Most for-profit businesses in British Columbia qualify for the PST rebate for select machinery and equipment.
This PST rebate applies to most machinery, equipment, and durable goods purchased between September 17, 2020 and September 30, 2021.
Who can apply for the PST rebate on select machinery?
Almost any and every incorporated business that made qualifying purchases and during the indicated period is eligible to apply.
Government entities, hospitals, schools or other non-profit organizations do not qualify for this rebate.
Some examples explaining eligibility are provided in this Ministry of Finance Tax Notice.
What purchases qualify for this equipment rebate?
An amazingly large list of purchases qualify for the equipment rebate. These include almost all durable goods and non-consumables.
One important qualifier is that they have to have been purchased in B.C. or brought into B.C. for the purpose of growing or continuing the work of attempting to earn a profit during the indicated period.
An amazing array of purchases qualify, including harnesses for livestock and spacecraft used for telecommunications.
Some qualifying purchases include:
- Logging equipment (that doesn’t apply for other rebates)
- Medical or dental equipment
- Power equipment
- Computers and software
- Zero-emissions vehicles
A more comprehensive list of qualifying purchases, divided by tax class, is available at this B.C. PST rebate explanation page.
Of course, this means that a broad range of consumable purchases do not apply for this rebate. Among non-qualifying purchases are boats, vehicles that are not zero-emissions, any consumable such as office supplies, or goods purchased for resale.
When can I apply for this equipment rebate?
The PST must have been paid on time, or in a timely manner if the purchase has not yet been made, in order to qualify for the rebate.
If the PST is not paid on time, then you are ineligible to apply for the rebate.
A more detailed list of the PST payment timeline and rules is available in this PST Chapter 35 part 2 document.
How do I apply for the PST rebate on select machinery and equipment?
First, gather the appropriate materials that confirm the purchase was made within the indicated period of September 17, 2020 to September 30, 2021. This includes verification that the tax was paid during this same time.
Provide the following documentation:
- Incorporation information
- Direct deposit information (for payment of the refund)
- Official documentation tying the bank account to the business that could include a canceled check or a letter from the banking institution
Apply during one of the available payment periods:
April 1, 2021 – September 30, 2021 First application period (recommended for purchases that have already occurred)
October 1, 2021 – March 31, 2022 Second application period (Can be used for all purchases or for ones occurring between now and September 30, 2021.)
You can submit a maximum of two applications. Either submit one during each period, or submit two during the second period. If you submit one during the first application period you can only submit one during the second.
If you have further or more detailed questions about the PST B.C. rebate for machinery or equipment, you can refer to the B.C. PST Rebate website here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.