be calculated in accordance with the following formula:
| R = TR X | WO |
| TAP |
where
| R | = | the amount of the refund to which the collector is entitled in respect of the transaction; |
| TR | = | the tax remitted on the transaction; |
| WO | = | the amount of money remaining unpaid on the transaction that was written off as unrealizable or uncollectable, not including interest charges; |
| TAP | = | the total amount payable on the transaction including all applicable taxes, but not including interest charges. |
(2) Under section 90 (3) of the Act, a collector may deduct from the taxes he would otherwise be required to remit the amount of a refund to which he is entitled under section 90 (1) of the Act where he submits with his tax return Form B
(a) the name and address of the purchaser whose account has been written off,
(b) the amount of the sale or lease and the tax involved,
(c) the date of the sale, and
(d) a statement that
(i) the amount of tax being deducted has been written off as unrealizable or uncollectable,
(ii) he is of the opinion that the amount of tax being deducted is unrealizable or uncollectable, and
(iii) the collector will, on recovering any part of the amount written off for which a refund is obtained or a deduction is taken under this subsection, remit to the commissioner by the 23rd day of the month following the month in which the recovery is made, the proportion of the refund or deduction that the amount recovered bears to the amount written off.
(iv) Repealed. [B.C. Reg. 175/94, s. 9.]
(3) A collector who, under section 90 of the Act, obtains a refund or deducts the amount of the refund from the amount of taxes he is required to remit shall retain all records of the sale in relation to which the tax was imposed until their disposal is authorized by the commissioner.
(4) Where a collector intends to apply for a refund under section 90 of the Act, or deduct that refund from the amount of the taxes he is required to remit, he shall do so as soon as possible after he has written off the collection of the tax.
(5) For the purposes of section 90 (5) (c) of the Act in relation to an amount recovered, the prescribed time for the payment of an amount in respect of the amount recovered is the date that is 23 days after the last day of the month in which the amount is recovered.
[en. B.C. Reg. 287/82, s. 3; am. B.C. Regs. 175/94, s. 9; 94/98, s. 4;
33/2007, s. 10; 220/2010, Sch. 2, s. 8.]
Calculation of interest
6.2 Interest payable under the Act must be
(a) compounded monthly, and
(b) calculated on the number of days since the last compounding of interest, or if no compounding has yet occurred, from the date that interest is payable under the Act.
[en. B.C. Reg. 264/2000, s. 3.]
Calculation of interest if assessment equals or exceeds refund
6.3 (1) This section applies to the calculation of interest under section 117 (2) of the Act if
(a) the commissioner makes an assessment against a person under section 115 (1) or (2) of the Act for an amount of tax payable, collected or due,
(b) the commissioner has determined that the person referred to in paragraph (a) is entitled to a refund under Part 4 of the Act in respect of taxes paid during the period of time considered by the commissioner in making the assessment referred to in paragraph (a),
(c) prior to the commissioner's giving notice of the assessment for the amount of tax referred to in paragraph (a), the application for the refund that is required by the Act is made by the person but the refund is not yet made, and
(d) the amount of tax referred to in paragraph (a) is equal to or exceeds the amount of the refund referred to in paragraph (b).
(2) In the circumstances set out in subsection (1), the commissioner must calculate interest on the amount of tax referred to in subsection (1) (a) in the following manner:
(a) the commissioner must calculate the interest, in the manner prescribed under section 6.2 and at the rate prescribed under the Interest Rates Under Various Statutes Regulation, on each of the following:
(i) the amount of tax referred to in subsection (1) (a);
(ii) the amount of the refund referred to in subsection (1) (b) as if that amount were an amount of tax assessed against the person on the date that the person paid the tax that resulted in the person's entitlement to the refund;
(b) the commissioner must subtract the amount calculated under paragraph (a) (ii) from the amount calculated under paragraph (a) (i);
(c) the commissioner must, in the manner and at the rate prescribed under the Interest on Overdue Accounts Payable Regulation, calculate the interest payable on the amount of the refund referred to in subsection (1) (b);
(d) the commissioner must add the amount calculated under paragraph (c) to the amount calculated under paragraph (b).
(3) If the amount calculated under subsection (2) (d) is a negative amount, the interest on the amount of tax referred to in subsection (1) (a) is zero.
[en. B.C. Reg. 118/2005.]
Calculation of interest if refund exceeds assessment
6.4 (1) This section applies to the calculation of interest under section 117 (2) of the Act if section 6.3 (1) (a), (b) and (c) apply, but the amount of tax referred to in section 6.3 (1) (a) is less than the amount of the refund referred to in section 6.3 (1) (b) and (c).
(2) In the circumstances set out in subsection (1),
(a) the rate of interest payable on the amount referred to in section 6.3 (1) (a) during each successive 3 month period, beginning on January 1, April 1, July 1 and October 1 in every year, is 2% below the prime lending rate of the principal banker to the Province on the 15th day of the month immediately preceding that 3 month period, and
(b) interest must be
(i) compounded monthly, and
(ii) calculated on the number of days since the last compounding of interest or, if no compounding has yet occurred, since the interest commencement date.
[en. B.C. Reg. 118/2005.]
Levels of fines for contravention of specific sections
7 A person who contravenes sections 3.4, 5.1 to 5.7, 5.9 to 5.15, 5.17 or 5.18 commits an offence and is liable
(a) on a first conviction, to a fine of not less than $200 and not more than $500, and
(b) on a subsequent conviction for the same or another provision of this regulation, to a fine of not less than $500 and not more than $2 000.
[en. B.C. Reg. 360/82; am. B.C. Regs. 244/90, s. 2; 220/2010, Sch. 2, s. 9.]
Disbursements
8 A disbursement for legal research or secretarial and other support services is a prescribed disbursement for the purposes of paragraph (b) (ii) of the definition of "purchase price" in section 1 of the Act.
[en. B.C. Reg. 40/94.]
Fees and charges
8.1 Fees and charges for facsimile transmission, printing of documents or photocopying of documents are prescribed as excluded for the purposes of paragraph (b) (i) of the definition of "purchase price" in section 1 of the Act if the amount of the fees or charges is reasonably related to the cost of facsimile transmission, printing of documents or photocopying of documents incurred by the person providing the legal services.
[en. B.C. Reg. 40/94.]
Exemption if legal services provided under contract
8.2 Legal services provided to a law firm or notary firm by a lawyer or notary who is employed exclusively by the firm under a contract for services or as an associate counsel, but who is not an employee for purposes of the Income Tax Act (Canada), are exempt from tax under section 46 or 47 of the Act if the purchase price to the firm for the legal services is recovered directly by the firm in its sale price of the legal services to the firm's client in respect of whom the legal services were provided.
[en. B.C. Reg. 40/94.]
Exemption if legal services partly provided by legal aid
8.3 If the purchase price of legal services provided to an individual is paid partly by the individual and partly, for the purposes of section 3 of the Legal Services Society Act, by the Legal Services Society or by a funded agency within the meaning of the Legal Services Society Act, the legal services which are paid for by the individual are exempt from tax under sections 46 or 47 of the Act.
[en. B.C. Reg. 40/94.]
Exemption if legal services provided to Indians
8.5 (1) In this section "band", "Indian" and "reserve" have the same meaning as in section 2 of the Indian Act (Canada).
(2) The purchase of legal services by an Indian or a band is exempt from tax under section 46 or 47 of the Act if
(a) the legal services relate to real property situated on a reserve, or
(b) the legal services are performed on a reserve.
(3) The purchase of legal services related to aboriginal treaty or land claims negotiations are exempt from tax under section 46 or 47 of the Act if the legal services are purchased by an aboriginal organization representing the interests of Indians and bands in such negotiations.
[en. B.C. Reg. 40/94.]
Exemption if legal services provided to a corporation
8.7 A corporation is exempt from tax under section 46 or 47 of the Act in relation to legal services provided to that corporation by a lawyer who is an employee of a related corporation as that term is defined in section 3.14 (1).
[en. B.C. Reg. 40/94.]
Retention or seizure of records for which solicitor client privilege is claimed
8.8 (1) If a person acting under the authority of section 113 of the Act is about to inspect, audit or examine a record that is in the possession of a lawyer and the lawyer claims that a named client of the lawyer has a solicitor client privilege in respect of the record,
(a) the person acting under the authority of section 113 of the Act must not inspect, audit or examine the record, and
(b) the lawyer must
(i) place the record in a package, together with any other records in respect of which the lawyer at the same time makes the same claim on behalf of the same client,
(ii) suitably seal and identify the package or, if the person referred to in paragraph (a) and the lawyer agree, allow pages of the record to be initialed and numbered or otherwise suitably identified, and
(iii) retain the package and ensure that it is preserved until it is produced to a court under section 8.9 or 8.10 and an order under that section is made in respect of the record or until the record is otherwise dealt with in accordance with this regulation.
(2) If a person acting under the authority of a warrant under the Offence Act in relation to a possible contravention of the Act or regulations under the Act is about to seize a record that is in the possession of a lawyer and the lawyer claims that a named client of the lawyer has a solicitor client privilege in respect of the record,
(a) the person seizing the record must not inspect, examine or make copies of the record, and
(b) that person must
(i) seize the record and place it in a package, together with any other records subject to seizure in respect of which the lawyer at the same time makes the same claim on behalf of the same client,
(ii) suitably seal and identify the package, and
(iii) place the package in the custody of a sheriff or, if the lawyer and that person agree in writing on another person to act as custodian, in the custody of that other person.
(3) For the purposes of subsections (1) and (2), if a record is in electronic form only, the lawyer must make a copy of the record in printed, electronic or other form and the person required to place the record in a package must include either the original record or the copy in the package.
(4) A lawyer who makes a claim under this section must, at the time of making the claim, communicate to the commissioner the address of the client last known to the lawyer so that the commissioner may endeavour to advise the client of the claim and give the client an opportunity, if it is practicable within the time limit established by section 8.10 (1), to waive the claim of privilege before the matter is dealt with under section 8.10 or 8.11.
[en. B.C. Reg. 155/94.]
Custody of seized documents while claim determined
8.9 (1) The custodian of a record seized under section 8.8 (2) must not deliver the record to any person except
(a) in accordance with an order under section 8.10 or 8.11,
(b) to the lawyer in accordance with a written consent of the commissioner, or
(c) to the commissioner or a person appointed under section 113 (1) of the Act in accordance with a written consent of the lawyer or the client.
(2) At any time while a record seized under section 8.8 (2) is in the custody of a custodian, the lawyer who made the claim under that section may apply to the Supreme Court without notice to any other person for an order that
(a) authorizes the lawyer to examine or make a copy of the record in the presence of the custodian or a judge of the court, and
(b) contains provisions that the court considers necessary to ensure that the record is repackaged and the package resealed without alteration or damage.
(3) If any question arises as to the course to be followed in connection with anything done or being done under this section or section 8.10 or 8.11 and there is no direction in these sections on the matter, on application, the Supreme Court may give such direction as is in the court's opinion most likely to carry out the object of sections 8.8 to 8.11 of allowing solicitor client privilege for proper purposes.
[en. B.C. Reg. 155/94.]
Application to court by lawyer or client
8.10 (1) Within 14 days after a record is retained under section 8.8 (1) or seized under section 8.8 (2), the lawyer or the client may apply to the Supreme Court for a determination of whether the client has solicitor client privilege with respect to the record.
(2) Within 7 days of filing the petition commencing an application under this section, the petition must be served on the Crown in accordance with section 8 of the Crown Proceeding Act, with the Crown designated "Her Majesty the Queen in right of the Province of British Columbia".
(3) If the person who commenced an application sets the matter down for hearing, that person must, at least 7 days before the date set for the hearing,
(a) serve the notice of hearing on the Crown and on the custodian of the record, if any, and
(b) pay to the custodian, if any, the estimated expenses of transporting the record to and from the place of hearing and of safeguarding it.
(4) The hearing of an application must exclude the public if
(a) the lawyer or the client requests that the public be excluded, or
(b) the court orders that the public be excluded.
(5) On the hearing of an application, the court must,
(a) if it decides that the client has solicitor client privilege with respect to the record, order the release of the record to the lawyer or the client, or
(b) if it decides that the client does not have solicitor client privilege with respect to the record,
(i) in the case of a record retained under section 8.8 (1), order that the lawyer make the record available for inspection, audit or examination by the commissioner or a person appointed under section 113 (1) of the Act, or
(ii) in the case of a record seized under section 8.8 (2), order the custodian to deliver the record to the commissioner or another person designated by the commissioner.
(6) The court may inspect the record if it considers this necessary for the purposes of subsection (5) and, if this is done, the court must ensure that the record is repackaged and the package resealed and the reasons for judgement must not divulge any details of the record.
[en. B.C. Reg. 155/94.]
Application to court by Crown
8.11 (1) The Crown may apply to the Supreme Court for an order under this section if
(a) no application under section 8.10 (1) is commenced within the time limit set by that section in relation to a record that was retained or seized, or
(b) the person bringing an application under section 8.10 does not set the matter down to be heard on a date no later than 30 days after the commencement of the application or a later date agreed to by the Crown.
(2) On the hearing of an application under this section, the court must
(a) in the case of a record retained under section 8.8 (1), order that the lawyer make the record available for inspection, audit or examination by the commissioner or a person appointed under section 113 (1) of the Act, or
(b) in the case of a record seized under section 8.8 (2), order the custodian to deliver the record to the commissioner or another person designated by the commissioner.
[en. B.C. Reg. 155/94.]
Part of a record
8.12 An application or order that may be made under this Division in respect of a record may be made in respect of a part of a record.
[en. B.C. Reg. 155/94.]
Division 9 - Multijurisdictional Vehicles
Definitions
9.1 In this Division:
"acquisition year" has the same meaning as in section 28 of the Act;
"bus" has the same meaning as in the Motor Vehicle Act;
"depreciated value" has the same meaning as in section 19 of the Act;
"interjurisdictional use" means use for interjurisdictional commercial purposes;
"intraprovincial use" means use solely within British Columbia;
"travel ratio" has the same meaning as in section 28 of the Act;
"vehicle taxable value" has the same meaning as in section 28 of the Act.
[en. B.C. Reg. 548/95, s. 3; am. B.C. Reg. 89/96, s. 1.]
Change to interjurisdictional use
9.3 (1) The credit or refund to which a person is entitled under section 33 (1) of the Act must be calculated in accordance with the following formula:
| Credit = TV X CF X TR X T |
where
| TV | = | the vehicle taxable value; | |
| CF | = | the tax credit factor established under subsection (2) for the calendar year in respect of which the credit is claimed; | |
| TR | = | the travel ratio; | |
| T | = | the number of whole or partial calendar months left in the vehicle licence year at the time that the vehicle is licensed, divided by 12. |
(2) The tax credit factor referred to in subsection (1) for the calendar year in respect of which a credit is claimed under this section is the tax credit factor shown opposite that calendar year.
| Calendar Year | Tax Credit Factor |
| the acquisition year of the vehicle | 2.944% |
| the calendar year following the acquisition year | 2.296% |
| the second calendar year following the acquisition year | 1.827% |
| the third calendar year following the acquisition year | 1.488% |
| the fourth calendar year following the acquisition year | 1.247% |
[en. B.C. Reg. 548/95, s. 3, am. B.C. Regs. 303/2002, s. 1; 36/2005, s. 1; 117/2005, Sch. A, s. 1 and Sch. B, s. 1.]
Transfers between multijurisdictional fleets
9.4 If a vehicle that was licensed by a person as part of a fleet (the "first fleet") is, before the end of the fleet licence year applicable to that fleet, licensed by that person as part of a different fleet, the refund to which the person is entitled in respect of that vehicle under section 32 of the Act must be calculated in accordance with the following formula:
| Refund = TP — CR |
where
| TP | = | the tax that would, on the date that the vehicle is transferred from the first fleet, be payable under section 29 of the Act to licence the vehicle in that fleet; | |
| CR | = | a credit calculated under the formula set out in section 9.3 as if T in that formula represented the number of whole or partial calendar months left in the fleet licence year for the first fleet at the time that the vehicle is removed from the first fleet, divided by 12. |
[en. B.C. Reg. 548/95, s. 3.]
Application for credit or refund for extra-provincially licensed vehicles
9.7 Any person entitled to receive a credit or refund under section 32 of the Act in respect of a vehicle must, if that person licenses the vehicle in a jurisdiction other than British Columbia, apply to the commissioner for that refund or credit.
[en. B.C. Reg. 548/95, s. 3; am. B.C. Reg. 220/2010, Sch. 2, s. 11.]
Refund for multijurisdictional buses
9.8 (1) If, before or after the coming into force of this regulation, tax is paid under section 29, 31 or 33 of the Act in respect of a bus used for interjurisdictional commercial purposes, the commissioner, on application and on receipt of evidence satisfactory to the commissioner, must provide a refund to the person who paid the tax.
(2) The amount of the refund payable under subsection (1) must be calculated in accordance with the formula set out in section 29 (2) of the Act except that the percentage amount to be used for rate in that formula, when calculating the refund, is the applicable factor established under subsection (3) or (4) of this section.
(3) For a bus that qualifies for a credit or a refund under section 33 (1) of the Act, the percentage amount to be used for rate, when calculating the refund payable under subsections (1) and (2) of this section for each calendar year in which the tax is paid in respect of the bus, is the rate factor shown opposite that calendar year.
| Calendar Year | Rate Factor |
| the acquisition year | 0.140% |
| the calendar year following the acquisition year | 0.140% |
| the second calendar year following the acquisition year | 0.140% |
| the third calendar year following the acquisition year | 0.140% |
| the fourth calendar year following the acquisition year | 0.140% |
| the fifth calendar year following the acquisition year | 0.761% |
| the sixth calendar year following the acquisition year | 0.835% |
| the seventh calendar year following the acquisition year | 0.917% |
| the eighth calendar year following the acquisition year | 0.934% |
| the ninth and subsequent calendar years following the acquisition year | 1.027% |
(4) For a bus other than a bus referred to in subsection (3), the percentage amount to be used for rate, when calculating the refund payable under subsections (1) and (2) of this section for each calendar year in which the tax is paid in respect of the bus, is the rate factor shown opposite that calendar year.
| Calendar Year | Rate Factor |
| the acquisition year | 0.586% |
| the calendar year following the acquisition year | 0.600% |
| the second calendar year following the acquisition year | 0.618% |
| the third calendar year following the acquisition year | 0.638% |
| the fourth calendar year following the acquisition year | 0.658% |
| the fifth calendar year following the acquisition year | 0.761% |
| the sixth calendar year following the acquisition year | 0.835% |
| the seventh calendar year following the acquisition year | 0.917% |
| the eighth calendar year following the acquisition year | 0.934% |
| the ninth and subsequent calendar years following the acquisition year | 1.027% |
[en. B.C. Reg. 89/96, s. 2, am. B.C. Regs. 303/2002, s. 2; 36/2005, s. 2; 117/2005, Sch. A, s. 2 and Sch. B, s. 2.]
Refund or credit on trade-in vehicle
9.9 (1) For the purposes of section 33.1 of the Act, the refund shall be calculated as follows:
| Refund = (TP ÷ 12) X (MR) |
| where | ||
| TP | = | the tax paid on the trade-in vehicle at the beginning of the vehicle licence year in which it is traded in against the purchase of another multi-jurisdictional vehicle |
| MR | = | the number of whole months remaining in the trade-in vehicle's vehicle licence year at the time it is traded in against the purchase of another multi-jurisdictional vehicle. |
(2) A person claiming a refund under this section must provide to the commissioner satisfactory documentation indicating that the applicable tax under Division 3 of Part 2 of the Act has been paid on both the trade-in vehicle and the multi-jurisdictional vehicle acquired as a result of the trade.
(3) The amount of the refund calculated under subsection (1) may be applied as a credit against the tax payable on the new multi-jurisdictional vehicle at the time that vehicle is licensed for use as a multi-jurisdictional vehicle.
[en. B.C. Reg. 260/99, s. 5.]
Division 10 - Telecommunications
Exemption for 1-800 numbers
10 For the purposes of section 56 (c) of the Act, 1-800, 1-888 and 1-877 telephone and facsimile services are exempt from tax, other than when acquired for family or domestic use.
[en. B.C. Reg. 94/98, s. 5.]
Exemption for emergency communication system telecommunication services
10.1 For the purposes of section 56 (d) of the Act, telecommunication services purchased by the provincial government, an agent of the provincial government, a regional district, a municipality, a fire department, a police department, the Greater Vancouver Transportation Authority, the Victoria Airport Authority, the British Columbia Ambulance Service, the Emergency Health Services Commission, British Columbia Transit or the University of Victoria from E-Comm Emergency Communications for Southwest British Columbia Incorporated or the Capital Region Emergency Service Telecommunications (CREST) Incorporated in relation to their emergency communications systems are exempt from tax.
[en. B.C. Reg. 176/2005, s. (b).]
Division 12 - Taxable and Non-Taxable Tangible Personal Property Sold for a Single Price
Limitations on application of section 69.1 of the Act
12 (1) In this section:
"taxable component" means tangible personal property or a service that would be subject to tax if purchased separately from other tangible personal property or services;
"non-taxable component" means tangible personal property or a service that, if purchased separately from other tangible personal property or services, would not be subject to tax or would be exempt from tax.
(2) Section 69.1 of the Act applies only if a taxable component is sold with a non-taxable component for a single price and the taxable component,
(a) is either
(i) prepackaged with the non-taxable component, or
(ii) not ordinarily sold by the seller separately from the non-taxable component,
(b) is not being provided as a promotional distribution,
(c) does not include a telecommunication service or legal service,
(d) is not liquor, and
(e) has a value of $50 or less.
[en. B.C. Reg. 264/2000, s. 4; am. B.C. Reg. 439/2004, s. 12.]
Purchase price
12.1 For the purposes of paragraph (f.1) (i) of the definition of "purchase price" in section 1 of the Act, the prescribed amount is $500.
[en. B.C. Reg. 439/2004, s. 13.]
Division 13 - Exemptions for Production Machinery or Equipment
Definitions and interpretation
13.1 (1) In this Division:
"custom software" means modifications to software, modified software and custom software referred to in paragraphs (a), (b) and (c) of the definition of "software" in section 1 of the Act;
"exclusively" means more than 90%;
"local government body" means "local government body" as defined in Schedule 1 of the Freedom of Information and Protection of Privacy Act;
"local government corporation" means a corporation whose taxable income, determined for the purposes of the Income Tax Act (Canada), is exempt from income tax under section 149 (1) (d.5) or (d.6) of that Act;
"logging" means
(a) felling or bucking trees,
(b) skidding or otherwise moving trees or logs to a landing or other first point of accumulation, or
(c) loading, unloading, sorting, storing or processing trees or logs at landings, log dumps, sort yards, dry land sorts, booming grounds or mill yards,
but does not include
(d) construction or maintenance of landings, log haul roads or other roads, or
(e) silviculture;
"machinery or equipment" includes apparatus;
"manufacture" means
(a) fabricate or manufacture tangible personal property to create a new product that is substantially different from the material or property from which it was made,
(b) process tangible personal property by performing a series of operations or a complex operation that results in a substantial change in the form or other physical or chemical characteristics of the tangible personal property,
(c) the development of software and custom software, and
(d) the extraction or processing of minerals, petroleum or natural gas,
but does not include
(e) growing, harvesting or producing agriculture or aquaculture products or raising livestock,
(f) logging,
(g) the production of television programs, radio programs, motion pictures, commercials, master films, master video tapes, or any similar product in electronic format,
(h) the provision of a service, other than a service referred to in section 13.14,
(i) cleaning, painting, staining, blending, combining, grading, grouping, mixing, packaging, re-packaging, sorting or testing tangible personal property unless such activities are one step in, or occur immediately after, an activity referred to in paragraph (a), (b) or (d) of this definition and occur at
(i) a manufacturing site described in section 13.2 (2),
(ii) a mine site described in section 13.2 (3), or
(iii) a well site, processing plant or refinery described in section 13.2 (4),
(j) the transformation of tangible personal property from a gaseous, liquid or solid state to another one of those states by means of a change in temperature or pressure, unless the transformation by one of those means is one step in, or occurs immediately after, an activity referred to in paragraph (a), (b) or (d) of this definition and occurs at
(i) a manufacturing site described in section 13.2 (2),
(ii) a mine site described in section 13.2 (3), or
(iii) a well site, processing plant or refinery described in section 13.2 (4), or
(k) the generation of heat, unless such activity is one step in an activity referred to in paragraph (a), (b) or (d) of this definition and occurs at
(i) a manufacturing site described in section 13.2 (2),
(ii) a mine site described in section 13.2 (3), or
(iii) a well site, processing plant or refinery described in section 13.2 (4);
"manufactured cost" means the manufacturer's
(a) direct cost of materials,
(b) direct cost of labour, and
(c) manufacturing overhead,
but does not include federal goods and services tax;
"manufacturer" means a person who manufactures a particular class of tangible personal property
(a) for sale, if there is a reasonable expectation that the total value of sales of that class of tangible personal property will exceed $30 000 per year,
(b) for lease or for the person's own business use, if there is a reasonable expectation that the total manufactured cost of that class of tangible personal property will exceed $30 000 per year, or
(c) for a purpose referred to in both paragraphs (a) and (b), if the total value of sales is $30 000 or less and there is a reasonable expectation that the total manufactured cost of that class of tangible personal property will exceed $30 000 per year,
but does not include persons excluded under section 13.10;
"marketable product" means petroleum or natural gas, whether it occurs naturally or results from the refining or processing of petroleum or natural gas, that is
(a) available for sale for direct consumption as a domestic, commercial or industrial fuel or as an industrial raw material, or
(b) delivered to a storage facility;
"primarily" means more than 50%;
"qualifying tangible personal property" means the particular class of tangible personal property referred to in the definition of manufacturer;
"tangible personal property" includes custom software.
(2) In this Division
(a) Repealed. [B.C. Reg. 32/2006, s. 4 (c).]
(b) a reference to "use" in relation to "exclusively" and "primarily" does not include storing, keeping or retaining,
(c) a reference to tangible personal property in paragraphs (a), (b) and (c) of the definition of "manufacturer" means tangible personal property that is manufactured in British Columbia, and
(d) a reference to "purchased or leased" with respect to machinery or equipment includes machinery or equipment that is brought or sent into British Columbia or the delivery of which is received in British Columbia.
(3) In this Division, the use of machinery or equipment in the construction of buildings, site preparation or the construction or maintenance of roads is not a use that qualifies machinery or equipment for exemption.
[en. B.C. Reg. 242/2001, s. 4; am. B.C. Regs. 55/2003, s. 4; 32/2006, s. 4; 36/2008, s. 11; 124/2009, s. (a).]
Manufacturers
13.2 (1) For the purposes of section 76 (1) (k) of the Act and subject to subsections (2) to (4), the following are exempt from tax if purchased or leased by a manufacturer:
(a) machinery or equipment for use primarily and directly in the manufacture of qualifying tangible personal property;
(b) machinery or equipment for use primarily and directly in the manufacture of tangible personal property for use in the manufacture of qualifying tangible personal property.
(2) Subject to sections 13.9 and 13.10, if the machinery or equipment is for use in relation to a manufacturing operation other than an operation referred to in subsections (3) and (4), the exemption applies only in respect of machinery or equipment that is used at the manufacturing site from the point at which the raw material is received to the point at which the finished product is first stored or first placed on a vehicle, railway rolling stock, vessel, aircraft or other conveyance for removal from the manufacturing site, whichever occurs first.
(3) Subject to sections 13.9 and 13.10, if the machinery or equipment is for use in relation to the operation of a mineral mine, the exemption applies only in respect of the machinery or equipment that is for use at the mine site from the point at which the raw material is extracted from the ground to the point at which the finished product is placed on a vehicle, railway rolling stock, vessel, aircraft or other conveyance for removal from the mine site.
(4) Subject to sections 13.9 and 13.10, if the machinery or equipment is for use in relation to the processing of petroleum or natural gas, the exemption applies only in respect of the machinery or equipment that is for use at the well site, or at a processing plant or refinery up to the point at which the petroleum or natural gas has become a marketable product, including
(a) generators located at the well site, and
(b) pipes, regulators, compressors and other related equipment dedicated to the transmission of waste gas, composed primarily of hydrogen sulphide and carbon dioxide, within a gas processing plant or from a gas processing plant to a disposal well for the sole purpose of injecting waste gas into the disposal well for permanent disposal.
[en. B.C. Reg. 242/2001, s. 4; am. B.C. Reg. 36/2008, s. 12.]
Local government power generation
13.2.1 (1) For the purposes of section 76 (1) (k) of the Act and subject to subsections (2) and (3), the following are exempt from tax if purchased or leased by a local government body or local government corporation:
(a) machinery or equipment for use primarily and directly to generate electricity;
(b) machinery or equipment for use primarily and directly to generate, at a cogeneration plant, electricity and heat;
(c) machinery or equipment for use primarily and directly in the manufacture of tangible personal property for a use described in paragraph (a) or (b).
(1.1) For the purposes of section 76 (1) (k) of the Act and subject to subsections (2) and (3), machinery or equipment that is purchased or leased by a local government body or local government corporation for use primarily and directly in the transmission or distribution of tangible personal property at a manufacturing site is exempt from tax if
(a) the tangible personal property transmitted or distributed is primarily
(i) electricity generated by the local government body or local government corporation,
(ii) electricity and heat generated by the local government body or local government corporation at a cogeneration plant,
(iii) tangible personal property that is for use as an input in the generation of electricity or the generation of electricity and heat at a cogeneration plant, or
(iv) tangible personal property that is to be attached to or processed, fabricated, manufactured or incorporated into tangible personal property for use as an input in the generation of electricity or the generation of electricity and heat at a cogeneration plant, and
(b) the machinery or equipment is located at the manufacturing site.
(2) Subject to section 13.9, the exemptions under subsection (1) and (1.1) apply only in respect of machinery or equipment that is used at the manufacturing site from the point at which the raw material is received to the point at which the finished product is first stored or available for use.
(3) A local government body or local government corporation is eligible for an exemption under subsection (1) or (1.1) only if the generation referred to in subsection (1) is for one of the following purposes:
(a) for sale, and the local government body or local government corporation has a reasonable expectation that the total value of sales will exceed $30 000 per year;
(b) for its own use, and the local government body or local government corporation has a reasonable expectation that the total manufactured cost of the electricity or heat for its own use will exceed $30 000 per year;
(c) for a purpose referred to in both paragraphs (a) and (b), if the total value of sales is $30 000 or less and there is a reasonable expectation that the total manufactured cost of the electricity or heat will exceed $30 000 per year.
[en. B.C. Reg. 36/2008, s. 13; am. B.C. Reg. 30/2009, s. 5.]
Logging
13.3 (1) For the purposes of section 76 (1) (k) of the Act and subject to sections 13.9 and 13.10, machinery or equipment is exempt from tax if purchased or leased by a person who, for commercial purposes, regularly engages in logging and that machinery or equipment is for use in logging exclusively
(a) for felling trees,
(b) for the removal of logs from the stump and their deposit in a landing or other first accumulation point,
(c) for loading, unloading, sorting, storing or processing trees or logs at landings, log dumps, sort yards, dry land sorts, booming grounds or mill yards,
(d) for launching or recovering, in the course of underwater logging operations, exempt machinery or equipment needed for the purpose set out in paragraph (a) and that use is exclusively on a vessel, or
(e) for producing or regulating electricity to operate exempt machinery or equipment in underwater logging operations and that use is exclusively on a vessel.
(2) The exemption under subsection (1) (e) does not apply to machinery or equipment, including transformers, pipes, valves and regulators, for use in the transmission or distribution of tangible personal property unless the machinery or equipment is for use on a vessel used exclusively in underwater logging operations.
[en. B.C. Reg. 242/2001, s. 4; am. B.C. Reg. 233/2006, s. 1; 124/2009, Sch. s. 1 (a).]
Exploration for, discovery of or development of petroleum or natural gas
13.4 For the purposes of section 76 (1) (k) of the Act and subject to sections 13.9 and 13.10, the following machinery or equipment is exempt from tax if purchased or leased by a person who, for commercial purposes, regularly engages in the exploration for, discovery of or development of petroleum or natural gas if that machinery or equipment is for use exclusively in the exploration for, discovery of or development of petroleum or natural gas:
(a) drilling rigs, including derricks, substructures, support mats and foundations, circulating systems, pumps, cement equipment and engines or power plants that are part of a drilling rig, but not including automotive units on which the drilling rig is transported, cementing trucks or fracturing trucks;
(b) truck mounted service rigs;
(b.1) portable doghouses, winches, and pickers, but not the automotive units on which the equipment is transported;
(b.2) boilers and steamers required for heating blowout preventers, but not the automotive units on which the equipment is transported;
(b.3) parts of a pump truck, including
(i) pumps, tanks, lines, pipes, controls, manifolds, drop boxes, mixing hoppers and valves, and
(ii) engines and transmissions,
but not including the automotive units on which the parts are transported;
(c) hardware for use during the drilling process, including drill bits, drill collars, drill pipes, blowout preventors, casing, tubing, fittings, couplings and thread protectors;
(d) equipment for use in well logging and drill stem testing, including instrumentation;
(e) machinery or equipment for use during the production testing phase, including separator vessels, dehydrators and heaters, pressure piping systems and appurtenances, flare stacks, pumps and motors.
[en. B.C. Reg. 242/2001, s. 4; am. B.C. Reg. 33/2007, s. 13.]
Exploration for minerals or development of mines
13.5 (1) For the purposes of section 76 (1) (k) of the Act and subject to sections 13.9 and 13.10, machinery or equipment is exempt from tax if purchased or leased by a person who, for commercial purposes, regularly engages in exploration for minerals or the development of mines and that machinery or equipment is for use exclusively in the exploration for minerals or the development of mines.
(2) The exemption under subsection (1) includes the following machinery or equipment:
(a) drilling rigs, drills, drill bits and rock saws;
(b) mucking machines, slushers, mine cars and rails, trammers, hoists and skips;
(c) bulldozers, backhoes and excavators;
(d) pickaxes and shovels;
(e) safety equipment, pumps, ventilating equipment and compressors;
(f) generators or motors used to operate exempt equipment;
(g) haulage equipment;
(h) assay equipment;
(i) wire rope and seismic shot-hole casing;
(j) casing guides and cement equipment but not including cement trucks.
[en. B.C. Reg. 242/2001, s. 4.]
Geophysical surveying
13.6 For the purposes of section 76 (1) (k) of the Act and subject to sections 13.9 and 13.10, the following machinery or equipment is exempt from tax if purchased or leased by a person who, for commercial purposes, regularly engages in exploration for petroleum, natural gas or minerals or the development of petroleum, natural gas or mineral deposits and that machinery or equipment is for use exclusively in exploration for or development of petroleum, natural gas or minerals:
(a) magnetometers, gradiometers and magnetic susceptibility meters;
(b) gravity meters and other instruments designed to measure the elements, variations and distortions of the natural gravitational force;
(c) field potentiometers, meggers, non-polarizing electrodes and electrical equipment for making measurements in drill holes;
(d) equipment for electrical or electromagnetic surveying including self-potential meters, resistivity survey equipment, time and frequency domain induced polarization equipment and time and frequency electromagnetic surveying equipment and inductive conductivity probes;
(e) ground penetrating radar equipment and side looking aperture radar;
(f) equipment for remote sensing including ultraviolet lamps and reflectance, infrared and hyperspectral spectrometers;
(g) instruments or equipment for seismic prospecting including the recording system, seismic instrumentation, geophones, cables, data processing units, global positioning and navigation systems, recorder box, blasting system, blaster and controller, seismic drilling equipment, heli-drills, enviro-drills, vibrators and integrated navigation systems;
(h) scintillometers, spectral gamma-gamma density and geiger muller counters, gamma-ray spectrometers, potassium gradiometers and other instruments for radioactive methods of geophysical prospecting;
(i) acoustical survey equipment including sonar, side scanning sonar and full wave form sonic loggers;
(j) electrical and electronic amplifying devices and electrical thermostats designed for use with any of the machinery or equipment described in paragraphs (a) to (i).
[en. B.C. Reg. 242/2001, s. 4.]
Pollution control
13.7 For the purposes of section 76 (1) (k) of the Act and subject to sections 13.9 and 13.10, machinery or equipment for use exclusively and directly in the detection, prevention, measurement, treatment, reduction or removal of pollutants in water, soil or air is exempt from tax if
(a) the pollutants are attributable to the manufacture of tangible personal property,
(b) the machinery or equipment is located at a manufacturing site, mine site, well site, natural gas processing plant or petroleum refinery referred to in section 13.2, and
(c) the machinery or equipment is purchased or leased by a person who is eligible to purchase or lease machinery or equipment that qualifies for exemption under this Division except for this section.
[en. B.C. Reg. 242/2001, s. 4; am. B.C. Regs. 55/2004, s. 6; 36/2008, s. 14.]
Waste management
13.8 For the purposes of section 76 (1) (k) of the Act and subject to sections 13.9 and 13.10, machinery or equipment for use exclusively and directly in carrying refuse or waste from the machinery or equipment referred to in section 13.2, or for use exclusively and directly for exhausting dust or noxious fumes from the machinery or equipment referred to in section 13.2, is exempt from tax if
(a) the refuse, waste, dust or noxious fumes are attributable to the manufacture of tangible personal property,
(b) the machinery or equipment is located at a manufacturing site, mine site, well site, natural gas processing plant or petroleum refinery referred to in section 13.2, and
(c) the machinery or equipment is purchased or leased by a person who is eligible to purchase or lease machinery or equipment that would qualify for exemption under this Division except for this section.
[en. B.C. Reg. 55/2004, s. 7; am. B.C. Reg. 36/2008, s. 14.]
Transmission or distribution of tangible personal property by manufacturers of qualifying tangible personal property
13.8.1 For the purposes of section 76 (1) (k) of the Act and subject to sections 13.9 to 13.10, machinery or equipment that is purchased or leased by a manufacturer for use primarily and directly in the transmission or distribution of tangible personal property at a manufacturing site, mine site, well site, natural gas processing plant or petroleum refinery referred to in section 13.2 is exempt from tax if
(a) the tangible personal property transmitted or distributed is primarily
(i) qualifying tangible personal property,
(ii) tangible personal property that is to be attached to or processed, fabricated, manufactured or incorporated into qualifying tangible personal property, or
(iii) tangible personal property that is to be attached to or processed, fabricated, manufactured or incorporated into tangible personal property for use in the manufacture of qualifying tangible personal property, and
(b) the machinery or equipment is located at the manufacturing site, mine site, well site, natural gas processing plant or petroleum refinery.
[en. B.C. Reg. 30/2009, s. 6.]
Transmission or distribution of electricity by manufacturers of qualifying tangible personal property other than electricity
13.8.2 For the purposes of section 76 (1) (k) of the Act and subject to sections 13.9 to 13.10, transformers, and converters, inverters, regulators, breakers or switches designed for use and used with transformers, that are purchased and leased by a manufacturer of qualifying tangible personal property, other than electricity, for use exclusively in the transmission or distribution of electricity at a manufacturing site, mine site, well site, natural gas processing plant or petroleum refinery referred to in section 13.2 are exempt from tax if
(a) the electricity is for use
(i) primarily and integrally in an activity included in the definition of "manufacture" in section 13.1, or
(ii) primarily to power machinery or equipment that is exempt under section 13. 2 (1) or 13.7 to 13.8.1, and
(b) the transformers, converters, inverters, regulators, breakers or switches are located at the manufacturing site, mine site, well site, natural gas processing plant or petroleum refinery.
[en. B.C. Reg. 30/2009, s. 6.]
Exclusions from exemption under section 76 (1) (k) of the Act
13.9 Despite anything in sections 13.2 to 13.8.2, the exemption under section 76 (1) (k) of the Act does not apply to the following:
(a) buildings, furnishings, camp equipment, or machinery or equipment related to the use of a building as a building;
(b) logging trucks, well servicing trucks or any vehicles designed so that they can be used on a public highway, unless exempted under section 13.4 (b) or 13.5 (2) (c);
(c) vessels other than
(i) a boom boat purchased or leased by a person described in section 13.3 (1) and used exclusively for purposes described in section 13.3 (1) (c), or
(ii) a vessel purchased or leased by a person described in section 13.3 (1) and used exclusively in underwater logging operations to carry exempt machinery or equipment for one or more of the purposes set out in section 13.3 (1) (a), (b), (d) and (e);
(c.1) railway rolling stock, locomotive engines and non-turbine aircraft;
(d) electric generators and electric alternators that are portable or mobile, including drive motors for them, generator and alternator sets that are portable or mobile, stand-by electric generators and stand-by electric alternators, including drive motors, and standby-by generator and stand-by alternator sets unless exempted under section 13.2 (4) (a), 13.3 (1) (e) or 13.5 (2) (f);
(e) Repealed. [B.C. Reg. 30/2009, s. 7.]
(f) pipes, valves, fittings, pumps, compressors, regulators and equipment ancillary to any machinery or equipment that is for use in transporting or distributing petroleum or natural gas from the well site to the processing plant or refinery or between processing plants, or for use in transporting a marketable product, unless exempted under section 13.2 (4) (b);
(g) bases and foundations that become a part of realty;
(h) scaffolding, walkways, catwalks and similar items unless such items are an integral part of machinery or equipment that is exempt under this Division and the items are sold or leased as a part of that machinery or equipment;
(i) office equipment.
[en. B.C. Reg. 242/2001, s. 4; am. B.C. Regs. 55/2003, s. 5; 109/2006, s. (a); 233/2006, s. 2; 36/2008, s. 14; 30/2009, s. 7; 124/2009, Sch. s. 1 (b) and (c).]
Additional exclusions — machinery and equipment used to transmit or distribute tangible personal property
13.9.1 The exemption under section 13.2 does not apply to machinery or equipment, including transformers, pipes, valves and regulators, for use in the transmission or distribution of tangible personal property unless the machinery or equipment is exempt under section 13.8.1 or 13.8.2.
[en. B.C. Reg. 124/2009, Sch. s. 1 (d).]
Persons excluded from exemption under section 76 (1) (k) of the Act
13.10 The exemption under section 76 (1) (k) of the Act does not apply to the following:
(a) a caterer;
(b) a restaurateur or other person who prepares food products for retail sale on the premises where the food is prepared unless the retail sales of those food products comprise less than 10% of that person's total sales;
(c) the government and its agents, including agencies, boards and commissions, but excluding the British Columbia Hydro and Power Authority, the British Columbia Railway Company, the Columbia Power Corporation and the Insurance Corporation of British Columbia;
(d) subject to section 13.2.1, a local government body;
(e) subject to section 13.2.1, a corporation whose taxable income, determined for the purposes of the Income Tax Act (Canada), is exempt from income tax under section 149 (1) (d) to (d.6) of that Act, but excluding the British Columbia Hydro and Power Authority, the British Columbia Railway Company, the Columbia Power Corporation and the Insurance Corporation of British Columbia;
(f) schools, school boards and universities, including business, trade and vocational schools;
(g) hospitals;
(h) regional health boards and community health councils designated under the Health Authorities Act.
[en. B.C. Reg. 242/2001, s. 4; am. B.C. Reg. 36/2008, s. 15.]
Exemption for parts and services for fixtures
13.10.1 For the purposes of sections 13.10.2 and 13.10.3 (2) (a), "machinery or equipment that is exempt from tax under this Division" includes machinery or equipment that would be exempt from tax under this Division were it not a fixture prescribed under paragraph (d) of the definition of "tangible personal property" in section 1 of the Act.
[en. B.C. Reg. 105/2002, s. 3.]
Exemption for parts
13.10.2 (1) Parts purchased or leased for use on machinery or equipment that is exempt from tax under this Division are exempt from tax if purchased or leased by a person who is eligible to purchase or lease machinery or equipment exempt from tax under this Division.
(2) Parts purchased or leased by a person to assemble machinery or equipment that would have been exempt from tax under this Division had it been purchased or leased by that person as machinery or equipment are exempt from tax.
(3) Subject to subsection (5), materials purchased or leased to repair, maintain or modify machinery or equipment that is exempt from tax under this Division are exempt from tax if the materials
(a) are purchased or leased by a person who is eligible to purchase or lease machinery or equipment exempt from tax, and
(b) remain part of or attached to the machinery or equipment after the repair, maintenance or modification of that machinery or equipment.
(4) Subject to subsection (5), materials purchased or leased by a person to assemble machinery or equipment that would have been exempt from tax under this Division, had the assembled machinery or equipment been purchased or leased by the person as machinery or equipment, are exempt from tax if the materials remain part of, or attached to, the assembled machinery or equipment after assembly.
(5) Materials purchased or leased for a purpose described in subsection (3) or (4) do not qualify for exemption under this section if they are used primarily for either of the following purposes:
(a) lubricating the machinery or equipment referred to in those subsections;
(b) repairing, maintaining, modifying, assembling or making any of the following:
(i) bases and foundations, that are or become a part of realty, for the machinery or equipment;
(ii) scaffolding, walkways, catwalks and similar items unless such items
(A) are an integral part of the machinery or equipment referred to in those subsections, and
(B) are sold or leased as part of that machinery or equipment.
(6) For the purposes of subsection (3), "modify", in respect of machinery or equipment, means to facilitate or enhance the performance by the machinery or equipment of the function that the machinery or equipment performs in relation to the use that, under this Division, qualifies it as exempt from tax.
[en. B.C. Reg. 105/2002, s. 3; am. B.C. Regs. 32/2006, s. 5; 124/2009, Sch. s.1 (e).]
Exemption for services
13.10.3 (1) Taxable services provided to machinery or equipment that is exempt from tax under this Division are exempt from tax if purchased by a person who is eligible to purchase or lease machinery or equipment exempt from tax under this Division.
(2) Tangible personal property is exempt from tax if
(a) the tangible personal property is used in the course of providing a service to machinery or equipment that is exempt from tax under this Division,
(b) the tangible personal property remains part of, or attached to, the machinery or equipment after the service has been provided,
(c) the service provided to the machinery or equipment
(i) is a taxable service, or
(ii) does not constitute a taxable service merely because
(A) the machinery or equipment to which the service is provided is a fixture prescribed under paragraph (d) of the definition of "tangible personal property" in section 1 of the Act, or
(B) the machinery or equipment to which the service is provided is a fixture prescribed under paragraph (b) of the definition of "taxable service" in section 1 of the Act,
(d) the machinery or equipment to which the service is provided is owned or leased by a person who is eligible to purchase or lease machinery or equipment exempt from tax under this Division, and
(e) the tangible personal property is not excluded from the exemption in section 76 (1) (c.1) of the Act by virtue of section 76 (3) and (4) of the Act.
[en. B.C. Reg. 105/2002, s. 3.]
Certification
13.11 (1) A person, including a contractor described in section 13.13 (2) (a), who claims an exemption under this Division in respect of machinery, equipment, parts, materials or taxable services, must provide the vendor or lessor with a certification, in a form satisfactory to the commissioner, certifying that the person is eligible for the exemption and that the machinery, equipment, parts or materials being purchased or leased, or for which taxable services are being purchased, qualify for the exemption.
(2) A vendor or lessor must not make an exempt sale or lease under this Division unless the vendor or lessor has obtained from the purchaser or lessee the certification referred to in subsection (1).
(3) Despite subsection (2), if a vendor or lessor has reason to believe that a person who claims an exemption under this Division is not entitled to the exemption claimed, or that the machinery or equipment is not exempt under this Division, the vendor or lessor must
(a) collect from the person the tax that would be payable under the Act if the exemption did not apply, and
(b) advise the person to apply to the commissioner for a refund of tax the person claims to have paid in error.
(4) The vendor or lessor must retain the certification referred to in subsection (2) to substantiate the non-collection of tax.
(5) If a vendor or lessor does not collect tax from a person who claims, but is not entitled to, an exemption under this Division, the vendor or lessor is not liable for a penalty imposed under section 115 (5) of the Act, provided the conditions under subsections (2), (3) and (4) of this section have been met.
[en. B.C. Reg. 242/2001, s. 4; am. B.C. Regs. 105/2002, s. 4; 55/2003, s. 6; 124/2009, Sch. s. 1 (f).]
Vehicle mounted machinery or equipment
13.12 (1) Subject to subsection (2), if
(a) machinery or equipment is mounted on a vehicle that is not exempt under this Division,
(b) the machinery or equipment would be exempt from tax under this Division if purchased or leased separately from the vehicle,
(c) the vendor or lessor makes a reasonable allocation of the portion of the purchase price or lease price that represents the purchase or lease price of the machinery or equipment, and
(d) the allocation of the purchase or lease price for the machinery or equipment is separately stated on the sales or purchase invoice,
the purchaser or lessee is exempt from tax on the amount allocated for the machinery or equipment.
(2) An allocation made under subsection (1) must be based on the price at which the legal and beneficial interest in the vehicle, without the machinery or equipment, would, if unencumbered, be conveyed by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market.
(3) If an allocation made under subsection (1) (c) is not made in accordance with subsection (2), the commissioner may make an allocation that is in accordance with subsection (2) and assess tax based on that allocation.
[en. B.C. Reg. 242/2001, s. 4.]
Machinery or equipment installed by contractor
13.13 (1) In this section:
"eligible person" means a person that is eligible for an exemption under this Division, other than under this section, in relation to machinery, equipment or a part that will be used for an eligible purpose;
"eligible purpose", in relation to machinery, equipment or a part, means a purpose for which the machinery, equipment or part will be used that, under this Division, qualifies it to be exempt from tax if purchased by an eligible person.
(2) For the purposes of section 76 (1) (k) of the Act and subject to section 13.9 and 13.10, machinery, equipment or a part that is prescribed in this Division as exempt from tax if purchased or leased by an eligible person for an eligible purpose is exempt from tax if
(a) the machinery, equipment or part
(i) is purchased in, or brought or sent into, British Columbia, or
(ii) the delivery of which is received in British Columbia
by a contractor to satisfy the contractor's obligations under a lump sum or fixed price contract with an eligible person,
(b) the machinery, equipment or part
(i) on installation, will become a fixture described in section 2.52 (b), and
(ii) will be used by the eligible person for an eligible purpose, and
(c) the eligible person provides the contractor with a signed certification in a form satisfactory to the commissioner certifying that
(i) the person is an eligible person, and
(ii) the machinery, equipment or part, once installed, will be used by the eligible person for an eligible purpose.
(3) For the purposes of section 138 (1) (q) of the Act, if
(a) a vendor does not collect tax that it appears should have been collected from a contractor, or
(b) a contractor does not pay tax that it appears should have been paid by the contractor
because of incorrect information provided in a certification under subsection (2) (c), the commissioner must impose the penalty under section 115 (5.1) of the Act against the person who certified the incorrect information.
[en. B.C. Reg. 55/2003, s. 7.]
Services provided to a manufacturer
13.14 For the purposes of section 76 (1) (k) of the Act, machinery or equipment purchased or leased by a person who provides a service, other than a telecommunication service or a legal service, to a manufacturer is exempt from tax if
(a) the service
(i) consists of manufacturing tangible personal property for the manufacturer, and
(ii) is provided to, or results in the creation of, tangible personal property that will be, or will become part of, the qualifying tangible personal property of the manufacturer,
(b) the machinery or equipment is used primarily and directly in providing a service referred to in paragraph (a) (i) or (ii),
(c) the requirements of section 13.2 (2), (3) and (4) have been met, and
(d) there is a reasonable expectation that the total value of sales of service referred to in paragraph (a) will exceed $30 000 per year.
[en. B.C. Reg. 32/2006, s. 6.]
Division 14 - Application for Refund on Purchases Made with PAC-Raised Funds
Refund application from a PAC
14.1 For the purposes of section 88.1 (4) of the Act, an application by a PAC under section 88.1 (2) of the Act must include
(a) the original invoice for each purchase of tangible personal property acquired with PAC-raised funds, showing the purchase price, the amount of tax paid and the date of purchase,
(b) a statement signed by an officer of the PAC
(i) certifying that PAC-raised funds were used to purchase the tangible personal property referred to in paragraph (a) of this section, and
(ii) setting out, for each purchase of tangible personal property referred to in paragraph (a), the amount of PAC-raised funds used for that purchase, and
(c) a statement signed by an administrator of the school to which the tangible personal property referred to in paragraph (a) was given certifying that the tangible personal property was given to the school for its use.
[en. B.C. Reg. 203/2002.]
Refund application from a school board
14.2 For the purposes of section 88.1 (4) of the Act, an application by a school board under section 88.1 (3) of the Act must include
(a) the original invoice for each purchase of tangible personal property acquired with PAC-raised funds, showing the purchase price, the amount of tax paid and the date of purchase,
(b) a statement signed by a person who has been authorized by the school board to provide the statement
(i) certifying that PAC-raised funds were used to purchase the tangible personal property referred to in paragraph (a), and
(ii) setting out, for each purchase of tangible personal property referred to in paragraph (a), the amount of PAC-raised funds used for the purchase and the amount of PAC-raised funds provided by each PAC contributing funds to that purchase, and
(c) one of the following for each of the PACs that provided the funds referred to in paragraph (a):
(i) a statement signed by an officer of the PAC certifying that the PAC provided the amount of funds attributed to it in the statement referred to in paragraph (b) (ii);
(ii) a copy of the receipt issued to the PAC by the school board for the PAC's contribution of the PAC-raised funds referred to in paragraph (a), on which has been noted the tangible personal property to be purchased with those funds.
[en. B.C. Reg. 203/2002.]
Division 15 - Exemption for Tangible Personal Property Used for Hydroelectric Power Generation
Prescribed tangible personal property
15.1 (1) Subject to subsection (2), the following tangible personal property is prescribed for purposes of section 77 (a) of the Social Service Tax Act and exempt from taxation imposed by sections 5 to 25 of the Act:
inflatable rubber weirs and controls
steel weirs and controls
trash racks, with or without self-clearing apparatus, to prevent debris from entering the penstock
fish and sediment screens to prevent fish and sediment from entering the penstock
sluice gates to remove sediment from the approach channel to the penstock to prevent damage to the penstock and power plant equipment
control gates, intake valves and stoplogs to control the flow of water through the weir and into the penstock
manufactured pipe that is made out of concrete, steel, iron, fibreglass, wood-staves or high density polyethylene
penstock stiffening rings
manhole entrances for penstock inspection and cleaning
pressure release valves and surge facilitators
expansion joints, surface penstock pedestals, air release valves and penstock scour valves
tunnel bulkheads, access hatches and drain valves
penstock pipe bridges
ring girders
penstock ventilation pipe
penstock intake power supply
(2) For the purposes of subsection (1), tangible personal property is exempt from taxation if it is
(a) manufactured machinery or equipment,
(b) used at the point of diversion from the water source as penstock intake or diversion equipment, or as penstock pipe to provide water from the point of diversion from the water source to a hydroelectric power plant, and
(c) part of a penstock system for a hydroelectric power plant validly licensed under the Water Act.
[en. B.C. Reg. 270/2003; am. B.C. Regs. 55/2004, s. 8; 45/2005, s. 6; 220/2010, Sch. 2, s. 12.]
Division 16 - Tangible Personal Property Incidental to a Sale
Incidental provision of tangible personal property
16.1 (1) For the purposes of the definition of "sale" in section 1 of the Act, the provision of tangible personal property is merely incidental to a contract for the provision of services that are not subject to tax under the Act in the following prescribed circumstances:
(a) in respect of the contract,
(i) the fundamental and overriding objective of the contract is the acquisition of the service and not the acquisition of the tangible personal property,
(ii) there is no separate purchase price for the tangible personal property, and
(iii) the total consideration payable for the service, including the tangible personal property provided, is the same as, or only marginally different from, what would be the total consideration payable for the service if the tangible personal property were not provided;
(b) the tangible personal property is an original blueprint on paper, disk or other medium provided by an engineer or architect under a contract for professional services;
(c) the tangible personal property is a scale model provided by an engineer or architect under a contract for professional services;
(d) the tangible personal property is a master audio recording on tape, disk or other medium provided under a contract with a recording studio for the use of their facilities and professional services;
(e) the tangible personal property is a master recording on tape, disk or other medium intended for general distribution, of
(i) a motion picture production,
(ii) a television production,
(iii) a radio production, or
(iv) a training video or film,
provided under a contract with a producer for professional services;
(f) the tangible personal property is an original graphic design on paper, disk or other medium provided by a graphic designer under a contract for professional services;
(g) the tangible personal property is the original design of advertising material on paper, disk, tape or other medium provided under a contract for professional services.
(2) For the purposes of subsection (1), "original" and "master" mean the first final version and do not include any subsequent copies.
[en. B.C. Reg. 439/2004, s. 14.]
Division 17 - Innovative Clean Energy Fund Levy
Energy products
17.1 For the purposes of section 68.01 of the Act, "energy product" does not include the following:
(a) fuel oil used for purposes other than heating, cooling or raising steam;
(b) propane, other than propane in a vaporized form delivered
(i) by a public utility within the meaning of the Utilities Commission Act,
(ii) by pipe, and
(iii) to purchasers at the place at which the propane will be used;
(c) kerosene.
[en. B.C. Reg. 203/2007, Sch. s. 2.]
Rate of levy
17.2 For the purposes of section 68.01 (3) and (4) (c) of the Act, the applicable rate is 0.4 percent.
[en. B.C. Reg. 203/2007, Sch. s. 2.]
Maximum amount
17.3 For the purposes of section 68.01 (9) (a) of the Act,
(a) the maximum amount of the levy is $100 000, and
(b) the prescribed period of time is the 12 month period beginning September 1, 2007, and each successive 12 month period beginning September 1 in every year.
[en. B.C. Reg. 203/2007, Sch. s. 2.]
Exemptions
17.4 (1) In this section, "spouse", in relation to a person referred to in subsection (2) (a) to (d), means a person who
(a) is married to another person, or
(b) is living and cohabiting with another person in a marriage-like relationship, including a marriage-like relationship between persons of the same gender.
(2) Subject to subsection (3), the following persons, in their capacity as purchasers of energy products, are exempt from levies under section 68.01 of the Act:
(a) diplomatic agents of a diplomatic mission situated in Canada who are citizens of the country operating the diplomatic mission;
(b) senior officials of United Nations agencies situated in Canada who have been accorded diplomatic privileges by the Department of External Affairs of the government of Canada;
(c) career consular officers of a consular post situated in British Columbia, or of a consular post situated elsewhere in Canada but accredited in British Columbia, who are citizens of the country operating the consular post;
(d) administrative and support staff of consular posts situated in British Columbia who are citizens of the country operating the consular post;
(e) spouses of the persons referred to in paragraphs (a) to (d).
(3) The exemption under subsection (2) does not apply to Canadian citizens or landed immigrants.
(4) A person is exempt from further levies under section 68.01 of the Act in the 12 month period beginning September 1, 2007 and in each successive 12 month period beginning on September 1 in each year if
(a) the person has already paid at least $100 000 in that 12 month period,
(b) the person provides evidence satisfactory to the commissioner that the person has paid at least $100 000 in accordance with paragraph (a), and
(c) the person receives written confirmation from the commissioner that the person has paid at least $100 000 in accordance with paragraph (a).
[en. B.C. Reg. 203/2007, Sch. s. 2; am. B.C. Reg. 9/2008.]
Division 18 - Application for Refund on Purchases of Medical Equipment by Eligible Charities
Definitions
18.1 (1) In this Division,
"community care facility" has the same meaning as in the Community Care and Assisted Living Act;
"PHSA" means the Provincial Health Services Authority, a society incorporated under the Society Act.
(2) The PHSA is prescribed for the purposes of paragraph (b) of the definition of "charity funds" in section 88.2 (1) of the Act.
(3) The following facilities are prescribed for the purposes of paragraph (b) of the definition of "health facility" in section 88.2 (1) of the Act:
(a) a provincial mental health facility designated under section 3 (1) of the Mental Health Act;
(b) a community care facility, other than a child day care facility, licensed under section 11 of the Community Care and Assisted Living Act.
[en. B.C. Reg. 356/2007, Sch.]
Applications
18.2 An application by an eligible charity under section 88.2 (2) of the Act must include all of the following for each purchase of medical equipment purchased with charity funds of the eligible charity:
(a) documentation showing
(i) the purchase price, the amount of tax paid on the purchase, and any other amounts paid on the purchase,
(ii) the date of purchase and the name of the vendor and the purchaser,
(iii) the name and address of the health facility in which the medical equipment will be used, and
(iv) the amount of charity funds provided by the eligible charity that were used to make the purchase;
(b) if the medical equipment was purchased by a health authority or the PHSA, documentation establishing that the eligible charity provided charity funds directly to the health authority or the PHSA, as applicable, for the purchase;
(c) if the medical equipment was purchased by the health facility referred to in paragraph (a) (iii), documentation establishing that the eligible charity provided charity funds directly to the health facility for the purchase;
(d) a statement signed by an officer of the eligible charity
(i) certifying that charity funds of the eligible charity were used to purchase the medical equipment,
(ii) if the medical equipment was purchased by a health authority or the PHSA, authorizing the commissioner to discuss the application with the health authority or PHSA, as applicable, and
(iii) if the medical equipment was purchased by anyone other than a health authority or the PHSA, authorizing the commissioner to discuss the application with the health facility referred to in paragraph (a) (iii);
(e) if the medical equipment was purchased by a health authority or the PHSA, a statement signed by an administrator of the health authority or the PHSA, as applicable, certifying
(i) that the medical equipment is for use in the health facility referred to in paragraph (a) (iii) to treat patients or diagnose their ailments, and
(ii) if the health facility is a community care facility, that the facility is licensed under section 11 of the Community Care and Assisted Living Act;
(f) if the medical equipment was purchased by anyone other than a health authority or the PHSA, a statement signed by an administrator of the health facility referred to in paragraph (a) (iii) certifying
(i) that the medical equipment is for use in the health facility to treat patients or diagnose their ailments, and
(ii) if the health facility is a community care facility, that the facility is licensed under section 11 of the Community Care and Assisted Living Act.
[en. B.C. Reg. 356/2007, Sch.]
Refund amount
18.3 The portion of the tax to be refunded under section 88.2 (4) of the Act must be determined in accordance with the following formula:
| R = T x |  | CF AP |  |
where
| R | = | the amount of the refund; |
| T | = | the tax paid on the purchase of the medical equipment under section 5 (1), 11 or 112.3 of the Act; |
| CF | = | the total amount of charity funds of the applicant paid towards the purchase of the medical equipment; |
| AP | = | the total amount paid for the purchase of the medical equipment. |
[en. B.C. Reg. 356/2007, Sch.]
Division 19 - Tax Payment Agreements
Conditions on agreement
19.2 An agreement referred to in section 93.1 of the Act is subject to the following conditions:
(a) the commissioner may cancel the agreement if the commissioner is satisfied that the person with whom the agreement was made has failed to comply with a term or condition of the agreement, the Act or the regulations;
(b) the agreement must specify the types of tangible personal property to which the agreement applies;
(c) the agreement must provide for the issuance to the person of a special registration number for the purposes of section 19.3.
[en. B.C. Reg. 148/2008, s. 10.]
When tax is payable
19.4 For the purposes of section 93.1 (7) of the Act, a person who makes a purchase or enters into a lease that is subject to an agreement referred to in section 93.1 of the Act must pay the tax imposed by the Act in relation to the purchase or lease on the earliest of
(a) 23 days after the last day of the month in which the tangible personal property is used,
(b) if the tangible personal property is not used before or in the month that is 12 months from the date of purchase or lease, 23 days after the last day of that month, and
(c) if the tangible personal property is not used on or before December 31, 2010, January 24, 2011.
[en. B.C. Reg. 220/2010, Sch. 2, s. 14.]
Refund of tax paid
19.5 (1) For the purposes of section 90.5 (b) of the Act, the commissioner must provide to a person a refund of tax in respect of a purchase or lease if the commissioner is satisfied that
(a) the person paid the tax at the time referred to in section 19.4 (c) of this regulation, and
(b) on or after January 1, 2011 and before July 1, 2014, the person uses the tangible personal property
(i) for a use that would have been exempt from tax if that use had occurred on or before December 31, 2010, and
(ii) for no use other than storage before the use referred to in subparagraph (i).
(2) A refund must not be made under subsection (1) on a claim that is made after June 30, 2014.
[en. B.C. Reg. 220/2010, Sch. 2, s. 14.]
Division 21 - Social Service Tax Act Transition
Definitions
21.1 (1) In this Division:
"application sections" has the same meaning as in section 4.8 of the Act;
"consideration" has the same meaning as in section 4.8 of the Act.
(2) Sections 4.81 and 4.83 of the Social Service Tax Act apply for the purposes of sections 21.3 and 21.4 of this regulation as if
(a) sections 21.3 and 21.4 of this regulation were application sections, and
(b) section 4.81 of the Social Service Tax Act included a reference to "a related item," after each reference to "tangible personal property,".
[en. B.C. Reg. 116/2010.]
Delivery
21.1.1 For the purposes of sections 5.1, 10.1, 15.1 and 68.22 of the Act, tangible personal property is deemed, unless there is evidence to the contrary, to have been delivered to a purchaser, a contractor or a person if the vendor delivers the tangible personal property to a carrier in accordance with the terms of the purchase.
[en. B.C. Reg. 220/2010, Sch. 1, s. 1.]
Continuous supplies
21.2 (1) Subsection (2) applies if a vendor
(a) provides tangible personal property or a telecommunication service to a purchaser on a continuous basis by means of a wire, pipeline or similar conduit or satellite or other telecommunication facility,
(b) invoices the purchaser on a regular or periodic basis, and
(c) in relation to an invoice period that begins before July 1, 2010 and ends on or after July 1, 2010, cannot reasonably determine what portion of the tangible personal property is delivered to the purchaser or what portion of the telecommunication service is provided to the purchaser before July 1, 2010.
(2) In the circumstances in which this subsection applies, for the purposes of determining the tax payable under the Act, the portion of the tangible personal property delivered, or the telecommunication service provided, before July 1, 2010 is deemed to be the portion equal to that proportion of the tangible personal property delivered, or the telecommunication service provided, that the number of days before July 1, 2010 that are in the invoice period bears to the total number of days in the invoice period.
[en. B.C. Reg. 116/2010.]
Combined supplies
21.3 (1) In this section:
"related item" means a service or intangible personal property that is not a taxable item;
"taxable item" has the same meaning as in section 143 of the Act.
(2) For the purpose of applying the Act in relation to taxable items, if
(a) a taxable item that is tangible personal property and one or more other taxable items or related items are provided together for a single price,
(b) in respect of a taxable item that is tangible personal property,
(i) ownership of the tangible personal property is transferred or the tangible personal property is delivered to the purchaser before July 1, 2010, or
(ii) the rental period under the lease begins before July 1, 2010, and
(c) either
(i) no tax would be payable under the Act by reason of the application sections in respect of some or all of the consideration for the taxable items referred to in paragraph (a) if any of the taxable items were provided separately, or
(ii) in relation to a related item referred to in paragraph (a),
(A) any consideration attributable to the related item would not be included for the purposes of the Act in the purchase price or lease price of a taxable item if the related item was provided separately,
(B) the related item is provided or partially provided on or after July 1, 2010, and
(C) a portion of the consideration attributable to the related item,
(I) if the related item is a service, is not paid before May 1, 2010 and becomes due on or after May 1, 2010, or
(II) if the related item is intangible personal property, is not paid before July 1, 2010 and becomes due on or after July 1, 2010,
each taxable item or related item is deemed to have been supplied separately from the other taxable items and related items.
(3) If a taxable item is deemed under subsection (2) to have been supplied separately, for the purposes of determining the tax payable under the Act, the purchase price or lease price of the taxable item is to be determined as if, before the applicable application section is applied,
(a) the purchase price or lease price of the taxable item was an amount equal to that portion of the single price that is attributable to the taxable item, and
(b) the consideration for the taxable item was the portion of the consideration attributable to the taxable item.
(4) This section does not apply to the following:
(a) taxable items and related items that are provided together if,
(i) in relation to the taxable items that are tangible personal property, ownership of all of the tangible personal property is transferred or all of the tangible personal property is delivered to the purchaser before July 1, 2010,
(ii) in relation to the taxable items that are leased property, the rental period under each lease begins before July 1, 2010 and ends before July 31, 2010,
(iii) in relation to the taxable items or related items that are services, all of the services are substantially provided before July 1, 2010, and
(ivin relation to the related items not referred to in subparagraph (iii), all of the related items are provided before July 1, 2010;)
(b) taxable items for which the consideration is paid under a budget payment arrangement with a reconciliation of the payments to take place at or after the end of the period to which the arrangement applies;
(c) tangible personal property and services described in paragraph (d) of the definition of "sale" in section 1 (1) of the Act;
(d) taxable items and related items that are provided together if the consideration for the taxable items and related items becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due.
[en. B.C. Reg. 116/2010.]
Software
21.4 (1) In this section, "designated licence" means
(a) the right to use software that is delivered by electronic means and for which the purchase price for that right to use software varies with the amount of use of the software, or
(b) the right to use software that is purchased separately from the software if the software is delivered other than by electronic means.
(2) Despite section 5.1 (3) of the Act, tax is payable by a purchaser under section 5 of the Act in respect of a purchase of tangible personal property that is
(a) software delivered by electronic means, or
(b) a designated licence that is
(i) described in paragraph (b) of the definition of "designated licence", and
(ii) a perpetual right to use software,
if a portion of the consideration for the software becomes due before July 1, 2010 or is paid before July 1, 2010 without having become due.
(3) Despite section 5.1 (5) of the Act, tax is not payable by a purchaser under section 5 of the Act in respect of a purchase of tangible personal property that is software delivered by electronic means if
(a) all of the consideration for the software becomes due on or after July 1, 2010, and
(b) none of the consideration for the software is paid before July 1, 2010.
(4) If tax is payable under section 5 of the Act by reason of subsection (2) of this section, for the purpose of calculating the tax payable under section 5 of the Act, the purchase price of the tangible personal property that is software delivered by electronic means is deemed to be the amount equal to the purchase price of the software less that portion of the consideration for the software that is not paid before July 1, 2010 and becomes due on or after July 1, 2010.
(5) Despite section 5.1 (3) of the Act and subsection (2) of this section, tax is payable by a purchaser under section 5 of the Act in respect of a purchase of tangible personal property that is a designated licence with a right to use software for a fixed term
(a) if, before May 1, 2010, the consideration for the designated licence becomes due or is paid without having become due,
(b) if the period of use under the designated licence begins before July 1, 2010 and ends before July 31, 2010,
(c) if the period of use under the designated licence begins before July 1, 2010 and ends on or after July 31, 2010, or
(d) if
(i) before May 1, 2010, only a portion of the consideration for the designated licence becomes due or is paid without having become due, and
(ii) the period of use under the designated licence begins on or after July 1, 2010.
(6) Despite section 5.1 (5) of the Act and subsection (2) of this section, tax is not payable by a purchaser under section 5 of the Act in respect of a purchase of tangible personal property that is a designated licence with a right to use software for a fixed term if
(a) all of the consideration for the designated licence becomes due on or after May 1, 2010,
(b) none of the consideration for the designated licence is paid before May 1, 2010, and
(c) the period of use under the designated licence begins on or after July 1, 2010.
(7) If tax is payable under section 5 of the Act by reason only of subsection (5) (c) of this section, for the purpose of calculating the tax payable under section 5 of the Act, the purchase price of the tangible personal property that is a designated licence with a right to use software for a fixed term is deemed to be the amount equal to the purchase price of the designated licence less that portion of the consideration for the designated licence that
(a) is not paid before May 1, 2010,
(b) becomes due on or after May 1, 2010, and
(c) is attributable to the portion of the period of use that is on or after July 1, 2010.
(8) If tax is payable under section 5 of the Act by reason of subsection (5) (d) of this section, for the purpose of calculating the tax payable under section 5 of the Act, the purchase price of the tangible personal property that is a designated licence with a right to use software for a fixed term is deemed to be the amount equal to the purchase price of the designated licence less that portion of the consideration for the designated licence that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.
[en. B.C. Reg. 116/2010; am. B.C. Reg. 220/2010, Sch. 1, s. 2.]
Prescribed time — tax on tangible personal property to be used to improve real property
21.5 For the purposes of section 68.21 (3) of the Act, the prescribed time for the payment of the tax under that section is January 24, 2011.
[en. B.C. Reg. 220/2010, Sch. 2, s. 16.]
Assessments and penalties — prescribed refunds
21.6 For the purposes of section 115 (2.1) and (5.01) of the Act, the refunds under the following sections are prescribed:
(a) section 22.2 [commercial activities refund];
(b) section 22.3 [transitional refund];
(c) section 22.4 [software];
(d) section 22.6 [refund in relation to inventory];
(e) section 22.7 [progress payments];
(f) section 23.3 [budget payment arrangements].
[en. B.C. Reg. 220/2010, Sch. 2, s. 16.]
When tax is payable
21.7 (1) For the purposes of section 140 of the Act, the time at which tax is payable under the Act is as follows:
(a) in respect of more tax required to be paid when tax calculated under section 13 (2) to (6) of the Act is adjusted under section 13 (8) of the Act, within 23 days after the date the tax is adjusted;
(b) in respect of tax imposed under Division 6 of Part 2 of the Act on legal services provided under a contingent fee agreement, as defined in section 64 of the Legal Profession Act, that is entered into before July 1, 2010 if the event triggering payment for the legal services under the agreement has not occurred on or before December 31, 2010,
(i) subject to subparagraph (ii), by the date on which the purchase price of the legal services is paid or payable, whichever is earlier, or
(ii) if the person providing the legal services is not obliged to and does not collect the tax under that Division, by the 23rd day of the month following the month in which the tax is otherwise required to be paid by subparagraph (i);
(c) in respect of tax imposed under Division 7 of Part 2 of the Act on the provision to a purchaser of a telecommunication service in a service area outside British Columbia if the telecommunication service in that service area is provided at least in part by another telecommunication service provider under an agreement between the vendor and that service provider, the earliest of the following:
(i) the time that the purchase price of the telecommunication service is paid;
(ii) the time that the purchase price of the telecommunication service is payable;
(iii) June 30, 2011;
(d) subject to paragraphs (a) to (c), in respect of tax imposed under the Act on the purchase of tangible personal property, a taxable service, legal services or a telecommunication service, if due to extraordinary circumstances the vendor is not able to determine the purchase price of the tangible personal property, taxable service, legal services or telecommunication service before January 1, 2011 and the vendor gives notice to the commissioner of the extraordinary circumstances before January 1, 2011, the earlier of the following:
(i) the date the vendor determines the purchase price of the tangible personal property, taxable service, legal services or telecommunication service;
(ii) the date on which the vendor ought to have reasonably been able to determine the purchase price of the tangible personal property, taxable service, legal services or telecommunication service;
(e) in respect of tax imposed under the Act on leased property, if due to extraordinary circumstances the lessor is not able to determine the lease price of the leased property before January 1, 2011 and the lessor gives notice to the commissioner of the extraordinary circumstances before January 1, 2011, the earlier of the following:
(i) the date the lessor determines the lease price of the leased property;
(ii) the date on which the lessor ought to have reasonably been able to determine the lease price of the leased property;
(f) despite paragraph (c), in respect of tax imposed under the Act on tangible personal property, leased property, a taxable service, legal services or a telecommunication service to which section 23.3 [budget payment arrangements] applies, the date that the vendor or lessor issues the invoice for the reconciliation of the payments under the budget payment arrangement.
(2) For the purposes of section 140 of the Act, an amount to be remitted under section 25 (3) of the Act must be remitted on or before the date that is 23 days after the last day of the month in which the lessor receives the amount referred to in that section.
(3) Tax imposed under the Act for which the time at which the tax is payable is provided for under subsection (1) must be collected at the time at which the tax is payable.
(4) If a vendor is providing legal services under a contingent fee agreement referred to in subsection (1) (b), the vendor must report to the commissioner, on or before February 1, 2011, the number of contingent fee agreements under which the vendor is providing legal services and for which the event triggering payment for the legal services under the agreement has not occurred on or before December 31, 2010.
[en. B.C. Reg. 220/2010, Sch. 2, s. 16.]
Definitions and interpretation
22.1 (1) In this Division:
"commercial activity" has the same meaning as in Part IX [Goods and Services Tax] of the federal Act;
"consumer" has the same meaning as in Part IX of the federal Act;
"designated software" means a fixed term licence, perpetual licence or specified licence, as those terms are defined in section 22.4;
"federal Act" means the Excise Tax Act (Canada);
"federal regulation" means the New Harmonized Value-added Tax System Regulations (Canada);
"publication" means a magazine, newspaper or periodical other than a magazine, newspaper or periodical exempt from tax under section 5 of the Act.
(2) The definitions of "magazines", "newspapers" and "periodicals" in section 1 (1) of the Act do not apply to the first reference to a form of those words in the definition of "publication" in subsection (1) of this section.
(3) This Division provides for refunds for the purposes of section 90.5 (a) of the Act.
[en. B.C. Reg. 220/2010, Sch. 2, s. 17.]
Commercial activities refund
22.2 (1) On application made on or before December 31, 2010, the commissioner may pay to an applicant a refund of the tax paid under Division 1 [Tax in relation to Purchase and Use] of Part 2 of the Act by the applicant in respect of tangible personal property, other than tangible personal property that is designated software or a subscription for a publication, if the commissioner is satisfied that
(a) the applicant is registered under Subdivision d of Division V of Part IX of the federal Act,
(b) the tangible personal property was purchased after October 14, 2009 and before May 1, 2010,
(c) ownership of the tangible personal property is transferred and the tangible personal property is delivered to the applicant on or after July 1, 2010, and
(d) the tangible personal property was purchased for use exclusively in the course of a commercial activity of the applicant.
(2) Despite subsection (1), the refund payable under subsection (1) to an applicant in respect of tangible personal property described in subsection (10) is equal to the tax paid on that portion of the purchase price of the tangible personal property that is attributable to the portion of the tangible personal property that is provided on or after July 1, 2010.
(3) On application made on or before December 31, 2010, the commissioner may pay to an applicant a refund of the tax paid under Division 1 of Part 2 of the Act by the applicant in respect of tangible personal property that is a subscription for a publication, if the commissioner is satisfied that
(a) the applicant is registered under Subdivision d of Division V of Part IX of the federal Act,
(b) the subscription was purchased after October 14, 2009 and before July 1, 2010,
(c) the first publication under the subscription is delivered to the applicant on or after July 1, 2010, and
(d) the subscription was purchased for use exclusively in the course of a commercial activity of the applicant.
(4) On application made on or before December 31, 2010, the commissioner may pay to an applicant a refund in accordance with subsection (5) or (6) in respect of leased property, if the commissioner is satisfied that
(a) the applicant is registered under Subdivision d of Division V of Part IX of the federal Act,
(b) the rental period under the lease
(i) began after October 14, 2009 and before July 1, 2010 and ends on or after July 31, 2010, or
(ii) begins on or after July 1, 2010,
(c) all or a portion of the lease price of the leased property for the rental period described in paragraph (b)
(i) became due, or
(ii) was paid without having become due
after October 14, 2009 and before May 1, 2010, and
(d) the leased property was leased for use exclusively in the course of a commercial activity of the applicant.
(5) The refund payable under subsection (4) to an applicant in respect of leased property is equal to the amount of tax paid under Division 2 [Tax in relation to Leases] of Part 2 of the Act by the applicant on the amount of the lease price that is described in subsection (4) (c).
(6) Despite subsection (5), the refund payable under subsection (4) to an applicant in respect of leased property referred to in subsection (4) (b) (i) is equal to the tax paid on the amount of the lease price of the leased property that
(a) is described in subsection (4) (c), and
(b) is attributable to the portion of the rental period that is on or after July 1, 2010.
(7) Despite subsection (4), a refund is not payable under that subsection if any portion of the lease price of the leased property for the rental period became due or was paid without having become due before October 15, 2009.
(8) On application made on or before December 31, 2010, the commissioner may pay to an applicant a refund of the tax paid under the Act by the applicant on the purchase of a taxable service, legal services or a telecommunication service, if the commissioner is satisfied that
(a) the applicant is registered under Subdivision d of Division V of Part IX of the federal Act,
(b) the service was purchased after October 14, 2009 and before May 1, 2010,
(c) the service
(i) is provided on or after July 1, 2010, or
(ii) is partially provided on or after July 1, 2010 but is not substantially provided before July 1, 2010, and
(d) the service was purchased for use exclusively in the course of a commercial activity of the applicant.
(9) Despite subsection (8), the refund payable under subsection (8) to an applicant in respect of a taxable service, legal services or a telecommunication service referred to in subsection (8) (c) (ii) is equal to the tax paid on that portion of the purchase price of the taxable service, legal services or a telecommunication service that is attributable to the portion of the service that is provided on or after July 1, 2010.
(10) Subsection (11) applies if
(a) a purchaser purchases tangible personal property or a telecommunication service provided on a continuous basis by means of a wire, pipeline or similar conduit or satellite or other telecommunication facility,
(b) a purchaser is invoiced on a regular or periodic basis, and
(c) in relation to an invoice period that began before July 1, 2010 and ends on or after July 1, 2010, it cannot reasonably be determined what portion of the tangible personal property was delivered to the purchaser or what portion of the telecommunication service was provided to the purchaser before July 1, 2010.
(11) In the circumstances in which this subsection applies, for the purposes of determining the amount of the refund referred to in subsection (2) or (9), the portion of the tangible personal property delivered, or the telecommunication service provided, on or after July 1, 2010 is deemed to be the portion equal to that proportion of the tangible personal property delivered, or the telecommunication service provided, that the number of days on or after July 1, 2010 that are in the invoice period bears to the total number of days in the invoice period.
(12) A person who receives a refund under this section in respect of tangible personal property, leased property, a taxable service, legal services or a telecommunication service and subsequently receives a refund under section 23.1, 23.2 or 23.3 in respect of that tangible personal property, leased property, taxable service, legal services or telecommunication service must pay to the government, by the 23rd day of the month following the month in which the person received that subsequent refund, the amount of that subsequent refund.
[en. B.C. Reg. 220/2010, Sch. 2, s. 17.]
Transitional refund
22.3 (1) On application made on or before December 31, 2010, the commissioner may pay to an applicant a refund of the tax paid under Division 1 [Tax in relation to Purchase and Use] of Part 2 of the Act by the applicant in respect of tangible personal property, other than tangible personal property that is designated software or a subscription for a publication, if the commissioner is satisfied that
(a) the tangible personal property was purchased after October 14, 2009 and before May 1, 2010,
(b) ownership of the tangible personal property is transferred and the tangible personal property is delivered to the applicant on or after July 1, 2010,
(c) the applicant is not a consumer, and
(d) the applicant must pay tax in respect of the tangible personal property under section 165 (2) or 218.1 (1) of the federal Act by reason of section 41 of the federal regulation.
(2) Despite subsection (1), the refund payable under subsection (1) to an applicant in respect of tangible personal property described in subsection (10) is equal to the tax paid on that portion of the purchase price of the tangible personal property that is attributable to the portion of the tangible personal property that is delivered on or after July 1, 2010.
(3) On application made on or before December 31, 2010, the commissioner may pay to an applicant a refund of the tax paid under Division 1 of Part 2 of the Act by the applicant in respect of tangible personal property that is a subscription for a publication, if the commissioner is satisfied that
(a) the subscription was purchased after October 14, 2009 and before May 1, 2010,
(b) the first publication under the subscription is delivered to the applicant on or after July 1, 2010,
(c) the applicant is not a consumer, and
(d) the applicant must pay tax in respect of the subscription under section 165 (2) or 218.1 (1) of the federal Act by reason of section 41 of the federal regulation.
(4) On application made on or before December 31, 2010, the commissioner may pay to an applicant a refund in accordance with subsection (5) or (6) in respect of leased property, if the commissioner is satisfied that
(a) the rental period under the lease
(i) began after October 14, 2009 and before July 1, 2010 and ends on or after July 31, 2010, or
(ii) begins on or after July 1, 2010,
(b) all or a portion of the lease price of the leased property for the rental period described in paragraph (a)
(i) became due, or
(ii) was paid without having become due
after October 14, 2009 and before May 1, 2010,
(c) the applicant is not a consumer, and
(d) the applicant must pay tax in respect of the leased property under section 165 (2), 218.1 (1) or 220.08 (1) of the federal Act by reason of section 42 of the federal regulation.
(5) The refund payable under subsection (4) to an applicant in respect of leased property is equal to the amount of tax paid under Division 2 [Tax in relation to Leases] of Part 2 of the Act by the applicant on the amount of the lease price that is described in subsection (4) (b).
(6) Despite subsection (5), the refund payable under subsection (4) to an applicant in respect of leased property referred to in subsection (4) (a) (i) is equal to the tax paid on the amount of the lease price of the leased property that
(a) is described in subsection (4) (b), and
(b) is attributable to the portion of the rental period that is on or after July 1, 2010.
(7) Despite subsection (4), a refund is not payable under that subsection if any portion of the lease price of the leased property for the rental period became due or was paid without having become due before October 15, 2009.
(8) On application made on or before December 31, 2010, the commissioner may pay to an applicant a refund of the tax paid under the Act on the purchase of a taxable service, legal services or a telecommunication service by the applicant if the commissioner is satisfied that
(a) the service was purchased after October 14, 2009 and before May 1, 2010,
(b) the service
(i) is provided on or after July 1, 2010, or
(ii) is partially provided on or after July 1, 2010 but is not substantially provided before July 1, 2010,
(c) the applicant is not a consumer, and
(d) the applicant must pay tax on the purchase of the service under section 165 (2), 218.1 (1) or 220.08 (1) of the federal Act by reason of section 43 of the federal regulation.
(9) Despite subsection (8), the refund payable under subsection (8) to an applicant in respect of a taxable service, legal services or a telecommunication service referred to in subsection (8) (b) (ii) is equal to the tax paid on that portion of the purchase price of the taxable service, legal services or a telecommunication service that is attributable to the portion of the service that is provided on or after July 1, 2010.
(10) Subsection (11) applies if
(a) a purchaser purchases tangible personal property or a telecommunication service provided on a continuous basis by means of a wire, pipeline or similar conduit or satellite or other telecommunication facility,
(b) a purchaser is invoiced on a regular or periodic basis, and
(c) in relation to an invoice period that began before July 1, 2010 and ends on or after July 1, 2010, the vendor cannot reasonably determine what portion of the tangible personal property was delivered to the purchaser or what portion of the telecommunication service was provided to the purchaser before July 1, 2010.
(11) In the circumstances in which this subsection applies, for the purposes of determining the amount of the refund referred to in subsection (2) or (9), the portion of the tangible personal property delivered, or the telecommunication service provided, on or after July 1, 2010 is deemed to be the portion equal to that proportion of the tangible personal property delivered, or the telecommunication service provided, that the number of days on or after July 1, 2010 that are in the invoice period bears to the total number of days in the invoice period.
(12) A person who receives a refund under this section in respect of tangible personal property, leased property, a taxable service, legal services or a telecommunication service and subsequently receives a refund under section 23.1, 23.2 or 23.3 in respect of that tangible personal property, leased property, taxable service, legal services or telecommunication service must pay to the government, by the 23rd day of the month following the month in which the person received that subsequent refund, the amount of that subsequent refund.
[en. B.C. Reg. 220/2010, Sch. 2, s. 17.]
Software
22.4 (1) In this section:
"fixed term licence" means
(a) software that is delivered by electronic means if the right to use the software is for a fixed term, or
(b) a software licence with a right to use, for a fixed term, a software program if
(i) the software licence is purchased separately from the software program, and
(ii) the software program is delivered other than by electronic means,
but does not include a specified licence;
"perpetual licence" means
(a) software that is delivered by electronic means if there is a perpetual right to use the software, or
(b) a software licence with a perpetual right to use a software program if
(i) the software licence is purchased separately from the software program, and
(ii) the software program is delivered other than by electronic means;
"software licence" means software that is a right to use a packaged or prewritten software program;
"software program" means software that is a packaged or prewritten software program;
"specified licence" means software that is delivered by electronic means if
(a) the right to use the software is for a fixed term, and
(b) the purchase price of the software does not vary with the amount of use of the software.
(2) On application made on or before December 31, 2010, the commissioner may pay to an applicant a refund of the tax paid under Division 1 [Tax in relation to Purchase and Use] of Part 2 of the Act by the applicant in respect of tangible personal property that is designated software, if the commissioner is satisfied that
(a) the applicant is registered under Subdivision d of Division V of Part IX of the federal Act,
(b) the designated software was purchased for use exclusively in the course of a commercial activity of the applicant,
(c) in relation to a fixed term licence,
(i) all or a portion of the purchase price of the licence for the period of use described in subparagraph (ii)
(A) became due, or
(B) was paid without having become due
after October 14, 2009 and before May 1, 2010, and
(ii) the period of use under the licence
(A) begins on or after July 1, 2010, or
(B) began before July 1, 2010 and ends on or after July 31, 2010,
(d) in relation to a perpetual licence,
(i) the licence was purchased after October 14, 2009 and before July 1, 2010, and
(ii) ownership of the licence is transferred and the licence is delivered to the applicant on or after July 1, 2010, and
(e) in relation to a specified licence, the licence was purchased after October 14, 2009 and before July 1, 2010 and
(i) ownership of the licence is transferred and the licence is delivered to the applicant on or after July 1, 2010, or
(ii) ownership of the licence was transferred or the licence was delivered to the applicant before July 1, 2010.
(3) Despite subsection (2), the refund payable under subsection (2) to an applicant in respect of tangible personal property that is a fixed term licence is equal to the amount of tax paid under Division 1 of Part 2 of the Act by the applicant on the amount of the purchase price described in subsection (2) (c) (i).
(4) Despite subsections (2) and (3), the refund payable under subsection (2) to an applicant in respect of tangible personal property that is a fixed term licence referred to in subsection (2) (c) (ii) (B) is equal to the tax paid under Division 1 of Part 2 of the Act by the applicant on the amount of the purchase price that
(a) is described in subsection (2) (c) (i), and
(b) is attributable to the period of use that occurs on or after July 1, 2010.
(5) Despite subsection (2), the refund payable under subsection (2) to an applicant in respect of tangible personal property that is a specified licence referred to in subsection (2) (e) (ii) is equal to the tax paid on the portion of the purchase price that is attributable to the period of use that occurs on or after July 1, 2010.
(6) On application made on or before December 31, 2010, the commissioner may pay to an applicant a refund in accordance with subsection (7) or (8) in respect of a purchase by the applicant of tangible personal property that is a fixed term licence, if the commissioner is satisfied that
(a) all or a portion of the purchase price of the fixed term licence for the period of use described in paragraph (b)
(i) became due, or
(ii) was paid without having become due
after October 14, 2009 and before May 1, 2010,
(b) the period of use under the fixed term licence
(i) begins on or after July 1, 2010, or
(ii) began before July 1, 2010 and ends on or after July 31, 2010,
(c) the applicant is not a consumer, and
(d) the applicant must pay tax in respect of the fixed term licence under section 165 (2) or 218.1 (1) of the federal Act by reason of section 42 of the federal regulation.
(7) The refund payable under subsection (6) to an applicant in respect of a purchase of tangible personal property that is a fixed term licence is equal to the amount of tax paid under Division 1 of Part 2 of the Act by the applicant on the amount of the purchase price described in subsection (6) (a).
(8) Despite subsection (7), the refund payable under subsection (6) to an applicant in respect of a purchase of tangible personal property that is a fixed term licence referred to in subsection (6) (b) (ii) is equal to the tax paid under Division 1 of Part 2 of the Act by the applicant on the amount of the purchase price that
(a) is described in subsection (6) (a), and
(b) is attributable to the period of use that occurs on or after July 1, 2010.
(9) Despite subsections (2) and (6), a refund is not payable under those subsections in respect of a fixed term licence if any portion of the purchase price of the licence for the period of use became due or was paid without having become due before October 15, 2009.
(10) A person who receives a refund under this section in respect of tangible personal property and subsequently receives a refund under section 23.2 or 23.3 in respect of that tangible personal property must pay to the government, by the 23rd day of the month following the month in which the person received that subsequent refund, the amount of that subsequent refund.
[en. B.C. Reg. 220/2010, Sch. 2, s. 17.]
Refund in relation to liquor sold under special occasion licence
22.5 (1) On application made on or before December 31, 2010, the commissioner may pay to an applicant a refund of the amount paid under section 7 of the Act by the applicant in respect of liquor acquired for sale under a special occasion licence, if the commissioner is satisfied that
(a) the applicant is registered under Subdivision d of Division V of Part IX of the federal Act,
(b) either
(i) the applicant was issued the special occasion licence before May 1, 2010, or
(ii) the special occasion licence was in effect for a period that began before July 1, 2010 and ended on or after July 1, 2010,
(c) the applicant sold some or all of the liquor on or after July 1, 2010, and
(d) the sale of the liquor was subject to tax imposed under section 165 (2) of the federal Act.
(2) Despite subsection (1), if some of the liquor is sold before July 1, 2010, the refund payable under subsection (1) to an applicant in respect of the liquor is equal to the amount paid under section 7 of the Act that is attributable to the portion of the liquor that is sold on or after July 1, 2010.
[en. B.C. Reg. 220/2010, Sch. 2, s. 17.]
Refund in relation to inventory
22.6 (1) In this section,
"capital property" has the same meaning as in the Income Tax Act (Canada);
"construction material", in relation to construction material held by a contractor, does not include property that is capital property of the contractor;
"residential complex" has the same meaning as in Part IX of the federal Act;
"substantial renovation" has the same meaning as in Part IX of the federal Act.
(2) Subject to subsection (3), on application made on or before March 1, 2011, the commissioner may pay to an applicant a refund of the tax paid under the Act in respect of tangible personal property that is construction material if the commissioner is satisfied that
(a) the applicant is a contractor who paid tax under the Act in respect of the construction material,
(b) the construction material is held in the contractor's inventory at the end of the day on June 30, 2010,
(c) on or after July 1, 2010 and on or before December 31, 2010, the contractor incorporates the construction material into a residential complex in the course of fulfilling a contract to repair or improve the residential complex but not in the course of fulfilling a contract
(i) relating to a substantial renovation of a residential complex, or
(ii) relating to the construction of a new residential complex, and
(d) tax is payable under section 165 (2) of the federal Act in respect of the supply under the contract to repair or improve the residential complex.
(3) If the residential complex is part of a multi-use building, the refund is limited to be in respect of that portion of the construction material that the commissioner considers to have been reasonably used to repair or improve the residential complex.
(4) Despite subsection (3), the commissioner may not pay a refund under subsection (3) in respect of tangible personal property to the extent that the applicant has received or is eligible to receive, directly or indirectly, an amount from the government, the government of Canada, a municipality or a regional district in respect of the tax paid under the Act in respect of that tangible personal property.
[en. B.C. Reg. 220/2010, Sch. 2, s. 17.]
Progress payments
22.7 (1) In this section, "consideration" has the same meaning as in section 4.8 of the Act.
(2) Sections 4.81 and 4.83 of the Act apply for the purposes of this section as if this section were included within the meaning of "application sections" in section 4.8 of the Act.
(3) On application made on or before December 31, 2010, the commissioner may pay to an applicant a refund in accordance with subsection (4) of tax paid under Division 1 of Part 2 of the Act by the applicant in respect of tangible personal property, if the commissioner is satisfied that
(a) the tangible personal property was provided under an agreement for the construction, renovation, alteration or repair of a ship or other vessel,
(b) after October 14, 2009 and before July 1, 2010, all or a portion of the consideration attributable to the tangible personal property
(i) became due, or
(ii) was paid without having become due
as a progress payment that was required under the agreement, or as a holdback from a progress payment under the agreement,
(c) on or after July 1, 2010, ownership of the tangible personal property is transferred and the tangible personal property is delivered to the applicant, and
(d) the applicant must pay tax in respect of the supply of the tangible personal property under section 165 (2) of the federal Act by reason of section 51 of the federal regulation.
(4) The refund payable under subsection (3) to an applicant in respect of tangible personal property is the amount of tax paid under Division 1 of Part 2 of the Act on that portion of the purchase price of the tangible personal property equal to the amount of the consideration that
(a) is described in subsection (3) (b), and
(b) is attributable to the portion of the tangible personal property that is delivered on or after July 1, 2010.
(5) On application made on or before December 31, 2010, the commissioner may pay to an applicant a refund in accordance with subsection (6) of tax paid under Division 2 of Part 2 of the Act by the applicant in respect of leased property if the commissioner is satisfied that
(a) the leased property was provided under an agreement for the construction, renovation, alteration or repair of a ship or other vessel,
(b) after October 14, 2009 and before July 1, 2010, all or a portion of the consideration attributable to the leased property
(i) became due, or
(ii) was paid without having become due
as a progress payment that was required under the agreement, or as a holdback from a progress payment under the agreement,
(c) the rental period under the lease began before July 1, 2010 and ends on or after July 1, 2010, and
(d) the applicant must pay tax in respect of the leased property under section 165 (2) of the federal Act by reason of section 51 of the federal regulation.
(6) The refund payable under subsection (5) to an applicant in respect of leased property is the amount of tax paid under Division 2 of Part 2 of the Act by the applicant on that portion of the lease price equal to the amount of the consideration that
(a) is described in subsection (5) (b), and
(b) is attributable to the portion of the rental period that occurs on or after July 1, 2010.
(7) On application made on or before December 31, 2010, the commissioner may pay to an applicant a refund in accordance with subsection (8) of tax paid under section 36, 37 or 40 of the Act in respect of a service if the commissioner is satisfied that
(a) the service was provided under an agreement for the construction, renovation, alteration or repair of a ship or other vessel,
(b) after October 14, 2009 and before July 1, 2010, all or a portion of the consideration attributable to the service
(i) became due, or
(ii) was paid without having become due
as a progress payment that was required under the agreement, or as a holdback from a progress payment under the agreement,
(c) the service was provided or partially provided on or after July 1, 2010, and
(d) the applicant must pay tax in respect of the service under section 165 (2) of the federal Act by reason of section 51 of the federal regulation.
(8) The refund payable under subsection (7) to an applicant in respect of the service is the amount of tax paid under section 36, 37 or 40 of the Act by the applicant on that portion of the purchase price of the service equal to the amount of the consideration that
(a) is described in subsection (7) (b), and
(b) is attributable to the portion of the service that was provided on or after July 1, 2010.
[en. B.C. Reg. 220/2010, Sch. 2, s. 17.]
Division 23 - Refunds from Vendors
Cancellation of services
23.1 (1) If, after June 30, 2010 but before January 1, 2011,
(a) a purchaser or recipient of a taxable service, legal services or a telecommunication service cancels the service, and
(b) as a result of the cancellation, the vendor pays a refund to the purchaser or recipient,
the vendor must refund to the purchaser or recipient the amount of tax paid under this Act that is attributable to the amount of the refund.
(2) Despite subsection (1), a vendor must not refund an amount under this section after December 31, 2010.
[en. B.C. Reg. 220/2010, Sch. 2, s. 17.]
Price reductions
23.2 (1) If, after June 30, 2010 but before January 1, 2011,
(a) the purchase price of tangible personal property, a taxable service, legal services or a telecommunication service is reduced after tax imposed under the Act is payable, and
(b) the vendor pays a refund to the purchaser equal to the amount of the reduction in the purchase price referred to in paragraph (a),
the vendor must refund to the purchaser the amount of tax paid under the Act that is attributable to the amount of the refund.
(2) If, after June 30, 2010 but before January 1, 2011,
(a) the lease price of leased property is reduced after tax imposed under the Act is payable, and
(b) the lessor pays a refund to the lessee equal to the amount of the reduction in the lease price referred to in paragraph (a),
the lessor must refund to the lessee the amount of tax paid under the Act that is attributable to the amount of the refund.
(3) Despite subsections (1) and (2), a vendor must not refund an amount under this section after December 31, 2010.
[en. B.C. Reg. 220/2010, Sch. 2, s. 17.]
Budget payment arrangements
23.3 (1) In this section, "consideration" has the same meaning as in section 4.8 of the Act.
(2) Sections 4.81 and 4.83 of the Act apply for the purposes of this section as if this section were included within the meaning of "application sections" in section 4.8 of the Act.
(3) Subject to subsection (4), subsection (5) applies in relation to a purchase of tangible personal property if
(a) tangible personal property is delivered to the purchaser over a period that began before July 1, 2010 and ends on or after July 1, 2010, and
(b) the consideration for the tangible personal property is paid under a budget payment arrangement with a reconciliation of the payments to take place at or after the end of the period and before July 1, 2011.
(4) Subsection (5) does not apply in relation to a purchase of tangible personal property that is a subscription for a publication, as defined in section 5.1 (2) of the Act.
(5) In the circumstances in which this subsection applies, a vendor, at the time the vendor issues an invoice for the reconciliation of the payments under the budget payment arrangement, must refund to the purchaser the amount, if any, by which the amount paid as tax under the Act on the consideration for the tangible personal property exceeds the tax payable under the Act on the consideration for the tangible personal property that is attributable to the portion of the tangible personal property that was delivered to the purchaser before July 1, 2010 as determined by the reconciliation of the payments.
(6) Subsection (7) applies in relation to leased property if
(a) the term of the lease began before July 1, 2010 and ends on or after July1, 2010, and
(b) the consideration for the leased property is paid under a budget payment arrangement with a reconciliation of the payments to take place at or after the end of the term of the lease and before July 1, 2011.
(7) In the circumstances in which this subsection applies, a lessor, at the time the lessor issues an invoice for the reconciliation of the payments under the budget payment arrangement, must refund to the lessee the amount, if any, by which the amount paid as tax under the Act on the consideration for the leased property exceeds the tax payable under the Act on the consideration for the leased property that is attributable to the portion of the term of the lease that was before July 1, 2010 as determined by the reconciliation of the payments.
(8) Subsection (9) applies in relation to a purchase of a taxable service, legal services or a telecommunication service if
(a) the taxable service, legal services or telecommunication service is provided over a period that began before July 1, 2010 and ends on or after July 1, 2010, and
(b) the consideration for the taxable service, legal services or telecommunication service is paid under a budget payment arrangement with a reconciliation of the payments to take place at or after the end of the period and before July 1, 2011.
(9) In the circumstances in which this subsection applies, a vendor, at the time the vendor issues an invoice for the reconciliation of the payments under the budget payment arrangement, must refund to the purchaser the amount, if any, by which the amount paid as tax under the Act on the consideration for the taxable service, legal services or telecommunication service exceeds the tax payable under the Act on the consideration for the taxable service, legal services or telecommunication service that is attributable to the portion of the taxable service, legal services or telecommunication service that was provided to the purchaser before July 1, 2010 as determined by the reconciliation of the payments.
(10) Subsection (11) applies if a vendor
(a) provides tangible personal property or a telecommunication service to a purchaser on a continuous basis by means of a wire, pipeline or similar conduit or satellite or other telecommunication facility, and
(b) in relation to a period under the budget payment arrangement that began before July 1, 2010 and ends on or after July 1, 2010, cannot reasonably determine what portion of the tangible personal property was delivered to the purchaser or what portion of the telecommunication service was provided to the purchaser before July 1, 2010.
(11) In the circumstances in which this subsection applies, for the purposes of determining the amount of a refund under subsection (5) or (9), the portion of the tangible personal property delivered, or the telecommunication service provided, before July 1, 2010 is deemed to be the portion equal to that proportion of the tangible personal property delivered, or the telecommunication service provided, that the number of days before July 1, 2010 that are in the period referred to in subsection (10) (b) bears to the total number of days in that period.
[en. B.C. Reg. 220/2010, Sch. 2, s. 17.]
| 2. | Section 2 (4.04) of R.S.B.C. 1979, c. 388 was repealed by S.B.C. 1995-27-3. |
[Provisions relevant to the enactment of these regulations: Social Service Tax Act, R.S.B.C. 1996, c. 431, sections 1, 33.1, 42 (2) (a), 68.01, 70, 71, 73 (1) (b) and (c), 74 (e), 76 (1) (k), 77, 84.1 (4), 90.3, 130 (a.1), 112.2 (2) (c), 128 to 138, 139, 140, 143 to 145 and 147]
Section 2 BEFORE amended by BC Reg 220/2010, effective July 1, 2010.
Definitions
2 (1) In sections 2.24, 3.4, 5.1 (1), 5.4, 5.6 to 5.13, 5.17 and 5.19 of this regulation, "tax" or "taxes" includes a levy or levies under section 67, 68 or 68.01 of the Act.
(2) In sections 3.2, 4.3, 4.4, 4.5, 5.1 (2), 5.2, 5.4, 5.5, 5.8 (1), 5.9 (1), 5.13, 5.14, 5.15 and 5.18 (2) (b) of this regulation, "vendor" includes a person who is required to collect tax under section 93 (1.1) of the Act.
[en. B.C. Reg. 133/2001, s. 1; am. B.C. Reg. 203/2007, Sch. s. 1.]
Section 2.18 BEFORE amended by BC Reg 264/2009, effective October 30, 2009 [retro from April 1, 2009].
Definition: prescription
2.18 "Prescription" means a formula or direction given by a practitioner, as defined under the Pharmacists, Pharmacy Operations and Drug Scheduling Act, or an optometrist of a remedy for or as a treatment for a disease or disorder.
[am. B.C. Regs. 36/2008, s. 1; 30/2009, s. 1.]
Section 2.24 BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
Definition: arrears
2.24 "Arrears" as used in section 33(1) of the Act1 includes all tax owing by a person guilty of an offence, regardless of when it became payable to Her Majesty.
[en. B.C.Reg. 167/62.]
Section 2.51 BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
Tangible personal property
2.51 For the purposes of section 112.2 (2) (c) of the Act, the following are prescribed:
(a) motor vehicles and trailers that are required to be registered under the Motor Vehicle Act;
(b) tangible personal property that is not subject to federal goods and services tax under sections 1 and 7 of Schedule VII to the Excise Tax Act (Canada).
[en. B.C. Reg. 285/99.]
Section 2.54 BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
Container
2.54 A container used by a seller to deliver a product for sale is exempt from tax under section 8 of the Act unless
(a) the container is subject to a deposit, credit, penalty or replacement charge to encourage its return for reuse as a container,
(b) the seller retains an interest in the container after the sale of the product,
(c) the container, or a similar container, is required to be returned to the seller after the sale, or
(d) the product is sold in a jurisdiction where the container is subject to a regulatory or contractual scheme to recover the container for reuse by the seller or by other participants in the scheme.
[en. B.C. Reg. 439/2004, s. 4.]
Section 3.12 (3) BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
(3) Tangible personal property that qualified for exemption under subsection (1) or (2) at the time that property entered British Columbia and that is subsequently used for a business purpose is exempt from tax imposed under section 9 (1.1) of the Act
(a) if the conversion to business use does not occur within the first 6 months after that property is brought into British Columbia, and
(b) if both of the conditions set out in the following subparagraph (i) or both of those set out in the following subparagraph (ii) are met:
(i) it is shown to the satisfaction of the commissioner that
(A) tax was paid to another province by the individual referred to in subsection (1) or (2) in respect of the tangible personal property, and
(B) that individual was not eligible for a refund or rebate under the law of the other province;
(ii) the tangible personal property
(A) is not a vessel, motor vehicle or aircraft, and
(B) was owned, physically possessed and used by the individual referred to in subsection (l) or (2) for more than 3 years before he or she moved to British Columbia.
Section 3.20 (2.2) BEFORE self-repealed by BC Reg 84/58, s. 3.20 (8.2) effective April 1, 2010
(2.2) The following are exempt from tax under the Act if designed for residential use and listed as being "ENERGY STAR Qualified" by the Office of Energy Efficiency, Natural Resources of Canada:
(a) refrigerators;
(b) freezers;
(c) clothes washers;
(d) integrated clothes washer-dryers.
Section 3.20 (1) (d) and (u) BEFORE repealed by BC Reg 84/58, s.3.20 (10) effective April 1, 2011.
(d) windows, doors, including side panels, and skylights that are listed as being "ENERGY STAR Qualified" by the Office of Energy Efficiency, Natural Resources Canada;
(u) gas-fired water heaters with an energy factor of 0.80 or greater, if purchased or leased for residential purposes;
Section 3.20 (1.01) BEFORE repealed by BC Reg 84/58, s.3.20 (10) effective April 1, 2011.
(1.01) In subsection (1) (u), "energy factor" means the energy factor as described in and tested in accordance with whichever of the following standards of the Canadian Standards Association is applicable:
(a) CAN/CSA-P.3-04, "Testing Method for Measuring Energy Consumption and Determining Efficiencies of Gas-Fired Storage Water Heaters";
(b) CAN/CSA-P.7-98, "Testing Method for Measuring Energy Loss of Gas-Fired Instantaneous Water Heaters".
Section 3.20 (1.2) to (1.5) BEFORE repealed by BC Reg 84/58, s.3.20 (10) effective April 1, 2011.
(1.2) In subsections (1.3) and (1.4), "formerly exempt tangible personal property" means the following tangible personal property, referred to in subsection (1) (d) or (e) as that subsection read on February 20, 2007:
(a) storm windows and storm doors, multiglazed windows and doors containing multiglazed windows;
(b) glass and other materials purchased by a vendor to be installed in the construction of multiglazed windows in a building for the purpose of creating a dead air space between panes as a thermal barrier.
(1.3) Subject to subsection (1.4), if
(a) on or after February 21, 2007, but before April 1, 2009, a purchaser takes delivery of and pays tax on or in respect of formerly exempt tangible personal property, and
either
(b) the formerly exempt tangible personal property of which delivery is taken is to be incorporated into real property in order to carry out a lump-sum or fixed-price contract entered into before February 21, 2007, for the construction, repair or improvement of real property, or
(c) delivery is taken, in execution of a written contract made by the purchaser with the seller before February 21, 2007, of not more than the quantity of the formerly exempt tangible personal property specified in the contract
the commissioner must, on application made before April 1, 2010, and on receipt of evidence satisfactory to the commissioner, pay out of the consolidated revenue fund a refund to the purchaser in an amount equal to the tax the purchaser paid.
(1.4) A refund may not be paid under subsection (1.3) if
(a) the purchaser is entitled, under the lump-sum or fixed-price contract, to recover the tax paid on or in respect of the formerly exempt tangible personal property, or
(b) the purchaser is not required by the written contract referred to in subsection (1.3) (c) to take delivery of a specific quantity of formerly exempt tangible personal property.
(1.5) Section 81 of the Act applies to subsection (1.3).
Section 3.20 (2) (b) to (e) BEFORE repealed by BC Reg 84/58, s.3.20 (10) effective April 1, 2011.
(b) oil-fired forced-air furnaces;
(c) boilers;
(d) air-source heat pumps;
(e) ground-source heat pumps.
Section 3.20 (2.3) BEFORE repealed by BC Reg 84/58, s.3.20 (10) effective April 1, 2011.
(2.3) Commercial boilers are exempt from tax under the Act if they
(a) are fired by natural gas or propane,
(b) have a boiler input rating of at least 200 000 BTU/h, and
(c) have a combustion efficiency of at least 90 percent as described in and tested in accordance with the following standards:
(i) for boilers with a boiler input rating less than 300 000 BTU/h, CAN/CSA-P.2-07, "Testing Method for Measuring the Annual Fuel Utilization Efficiency of Residential Gas-fired Furnaces and Boilers" of the Canadian Standards Association;
(ii) for boilers with a boiler input rating of at least 300 000 BTU/h, one of the following:
(A) ANSI Z21.13-2004/CSA 4.9-2004, "Gas-Fired Low Pressure Steam and Hot Water Boilers" of the Canadian Standards Association;
(B) BTS-2000 Testing Standard, "Method to Determine Efficiency of Commercial Space Heating Boilers" of the Hydronics Institute Division of the Air-Conditioning, Heating and Refrigeration Institute.
Section 3.20 (3) BEFORE repealed by BC Reg 84/58, s.3.20 (10) effective April 1, 2011.
(3) In subsection (2), "heat pump" means all major components integral to a heat pump system, including
(a) evaporator, coils, condenser, compressor, accumulator, expansion device, heat exchanger, valves, fans, blowers, pumps and controls, and
(b) piping, refrigerant solutions circulated within closed-loop heat pump systems and energy-efficient recovery thermostats,
but not including
(c) ductwork or other heating distribution systems used to circulate air in a residence,
(d) generic thermostats, or
(e) supplementary heating systems not integral to a heat pump system.
Section 3.20 (5) BEFORE repealed by BC Reg 84/58, s.3.20 (10) effective April 1, 2011.
(5) Section 81 of the Act applies to subsections (1.1), (4) and (4.1).
Section 3.20 (1) (v.1) BEFORE repealed per sub (11) by BC Reg 84/58, effective March 31, 2012.
(v.1) auxiliary power units, cabin heaters and engine heaters purchased or leased for use in or on a truck, including a truck tractor, with a gross vehicle weight of at least 5 000 kg;
Section 3.26 (7) BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
(7) Section 9 of the Act does not apply to an employer or a self-employed person or to a school board or similar authority with respect to work related safety equipment or apparel acquired exempt from taxation under subsection (2) by any of them.
Section 3.29 BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
Temporary equipment formula
3.29 (1) Where any of the following tangible personal property is purchased outside the Province and is brought into the Province after March 14, 1985 by a person who establishes to the satisfaction of the commissioner that it was brought into the Province for
(a) temporary use or consumption, and
(b) the purposes of
(i) Repealed. [B.C. Reg. 242/2001, s. 3.]
(ii) petroleum or natural gas exploration or development,
that person shall promptly pay to Her Majesty, at the end of each continuous period in a month during which the property is in the Province, 1/36th of the tax otherwise payable, at the time the property was first brought into the Province after March 14, 1985, on the purchase price of the property:
(c) Repealed. [B.C. Reg. 242/2001, s. 3.];
(d) cementing trucks;
(e) acid fracturing trucks;
(f) any vehicle on which seismic recording equipment or well logging equipment is permanently mounted.
(2) No tax is payable under this section on tangible personal property listed in subsection (1) where tax has been paid in respect of 36 periods described in that subsection.
(3) Where subsection (1) and section 12 (2) of the Act both apply, the tax payable is reduced to
(a) the amount payable by the application of subsections (1) and (2), or
(b) the amount payable by the application of section 12 (2) of the Act,
whichever is the lesser.
[en. B.C. Reg. 64/85, s. 7; am. B.C. Regs. 47/90; 116/2000, s. 7; 242/2001, s. 3.]
Section 3.36 (2) BEFORE amended by BC Reg 220/2010, effective July 1, 2010.
(2) The following used boom gear is exempt from taxes under sections 5 to 25 and 112.3 of the Act:
(a) boom chains used to tie the boomsticks together to form a frame;
(b) bundle and continuous wires used to secure the logs that are transported within the frame;
(c) swifter wires used to secure the bundled logs to the frame.
Section 3.37 (1) BEFORE amended by BC Reg 220/2010, effective July 1, 2010.
(1) An emission control device for diesel vehicles is exempt from tax under sections 5 to 25 and 112.3 of the Act, if the device is purchased for use with a diesel engine and the device has been verified in accordance with subsection (2) to reduce particulate-matter emissions from that type and model-year of engine by at least
(a) 20%, if the device is purchased before March 31, 2010, or
(b) 50%, if the device is purchased on or after March 31, 2010.
Section 4.1 BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
Registration of vendor
4.1 Where a vendor or lessor carries on business at more than one place, he shall obtain a registration certificate in respect of each individual place of business. The registration certificate shall be displayed in a prominent place on the premises; provided that in cases where a vendor or lessor has no fixed place of business in the Province, he shall keep his certificate on his person at all times while doing business and produce it upon request to a purchaser or a duly authorized representative of the commissioner.
[am. B.C. Reg. 305/81, s. 3.]
Section 4.2 BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
Registration of representatives of vendor
4.2 Where agents make sales on behalf of a principal and do not have any fixed place of business, a registration certificate shall be obtained for each agent. In such cases, the agent shall keep the certificate on his person at all times while doing business and produce it upon request to a purchaser or a duly authorized representative of the commissioner.
Section 4.5 BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
Discontinuance of business
4.5 Where a vendor or lessor ceases to carry on business in respect of which a registration certificate has been issued, the certificate shall thereupon be void and he shall return the same to the commissioner within 23 days of the date of discontinuance.
[am. B.C. Regs. 305/81, s. 3; 33/2007, s. 4.]
Section 4.8 BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
Eligibility for registration certificate
4.8 A person is not eligible to hold a registration certificate if that person, either directly or through a clerk, employee or agent, carries on or proposes to carry on business as a motor dealer as that term is defined in the Motor Dealer Act and is not registered under that Act.
[en. B.C. Reg. 230/2007.]
Section 5.8 (1) BEFORE amended by BC Reg 220/2010, effective July 1, 2010.
(1) For the purposes of section 95 of the Act, the allowances to vendors or lessors for collecting and forwarding tax to the government is, commencing on the return in respect of sales made in November 2008, as follows:
Section 7 BEFORE amended by BC Reg 220/2010, effective July 1, 2010.
Levels of fines for contravention of specific sections
7 A person who contravenes sections 3.4, 4.1 to 4.6, 5.1 to 5.7, 5.9 to 5.15, 5.17 or 5.18 commits an offence and is liable
(a) on a first conviction, to a fine of not less than $200 and not more than $500, and
(b) on a subsequent conviction for the same or another provision of this regulation, to a fine of not less than $500 and not more than $2 000.
[en. B.C. Reg. 360/82; am. B.C. Reg. 244/90, s. 2.]
Section 9.2 BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
Prescribed jurisdictions
9.2 For the purposes of section 30 (2) of the Act, prescribed jurisdictions are those provinces of Canada and those states of the United States of America that are participants in one or more of the following plans:
(a) International Registration Plan;
(b) Canadian Agreement for Vehicle Registration.
[en. B.C. Reg. 548/95, s. 3.]
Section 9.5 BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
Change of use to intraprovincial use
9.5 (1) The credit to which a person is entitled under section 31 of the Act in respect of a vehicle must be calculated in accordance with subsections (2) to (4) of this section.
(2) For the purposes of subsection (1), if the vehicle was licensed for interjurisdictional use before January 1, 1996, the credit to which the person licensing the vehicle is entitled is the aggregate of
(a) a credit for tax paid for the licensing year in which the change of use occurs, calculated as follows:
| Credit = TP — CR |
where
| TP | = | the tax that would have been payable under section 29 (2) of the Act if |
(i) the vehicle had been licensed for interjurisdictional use on the date that it was licensed for intraprovincial use, and
(ii) travel months, in the formula in section 29 (2) of the Act, represented the number of whole calendar months remaining in the vehicle licence year or fleet licence year, as the case may be, that would have applied to the vehicle had there been no change in use, divided by 12;
| CR | = | a credit calculated in the manner set out under section 9.3 if travel months in that formula represented the number of whole calendar months remaining in the vehicle licence year or fleet licence year, as the case may be, that would have applied to the vehicle had there been no change in use, divided by 12, and |
(b) a credit for tax paid before January 1, 1996 in relation to the licensing of the vehicle for interjurisdictional commercial purposes, which credit must be calculated as follows:
| Credit = DV X B X R |
where
| DV | = | the vehicle's depreciated value at the time that it is licensed for intraprovincial use; | |
| B | = | the highest ratio of BCD to TD that would have been applicable to the vehicle had that ratio been calculated in accordance with section 13 (5) or (6) or 2 (4.04)2of the Act as it read on December 31, 1995; | |
| R | = | the tax rate, as established under section 6 (1) of the Act, on the date that the vehicle is licensed for intraprovincial use. |
(3) For the purposes of subsection (1), if the vehicle that is licensed for intraprovincial use was acquired after January 1, 1996 and has been licensed for interjurisdictional use since that acquisition, the credit to which the person licensing the vehicle is entitled is the aggregate of
(a) a credit for tax paid for the licensing year in which the change in use occurs, calculated in the manner set out under subsection (2) (a), and
(b) a credit for tax paid in relation to the licensing of the vehicle for interjurisdictional commercial purposes, which credit must be calculated as follows:
| Credit for tax paid = DV x VR x ATR x R |
where
| DV | = | the depreciated value of the vehicle at the time that it is licensed for intraprovincial use; | |
| VR | = | the number of months the vehicle was licensed for interjurisdictional commercial purposes divided by 60; | |
| R | = | the tax rate, as established under section 6 (1) of the Act, on the date that the vehicle is licensed for intraprovincial use; | |
| ATR | = | the average travel ratio while the vehicle was licensed for interprovincial use. |
(4) For the purposes of subsection (1), if the vehicle being licensed for intraprovincial use had previously been licensed for intraprovincial use, the credit to which the person licensing the vehicle is entitled is the aggregate of
(a) a credit for tax paid for the licensing year in which the change in use occurs, calculated in the manner set out under subsection (2) (a), and
(b) a credit equal to the tax payable under section 31 (1) of the Act.
[en. B.C. Reg. 548/95, s. 3.]
Section 9.6 BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
Provincially licensed vehicles eligible for credit
9.6 If a vehicle licensed in British Columbia is eligible for a credit or a refund under section 33 of the Act, the credit or refund must be credited against the amount of the tax that is payable under that section on licensing the vehicle.
[en. B.C. Reg. 548/95, s. 3.]
Section 9.7 BEFORE amended by BC Reg 220/2010, effective July 1, 2010.
Application for credit or refund for extra-provincially licensed vehicles
9.7 Any person entitled to receive a credit or refund under section 31, 32 or 33 of the Act in respect of a vehicle must, if that person licenses the vehicle in a jurisdiction other than British Columbia, apply to the commissioner for that refund or credit.
[en. B.C. Reg. 548/95, s. 3.]
Division 11, sections 11.1 to 11.6 BEFORE repealed by BC Reg 84/58, s. 11.6 effective April 1, 2011.
Division 11 - Alternative Fuel Vehicles and Fuel Efficient Vehicles
Definitions
11.1 (1) In this Division and for the purposes of section 90.3 of the Act:
"alternative fuel" means electricity, ethanol, methanol, natural gas, propane or hydrogen-enriched compressed natural gas;
"alternative fuel vehicle" means a motor vehicle that
(a) is manufactured to operate
(i) exclusively on an alternative fuel,
(ii) as a hybrid electric vehicle,
(iii) as a bi-fuel vehicle, or
(iv) as a hydrogen fuel-cell bus,
(b) is a vehicle that has not since its manufacture been acquired by means of a retail sale or a retail lease,
(c) is designed to be operated, and is or will be licensed for use, on a highway as defined in section 1 of the Motor Vehicle Act,
(d) meets the standards prescribed under the Motor Vehicle Safety Act (Canada),
but does not include a multijurisdictional vehicle or a two-wheeled vehicle, other than a two-wheeled vehicle manufactured to operate exclusively on electricity;
"bi-fuel vehicle" means a motor vehicle that has 2 separate fuel storage tanks so that the vehicle can be propelled by an alternative fuel, other than electricity, or by gasoline or diesel fuel;
"hybrid electric vehicle" means a motor vehicle that has both an electric motor and an internal combustion engine and that
(a) is designed so that
(i) the vehicle's engine automatically shuts off when the vehicle is idling, braking or coasting, and
(ii) the vehicle captures and stores in its battery energy generated during braking, and
(b) is capable of sustained propulsion either
(i) simultaneously by the motor and the engine, or
(ii) solely by the motor, operating on electricity generated by the engine;
"hydrogen fuel-cell bus" means a passenger bus whose primary source of power is a fuel-cell system that chemically combines hydrogen and oxygen to generate electricity for the buss electric-drive motors;
"passenger bus" means a motor vehicle that
(a) is used for the purpose of carrying passengers within British Columbia, and
(b) has a seating capacity of at least 30 passengers,
but does not include a multijurisdictional vehicle;
"retail lease" means a lease to a person who, as a result of the lease, becomes a lessee;
"shuttle bus" means a motor vehicle that
(a) is used for the purpose of carrying passengers within British Columbia, and
(b) has a seating capacity of at least 14 passengers but not more than 29 passengers,
but does not include a multijurisdictional vehicle.
(2) In this Division:
(a) a reference to a "purchaser" with respect to an alternative fuel vehicle or a fuel efficient vehicle includes a person to whom section 11 (1), 16 or 20.1 of the Act applies;
(b) a reference to a "retail sale" with respect to an alternative fuel vehicle or a fuel efficient vehicle includes a sale outside British Columbia to a person who would be a purchaser if the sale was in British Columbia ;
(c) a reference to a "retail lease" with respect to an alternative fuel vehicle or a fuel efficient vehicle includes a lease to a person for use outside British Columbia if the person would be a lessee if the lease was for use in British Columbia.
[en. B.C. Reg. 259/99, s. 3; am. B.C. Regs. 469/2004, s. 1; 45/2005, s. 4;
32/2006, s. 3; 33/2006; 109/2006, s. (b); 36/2008, s. 9; 148/2008, s. 7.]
Reduced tax rates for alternative fuel passenger vehicles
11.2 (1) The rate of tax for a passenger vehicle that qualifies as an alternative fuel vehicle is as follows:
(a) for the purposes of section 6 (4) of the Act, the rate that would be applicable under section 6 (3) of the Act if the purchase price were reduced by $7 000;
(b) for the purposes of section 20 (3) of the Act, the rate that would be applicable if the tax rate value for that vehicle were reduced by $7 000.
(1.1) and (1.2) Repealed. [B.C. Reg. 33/2007, s. 11.]
(2) Subsection (1) (b) applies only if the lease is for a period of at least 12 months.
(3) The tax rate established under subsection (1) (b) in respect of a leased vehicle applies to
(a) all lease payments made by the first lessee of the vehicle under the terms of the lease agreement, and
(b) any subsequent variations or renewals of the lease agreement for the same vehicle by the same lessee.
(4) If a lessee referred to in subsection (3) exercises an option to purchase the vehicle in accordance with the terms of the first lease agreement or any subsequent lease agreement in respect of the same vehicle, the tax rate applicable to that purchase is the lower of
(a) the rate paid on the lease payments for that vehicle under subsection (1) (b), and
(b) the rate payable under section 6 (3) of the Act.
(5) This section does not operate to reduce the purchase price or lease price to which the tax rate is applied.
[en. B.C. Reg. 259/99, s. 3; am. B.C. Regs. 45/2005, s. 5 (b); 33/2007, s. 11.]
Tax reductions for alternative fuel vehicles
11.3 (1) In this section, "pre-reduction amount" means
(a) the amount of tax that would have been payable under the Act on the purchase of an alternative fuel vehicle, or
(b) the sum of the amounts of tax that would have been payable under the Act on every lease price payable under a lease of an alternative fuel vehicle
but for this section and section 75 (2) of the Act.
(2) For the purposes of section 75 (2) of the Act,
(a) the tax payable by a purchaser of an alternative fuel vehicle is reduced by the applicable amount set out in subsection (3), and
(b) subject to subsection (4), the tax payable by a lessee who, under an agreement made on or after February 16, 2005, leases an alternative fuel vehicle for a continuous period of at least 12 months is reduced by the applicable amount set out in subsection (3).
(3) The amount of a tax reduction for the purposes of subsection (2) is as follows:
(a) in the case of an alternative fuel vehicle other than a passenger bus, a shuttle bus or a hybrid electric vehicle, the smaller of the following amounts:
(i) 50% of the pre-reduction amount;
(ii) $1 000;
(b) in the case of an alternative fuel vehicle that is a passenger bus or a hydrogen fuel-cell bus, the smaller of the following amounts:
(i) 50% of the pre-reduction amount;
(ii) $10 000;
(c) in the case of an alternative fuel vehicle that is a shuttle bus, the smaller of the following amounts:
(i) 50% of the pre-reduction amount;
(ii) $5 000;
(d) in the case of an alternative fuel vehicle that is a hybrid electric vehicle but not a passenger bus or a shuttle bus, the smaller of the following amounts:
(i) the pre-reduction amount;
(ii) $2 000.
(4) A lessee's tax reduction must first be applied against the amount of tax otherwise payable on the lessee's down payment on the lease of the alternative fuel vehicle, and the balance of the reduction must be applied, proportionally, against the amount of tax otherwise payable on the remaining lease payments.
(5) Despite subsections (6) and (7), the amount of a lessee's tax reduction with respect to all lease payments made under the lease must be determined in accordance with subsection (3) as it read at the time the lease agreement was made.
(6) Repealed. [B.C. Reg. 33/2007, s. 12.]
(7) Repealed. [B.C. Reg. 148/2008, s. 8.]
[en. B.C. Reg. 145/2005, s. 3; am. B.C. Regs. 33/2007, s. 12; 36/2008, s. 10; 148/2008, s. 8.]
Refund for hybrid buses
11.4 The amount of a refund payable under section 90.3 of the Act is the lesser of
(a) the total tax paid to complete the modification referred to in section 90.3 (2) (a) of the Act, and
(b) if the vehicle modified
(i) is a shuttle bus, $5 000, or
(ii) is a passenger bus, $10 000.
[en. B.C. Reg. 109/2006, s. (c).]
Tax reductions for fuel efficient vehicles
11.5 (1) In this section and for the purposes of section 75 (3) of the Act:
"fuel-consumption rate" means the rate of fuel consumption for a passenger car or light truck determined by the following formula:
| rate = 0.55 A + 0.45 B |
| where | ||
| A | = | the fuel consumption rating for that passenger car or light truck when operating in a city, as listed on the government of Canada EnerGuide label produced by the manufacturer of the vehicle for the purpose of being affixed to the vehicle; |
| B | = | the fuel consumption rating for the passenger car or light truck when operating on a highway, as listed on the government of Canada EnerGuide label produced by the manufacturer of the vehicle for the purpose of being affixed to the vehicle; |
"fuel-efficient vehicle" means a passenger car or a light truck that qualifies for a tax reduction under subsection (2) or (3);
"light truck" means a 4-wheel motor vehicle that
(a) is one of the following model types:
(i) pickup truck, other than a pickup truck that is larger than ¾ ton;
(ii) sport utility vehicle;
(iii) minivan or large van, other than a camper van, and
(b) has not since its manufacture been acquired by means of a retail sale or a retail lease
and does not include an alternative fuel vehicle;
"passenger car" means a 4-wheel motor vehicle that
(a) is one of the following model types:
(i) two-seater;
(ii) compact, subcompact, mid-size or full-size car;
(iii) station wagon, and
(b) has not since its manufacture been acquired by means of a retail sale or a retail lease
and does not include an alternative fuel vehicle;
"pre-reduction amount" means
(a) the amount of tax that would have been payable under the Act on the purchase of a fuel-efficient vehicle, or
(b) the sum of the amounts of tax that would have been payable under the Act on every lease price payable under a lease of a fuel-efficient vehicle
but for this section and section 75 (3) of the Act.
(2) For the purposes of section 75 (3) of the Act, the tax payable by a purchaser or, subject to subsections (4) and (5), a lessee of a passenger car purchased or leased from a dealership in Canada is reduced by the smaller of the pre-reduction amount and the applicable of the following amounts:
(a) $2 000, in the case of a passenger car with a fuel consumption rate of 5.5 litres of fuel or less per 100 km;
(b) $1 500, in the case of a passenger car with a fuel consumption rate of more than 5.5 but less than or equal to 6.0 litres of fuel per 100 km;
(c) $1 000, in the case of a passenger car with a fuel consumption rate of more than 6.0 but less than or equal to 6.5 litres of fuel per 100 km.
(3) For the purposes of section 75 (3) of the Act, the tax payable by a purchaser or, subject to subsections (4) and (5), lessee of a light truck purchased or leased from a dealership in Canada is reduced by the smaller of the pre-reduction amount and the applicable of the following amounts:
(a) $2 000, in the case of a light truck with a fuel consumption rate of 7.3 litres of fuel or less per 100 km;
(b) $1 500, in the case of a light truck with a fuel consumption rate of more than 7.3 but less than or equal to 7.8 litres of fuel per 100 km;
(c) $1 000, in the case of a light truck with a fuel consumption rate of more than 7.8 but less than or equal to 8.3 litres of fuel per 100 km.
(4) Subsections (2) and (3) do not apply to a lease unless the lease was entered into on or after the date this section comes into force and is for a continuous period of at least 12 months.
(5) A lessee's tax reduction must first be applied against the amount of tax otherwise payable on the lessee's down payment on the lease of the fuel-efficient vehicle, and the balance of the reduction must be applied, proportionally, against the amount of tax otherwise payable on the remaining lease payments.
[en. B.C. Reg. 148/2008, s. 9.]
Section 15.1 (1) BEFORE amended by BC Reg 220/2010, effective July 1, 2010.
(1) Subject to subsection (2), the following tangible personal property is prescribed for purposes of section 77 (a) of the Social Service Tax Act and exempt from taxation imposed by sections 5 to 25 and 112.3 of the Act:
Section 19.1 BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
Prescribed circumstances
19.1 The commissioner may enter into an agreement referred to in section 93.1 of the Act with a person in the following circumstances:
(a) the person
(i) has, over the preceding 3-year period, a history of compliance with the tax payment, collection and remittance requirements of the Act that is satisfactory to the commissioner,
(ii) maintains accounting and inventory management systems that the commissioner is satisfied would ensure accurate remittance of tax in accordance with the agreement, and
(iii) has, in the previous 3 calendar years,
(A) purchased or leased on average not less than $250 000 per year of machinery or equipment eligible for an exemption from tax under Division 13 if used for an exempt purpose, and received on average an exemption under that Division on at least $125 000 worth of that machinery or equipment per year,
(B) purchased on average not less than $250 000 per year of tangible personal property stored in inventory for later use either inside or outside British Columbia and received on average a refund of tax under section 87 of the Act on at least $125 000 per year of that property, or
(C) both
(I) purchased or leased machinery and equipment referred to in clause (A) and purchased the tangible personal property referred to in clause (B) totaling on average at least $250 000 per year, and
(II) received an exemption referred to in clause (A) and a refund referred to in clause (B) in relation to at least $125 000, on average, of the machinery and equipment or tangible personal property per year;
(b) the person was, in the previous 3 years, a party to an agreement referred to in section 93.1 of the Act and meets the requirements of paragraph (a) (i) and (ii);
(c) the person submits an application to the commissioner in a form and manner satisfactory to the commissioner.
[en. B.C. Reg. 148/2008, s. 10.]
Section 19.3 BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
Requirements when making purchases that are subject to an agreement
19.3 (1) A person who makes a purchase or enters into a lease that is subject to an agreement referred to in section 19.1 must provide the vendor or lessor with the special registration number referred to in section 19.2 (c).
(2) A vendor or lessor referred to in subsection (1) must record the special registration number on the invoice or bill of sale to substantiate non-collection of tax on that sale.
(3) If a vendor or lessor does not collect tax from a person who claims, but is not entitled to, a benefit under an agreement referred to in section 19.1, the vendor or lessor is not liable for a penalty imposed under section 115 (5) of the Act, provided that the vendor or lessor has complied with subsection (2).
[en. B.C. Reg. 148/2008, s. 10.]
Division 20 BEFORE repealed by BC Reg 220/2010, effective July 1, 2010.
Alternative fuel vehicles and fuel-efficient vehicles
20.1 (1) Despite the repeal of Division 11 on April 1, 2011, terms defined in that Division as it read immediately before its repeal apply to this section.
(2) Despite the repeal of Division 11 on April 1, 2011,
(a) the amount of a lessee's tax reduction with respect to all lease payments made under a lease of an alternative fuel vehicle must be determined in accordance with subsection 11.3 as it read at the time the lease agreement was made, and
(b) the amount of a lessee's tax reduction with respect to all lease payments made under a lease of a fuel-efficient vehicle must be determined in accordance with section 11.5 as it read at the time the lease agreement was made.
[en. B.C. Reg. 148/2008, s. 10.]
Section 21.4 (2), (5), (6), (7) and (8) BEFORE amended by BC Reg 220/2010, effective May 1, 2010.
(2) Despite section 5.1 (3) of the Act, tax is payable by a purchaser under section 5 of the Act in respect of a purchase of tangible personal property that is software delivered by electronic means if a portion of the consideration for the software becomes due before July 1, 2010 or is paid before July 1, 2010 without having become due.
(5) Despite section 5.1 (3) of the Act and subsection (2) of this section, tax is payable by a purchaser under section 5 of the Act in respect of a purchase of tangible personal property that is a designated licence
(a) if, before May 1, 2010, the consideration for the designated licence becomes due or is paid without having become due,
(b) if the period of use under the designated licence begins before July 1, 2010 and ends before July 31, 2010,
(c) if the period of use under the designated licence begins before July 1, 2010 and ends on or after July 31, 2010, or
(d) if
(i) before May 1, 2010, only a portion of the consideration for the designated licence becomes due or is paid without having become due, and
(ii) the period of use under the designated licence begins on or after July 1, 2010.
(6) Despite section 5.1 (3) of the Act and subsection (2) of this section, tax is not payable by a purchaser under section 5 of the Act in respect of a purchase of tangible personal property that is a designated licence if
(a) all of the consideration for the designated licence becomes due on or after May 1, 2010,
(b) none of the consideration for the designated licence is paid before May 1, 2010, and
(c) the period of use under the designated licence begins on or after July 1, 2010.
(7) If tax is payable under section 5 of the Act by reason only of subsection (5) (c) of this section, for the purpose of calculating the tax payable under section 5 of the Act, the purchase price of the tangible personal property that is a designated licence is deemed to be the amount equal to the purchase price of the designated licence less that portion of the consideration for the designated licence that
(a) is not paid before May 1, 2010,
(b) becomes due on or after May 1, 2010, and
(c) is attributable to the portion of the period of use that is on or after July 1, 2010.
(8) If tax is payable under section 5 of the Act by reason of subsection (5) (d) of this section, for the purpose of calculating the tax payable under section 5 of the Act, the purchase price of the tangible personal property that is a designated licence is deemed to be the amount equal to the purchase price of the designated licence less that portion of the consideration for the designated licence that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.