The Freelancers Guide to Provincial Sales Tax (PST)

March 26, 2019 Posted by Uncategorized 0 thoughts on “The Freelancers Guide to Provincial Sales Tax (PST)”

How Provincial Sales Tax works if your self-employed

In another post, we covered GST/HST filing frequency and due dates for the self-employed. If you are self-employed, and are selling goods or services in British Columbia, Manitoba or Saskatchewan, additional PST rules will apply.

We can help you stay Sorted TM with the following:

How much tax do you charge for sales in British Columbia (BC)?

If you have sales in BC, you will charge GST (5%) and PST (7%) on your sales.

PST that you collect should be reported on your BC PST tax return and a payment should be made to Province of British Columbia.

  1. How often are you required to file BC PST return?

The frequency of PST filing varies based on the amount of PST collected.

BC PST Collectable Per Year Ongoing Reporting Period
> $12,000 Monthly only
$6,000 > PST collected > $12,000 Monthly or Quarterly
$3,000 > PST Collected > $6,001 Quarterly or Semi-annual
$3,000 or less Quarterly, Semi-annual or Annual
  1. What are the filing and payment due dates for BC PST?

BC PST return should be filed and payment should be made on or before the last day of the month following the end of the reporting period.

For example:

If you file BC PST quarterly and your reporting period is from Jan 1st to Mar 31st, then your PST tax return filing and PST payment due date will be April 30th.

How much tax do you charge for sales in Manitoba (MB)

If you have sales in MB, you will charge GST (5%) and PST (8%) on your sales.

PST that you collect should be reported on your MB PST tax return and a payment should be made to Province of Manitoba.

  1. How often are you required to file MB PST return?

The frequency of PST filing varies based on the amount of PST collected.

MB PST Collectable Per Year Ongoing Reporting Period
PST collected > $4,999 Monthly only
$499 > PST collected > $5,000 Quarterly
Less than $500 Annual
  1. What are the filing and payment due date for MB PST?

MB PST return should be filed and payment should be made on or before the 20th day of the month following the end of the reporting period.

For example:

If you file MB PST quarterly and your reporting period is from Jan 1st to Mar 31st, then your PST tax return filing and PST payment due date will be April 20th.

How much tax do you charge for sales in Saskatchewan (SK)

If you have sales in SK, you will charge GST (5%) and PST (6%) on your sales.

PST that you collect should be reported on your SK PST tax return and a payment should be made to Province of Saskatchewan.

  1. How often are you required to file SK PST return?

The frequency of PST filing varies based on the amount of PST collected.

SK PST Collectable Per Year Ongoing Reporting Period
PST Collected > $7,200 Monthly only
$3,600 > PST collected > $7,201 Quarterly
$0 > PST Collected > $3,601 Annual
  1. What are the filing and payment due date for SK PST?

SK PST return should be filed and payment should be made on or before the 20th day of the month following the end of the reporting period.

For example:

If you file SK PST quarterly and your reporting period is from Jan 1st to Mar 31st, then your PST tax return filing and PST payment due date will be April 20th.

 


Prepared by : Nikhil Aggarwal, CPA, CGA PMP
Nikhil Aggarwal is a CPA, CGA and a Tax expert. He strongly believes in transforming obstacles into opportunities and loves working with businesses, entrepreneurs and individuals. He has over 10 years of experience in accounting, taxation and technology. He has a proven track record of delighting the clients by finding over $20 million in tax savings. Nikhil has also completed Canadian In-depth Tax Course, which is the most comprehensive tax training program in Canada.
This article offers general information only and is not intended as legal, tax, or other professional advice. A professional advisor should be consulted regarding your specific situation. While information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed.
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