It’s that time of year again. Government budget season is upon us. British Columbia is the second province to bring down a budget this year. The focus of their budget was child care, affordable housing and services. There was some provincial sales tax (PST) changes announced to help fund these initiatives. British Columbia imposes a tax on passenger vehicles based on the value of the vehicles. Graduated tax rates, or luxury tax rates, start where the vehicle is valued at $55,000 at which point there is an additional 1% tax applied at the time of sale of the vehicle for a total tax of 8%. The current luxury tax rate for vehicles valued at $57,000 and over carries a 10% tax (12% for gifts and private sales). The British Columbia budget added two additional categories of luxury tax rates as follows: Read More
How does PST (Provincial Sales Tax) work and how is it different from GST (Goods and Services Tax)?
PST is a provincially levied retail sales tax that is generally applied to goods or services acquired for personal use in British Columbia, unless there is a specific exemption. GST is a federally levied value added consumption tax that is applied to the supply of most of the goods and services purchased in Canada. Read More
What are Government Taxes Payable on a Balance Sheet?
The Government Taxes Payable category appears under Current Liabilities on a Balance Sheet as it is expected that the amounts owing will be paid within one year. It represents funds that a company has an obligation to pay to government bodies such as Canada Revenue Agency (CRA).
How does PST work and how is it different from GST?
PST (Provincial Sales Tax) is a provincially-levied retail sales tax that is generally applied to goods or services acquired for personal use in British Columbia, unless there is a specific exemption.
GST (Goods and Services Tax) is a federally-levied value added consumption tax that is applied to the supply of most of the goods and services purchased in Canada.