| Copyright (c) Queen's Printer, Victoria, British Columbia, Canada | Licence Disclaimer |
| This archived regulation consolidation is current to December 3, 2004 and includes changes enacted and in force by that date. For the most current information, click here. |
SOCIAL SERVICE TAX ACT
Social Service Tax Act Regulations — Continued
B.C. Reg. 84/58
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.]
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.
4.3 Where a vendor or lessor changes his address, he shall forthwith return his registration certificate to the commissioner for amendment.
[am. B.C. Reg. 305/81, s. 3.]
4.4 Where a vendor or lessor changes the name or nature of his business, he shall forthwith return his registration certificate to the commissioner and apply for a new one.
[am. B.C. Reg. 305/81, s. 3.]
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 15 days of the date of discontinuance.
[am. B.C. Reg. 305/81, s. 3.]
4.6 Where a registration certificate is lost or destroyed, application shall immediately be made to the commissioner for a copy of the original.
4.7 Repealed. [B.C. Reg. 244/90, s. 1.]
4.8 A person is not eligible to hold a registration certificate if that person, either directly or through a clerk, employee or agent,
(a) 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, or
(b) keeps for sale or proposes to keep for sale, sells or proposes to sell or gives or proposes to give, in consideration of the purchase or transfer of property or other consideration, liquor, if the person does not hold the licences required to do so under the Liquor Control and Licensing Act.
[en. B.C. Reg. 175/94, s. 7.]
Division 5 — Returns and Records
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.]
5.2 The returns by vendors or lessors shall be made to the commissioner at the end of the reportable period, but not later than 15 days after the last day of each period.
[am. B.C. Regs. 305/81. s. 4; 79/87, s. 7.]
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.]
5.4 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.
[am. B.C. Reg. 305/81. s. 3.]
5.5 When a vendor or lessor disposes of or discontinues his business, he shall, not later than 15 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. Reg. 305/81, s. 3.]
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.]
5.7 All persons other than vendors or lessors who sell or lease tangible personal property 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 15 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.]
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 Province is, commencing on the return in respect of sales made in April, 1994, as follows:
Amount of Tax Collected | Commission per Vendor or Lessor | |
|---|---|---|
|
| ||
$0.00—$11.00 | The amount of tax collected | |
|
| ||
$11.01—$333.33 | $11 | |
|
| ||
more than $333.33 | 3.3% of the tax collected to a maximum of $99 | |
(1.1) The maximum allowance payable under subsection (1) is $85 in respect of sales made after February 28, 1981 but before April 1, 1987.
(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 section 5.2.
[en. B.C. Regs. 118/81; am. B.C. Regs. 305/81, s. 4; 79/87, s. 8; 175/94, s. 8.]
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 not later than 15 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.
[am. B.C. Regs. 305/81, s. 3; 79/87, s. 7; 98/95, s. 5; 256/95.]
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.]
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.
(1.1) 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.]
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]
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.]
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 7 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.]
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.]
5.16 Repealed. [B.C. Reg. 287/82, s. 1.]
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.
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 Superintendent of Motor Vehicles, or
(b) where the tax has been collected by a vendor, provide to the Superintendent of Motor Vehicles 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. Reg. 548/95, s. 2.]
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 15th 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.
[en. B.C. Reg. 287/82, s. 3; am. B.C. Regs. 175/94, s. 9; 94/98, s. 4.]
6.1 Repealed. [B.C. Reg. 22/93, s. 3.]
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.]
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.]
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.]
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.]
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.]
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.]
8.4 Spent
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.]
8.6 Spent
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.]
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.]
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.]
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.]
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.]
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
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.]
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.]
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 |
3.154% |
|
|
|
|
the calendar year following the acquisition year |
2.460% |
|
|
|
|
the second calendar year following the acquisition year |
1.957% |
|
|
|
|
the third calendar year following the acquisition year |
1.594% |
|
|
|
|
the fourth calendar year following the acquisition year |
1.336% |
[en. B.C. Reg. 548/95, s. 3, am. B.C. Reg. 303/2002, s. 1.]
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.]
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)2 of 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.]
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.]
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.]
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 |
0.150% |
|
|
|
|
the calendar year following the acquisition year |
0.150% |
|
|
|
|
the second calendar year following the acquisition year |
0.150% |
|
|
|
|
the third calendar year following the acquisition year |
0.150% |
|
|
|
|
the fourth calendar year following the acquisition year |
0.150% |
|
|
|
|
the fifth calendar year following the acquisition year |
0.815% |
|
|
|
|
the sixth calendar year following the acquisition year |
0.894% |
|
|
|
|
the seventh calendar year following the acquisition year |
0.982% |
|
|
|
|
the eighth calendar year following the acquisition year |
1.001% |
|
|
|
|
the ninth calendar year following the acquisition year |
1.100% |
|
|
|
(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 |
0.628% |
|
|
|
|
the calendar year following the acquisition year |
0.643% |
|
|
|
|
the second calendar year following the acquisition year |
0.662% |
|
|
|
|
the third calendar year following the acquisition year |
0.684% |
|
|
|
|
the fourth calendar year following the acquisition year |
0.705% |
|
|
|
|
the fifth calendar year following the acquisition year |
0.815% |
|
|
|
|
the sixth calendar year following the acquisition year |
0.895% |
|
|
|
|
the seventh calendar year following the acquisition year |
0.982% |
|
|
|
|
the eighth calendar year following the acquisition year |
1.001% |
|
|
|
|
the ninth calendar year following the acquisition year |
1.100% |
|
|
|
[en. B.C. Reg. 89/96, s. 2, am. B.C. Reg. 303/2002, s. 2.]
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
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.]
Division 11 — Alternative Fuel Vehicles
11.1 In this Division:
"alternative fuel" means electricity, ethanol, methanol, natural gas or propane;
"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, or
(iii) as a bi-fuel vehicle,
(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 licensed for use, on a highway, and
(d) meets the standards prescribed under the Motor Vehicle Safety Act (Canada),
but does not include a multijurisdictional vehicle or a two-wheeled vehicle;
"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 or by gasoline or diesel fuel;
"hybrid electric vehicle" means a motor vehicle propelled by both
(a) stored electricity, and
(b) gasoline, diesel fuel, hydrogen, natural gas, propane, methanol or ethanol;
"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.
[en. B.C. Reg. 259/99, s. 3; am. B.C. Reg. 469/2004, s. 1.]
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.
(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.]
11.3 (1) A person who purchased a motor vehicle that was an alternative fuel vehicle at the time of purchase is eligible for a refund of some or all of the tax paid in respect of the vehicle if
(a) in the case of an alternative fuel vehicle other than a passenger bus or a shuttle bus, tax in the amount of the refund under subsection (3) (a) has been paid in respect of that vehicle,
(b) in the case of an alternative fuel vehicle that is a passenger bus, tax in the amount of the refund under subsection (3) (b) has been paid in respect of that vehicle, or
(c) in the case of an alternative fuel vehicle that is a shuttle bus, tax in the amount of the refund under subsection (3) (c) has been paid in respect of that vehicle.
(2) A person who leases, for a period of at least 12 months, a motor vehicle that was an alternative fuel vehicle at the commencement of the lease is eligible for a refund of some or all of the tax paid in respect of the vehicle if
(a) in the case of an alternative fuel vehicle other than a passenger bus or a shuttle bus, tax in the amount of the refund under subsection (3) (a) has been paid in respect of that vehicle,
(b) in the case of an alternative fuel vehicle that is a passenger bus, tax in the amount of the refund under subsection (3) (b) has been paid in respect of that vehicle, or
(c) in the case of an alternative fuel vehicle that is a shuttle bus, tax in the amount of the refund under subsection (3) (c) has been paid in respect of that vehicle.
(3) The amount of the refund to which a qualifying person is entitled under subsection (1) or (2) is
(a) if that vehicle is not a passenger bus or a shuttle bus, the smaller of the following amounts:
(i) 30% of the tax paid in respect of the purchase, lease or use of that vehicle;
(ii) $1 000;
(b) if that vehicle is a passenger bus, the smaller of the following amounts:
(i) 30% of the tax paid in respect of the purchase, lease or use of that vehicle;
(ii) $10 000;
(c) if that vehicle is a shuttle bus, the smaller of the following amounts:
(i) 30% of the tax paid in respect of the purchase, lease or use of that vehicle;
(ii) $5 000.
[en. B.C. Reg. 259/99, s. 3; am. B.C. Regs. 182/2001; 469/2004, ss. 2-4.]
Division 12 — Taxable and Non-Taxable Tangible Personal Property Sold for a Single Price
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.]
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
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%;
"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;
"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 fabricates, manufactures, processes or produces 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) a reference to "fabricate, manufacture, process or produce" includes the development of software and custom software but does not include
(i) growing, harvesting or producing agriculture or aquaculture products or raising livestock,
(ii) logging,
(iii) the production of television programs, radio programs, motion pictures, commercials, master films, master video tapes, or any similar product in electronic format,
(iv) the provision of a service, or
(v) 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, the fabrication, manufacture, processing or production of tangible personal property and occur at the manufacturing site,
(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 fabricated, manufactured, processed or produced 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. Reg. 55/2003, s. 4.]
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 head, 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 head, 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.]
13.3 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, or
(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.
[en. B.C. Reg. 242/2001, s. 4.]
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;
(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.]
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.]
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.]
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 head, 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. Reg. 55/2004, s. 6.]
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 head, 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.]
13.9 Despite anything in sections 13.2 to 13.8, 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 boom boats purchased or leased by a person described in section 13.3 and used exclusively for purposes described in section 13.3 (c), 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) or 13.5 (2) (f);
(e) 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 within a manufacturing site, at a mine site or at a well head, natural gas processing plant or petroleum refinery;
(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 head 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.
[en. B.C. Reg. 242/2001, s. 4; am. B.C. Reg. 55/2003, s. 5.]
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) a local government body as defined in Schedule 1 of the Freedom of Information and Protection of Privacy Act;
(e) 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.]
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.]
13.10.2 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.
[en. B.C. Reg. 105/2002, s. 3.]
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.]
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 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 or parts 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.]
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.]
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.]
Division 14 – Application for Refund on Purchases Made with PAC-Raised Funds
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.]
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
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 and 112.3 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 run-of-river 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. Reg. 55/2004, s. 8.]
Division 16 – Tangible Personal Property Incidental to a Sale
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.]
[Provisions of the Social Service Tax Act, R.S.B.C. 1996, c. 431, relevant to the enactment of these regulations: sections 1, 33.1, 42 (2) (a), 70, 71, 73 (1) (b) and (c), 74 (e), 76 (1) (k), 77, 84.1 (4), 112.2 (2) (c) and 128 to 138]
|
|
|
| 2. | Section 2 (4.04) of R.S.B.C. 1979, c. 388 was repealed by S.B.C. 1995-27-3. |
Copyright (c) 2004: Queen's Printer, Victoria, British Columbia, Canada