Copyright (

c) Queen's Printer,

Victoria, British Columbia, Canada

License

Disclaimer

2011/12 Legislative Session: 4th Session, 39th Parliament

FIRST READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

HONOURABLE KEVIN FALCON

MINISTER OF FINANCE AND DEPUTY PREMIER

BILL 54 – 2012

PROVINCIAL SALES TAX ACT

Contents

Part 1 –

Interpretation

Division 1 –

Definitions and

Interpretation

Definitions

Proof of residence in British Columbia

Deemed expenses of a person

Transactions deemed to be transfer of possession

Carrying on business in British Columbia

Deemed use of tangible personal property or software in the course of business

How tax is to be calculated

Liability of other persons

Division 2 – Purchase Price and Lease Price

Purchase price of tangible personal property

Original purchase price of tangible personal property

Purchase price of tangible personal property related to affixed machinery and improvements to real property

Lease price of tangible personal property

Original lease price of tangible personal property

Purchase price of software

Original purchase price of software

Purchase price of tangible personal property or software acquired or received by promotional distribution

Purchase price of taxable service

Original purchase price of related service

Original purchase price of accommodation

Original purchase price of legal services

Original purchase price of telecommunication service

Reduced purchase price or lease price

Purchase price or lease price if coupon accepted

Purchase price if trade-in allowed on purchase of tangible personal property

Depreciated purchase price of tangible personal property

Purchase price if bundled purchase

Valuation by director

Part 2 – When Tax Is Payable

When tax is payable in respect of a purchase or lease

When tax is payable if tax not collected when consideration is paid or

becomes due

When tax is payable in respect of vehicles

When tax is payable in respect of gifts of boats or aircraft

Tax payment agreements in relation to tangible personal property and software

When consideration becomes due

Part 3 – Taxes in Relation to Tangible Personal Property

Division 1 – Rates of Tax

Rates of tax in relation to purchase price

Rates of tax in relation to lease price

Rates of tax in relation to gifts

Division 2 – Purchases of Tangible Personal Property

Tax on purchase

Division 3 – Leases of Tangible Personal Property

Application of this Division

Tax on leases

Tax on motor vehicle leased outside British Columbia and registered for use in British Columbia

Tax if leased property used in and outside British Columbia during rental period

Tax if balance of lease price becomes due on breach of lease

Additional tax on lease of passenger vehicle

Exemptions in relation to leases

Refund for leased property used outside British Columbia

Refund on motor vehicle leased outside British Columbia

Division 4 – Tangible Personal Property Brought into British Columbia

Definition

Application of this Division

Tax if tangible personal property brought into British Columbia for use

Tax on registration of vehicle brought into British Columbia

Tax if tangible personal property brought into British Columbia for temporary use

Tax if tangible personal property brought into British Columbia by non-residents

Exemption if less than minimum threshold use in British Columbia

Division 5 – Property Brought into British Columbia from Outside Canada

Application of this Division

Tax if property brought into British Columbia from outside Canada

Detention of tangible personal property

Tax payable to collection agent even though exemption claimed

Refund if property brought into British Columbia for temporary use

Division 6 – Conveyances Used Interjurisdictionally

Definitions

Tax if conveyance purchased in British Columbia for interjurisdictional use

Tax if sale and lease-back of conveyance

Tax if conveyance leased in British Columbia

Tax if conveyance brought into and used in British Columbia

Tax if change in use of conveyance acquired for resale

Estimate of hours or distance conveyance will travel

Adjustment of tax

Refund for conveyances used interjurisdictionally

Division 7 – Multijurisdictional Vehicles

Definitions

Tax if multijurisdictional vehicle licensed

When tax under

section 69 must be paid

Adjustment of tax under

section 69

Tax if vehicle ceases to be multijurisdictional

Liability of other persons

Refund or credit of tax if fleet licensing changed

Credit if tax previously paid

Refund or credit for trade-in vehicles

Refund for replacement vehicles

Refund for short term rental vehicles

Division 8 – Affixed Machinery and Improvements to Real Property

Contractor exempt from tax under

section 37 or 49

Tax on tangible personal property used to improve real property

Division 9 – Change in Use

Tax if change in use of property acquired for resale

Tax if property used for new purpose

Tax if change in use of property acquired for lease

Tax if change in use of resulting tangible personal property

Tax if change in use of prototype

Tax if change in use of property for which refund received under

taxation agreement

Tax if recording exhibited

Tax if leased tangible personal property becomes part of real property

Division 10 – Tangible Personal Property Acquired by Small Seller

Tax on acquisition of eligible tangible personal property

Eligible tangible personal property brought into British Columbia

Exemption in relation to eligible tangible personal property purchased from

small seller

Division 11 – Energy Products

Tax on purchase of energy product

Tax if energy product brought into British Columbia for use

Tax under this Division is additional tax

Exemptions in relation to energy products

Refund of excess if maximum tax paid

Reporting requirements in relation to energy products

Division 12 – Other Taxes in Relation to Tangible Personal Property

Liquor sold under special occasion licence

Tax on acquisition of exclusive product by independent sales contractor

Tax on gift of vehicle, boat or aircraft given in British Columbia

Tax on reusable containers

Tax on leased property occasionally supplied with operator

Tax on subsequent purchase or lease after refund

Part 4 – Taxes in Relation to Software

Application of this

Part

Tax on use of software

Tax on business use of software on device in British Columbia

Tax on business use of software on devices in and outside British Columbia

Adjustment of tax under

section 107

Tax if use of software changes

Tax if change in use of resulting software or tangible personal property

Tax if change in use of software for which refund received under

taxation agreement

Tax on acquisition of software by small seller

Exemptions in relation to software

Exemption in relation to software purchased from small seller

Part 5 – Taxes in Relation to Services

Division 1 – Services Related to Purchase

Definition

Tax if contract for property conversion related to purchase

Tax if contract for modification of purchased property

Exempt property

Division 2 – Related Services in Relation to Tangible Personal Property

Tax on purchase of related service provided in British Columbia

Tax if related service provided outside British Columbia

Exemptions from tax under this Division

Division 3 – Accommodation

Tax on accommodation

Tax on accommodation in designated accommodation area

Refund in relation to new designated accommodation area

Payment to designated recipient

Division 4 – Legal Services

Tax if legal services provided in British Columbia

Tax if legal services provided to British Columbia resident

Exemption in relation to legal aid

Deemed references if person providing legal services is partner or employee

Division 5 – Telecommunication Services

Tax on purchase of telecommunication service

Tax on provision of dedicated telecommunication services

Calculation if telecommunication only partly through dedicated system

Tax if motion picture exhibited

Exemption if telecommunication service purchased for resale

Division 6 – Taxable Service Acquired by Small Seller

Tax on acquisition of taxable service by small seller

Exemption in relation to taxable service acquired from small seller

Part 6 – Exemptions

Taxable component sold with non-taxable component for single price

Exemption for minimal sale of tangible personal property

Exemptions in relation to food

Exemption in relation to fuel

Exemptions in relation to industry and commerce

Exemptions for purchases or leases of tangible personal property intended for lease

Exemption in relation to recording of motion picture or audio production

Limit on exemptions

Evidence required to claim certain exemptions

Part 7 – Refunds

Division 1 – Refunds from Collectors

Refund if no obligation to pay

Refund if person fails to provide evidence at time of sale or lease

Prohibition – refund or credit already received

Refund if motor vehicle returned to collector

Refund or credit of purchase price

Refund or credit of lease price

Division 2 – Refunds from Director

Refund if no obligation to pay or collect

Refund if person fails to provide evidence at time of sale or lease

Motor vehicle returned to manufacturer

Refund in accordance with Nis g a'a Nation Taxation Agreement

Refund in accordance with treaty first nation tax treatment agreement

Refund by director if collector does not provide refund

Property shipped out of British Columbia

Refund or deduction for bad debts

Refund to collector

Refund to small seller

Refunds authorized or required under regulations

Prohibition – refund or credit already received

Division 3 – General

Definition

Claim for refund

Refund limits

Appropriation for refunds

Part 8 – Registration and Tax Collection

Division 1 – Registration

Registration

Vendors and lessors must be registered

Contractor must be registered if claiming exemption

Direct seller must be registered

Person located in Canada but outside British Columbia must be registered

Suspension or cancellation of registration

When registrant must notify director

Cancellation of registration if small seller

Registrant who is independent sales contractor

Prohibitions relating to use of registration number

Division 2 – Collection and Remittance of Tax

Collector is agent

Collection and remittance of tax by collector

Collection of tax by independent sales contractor

Collection of tax under

section 127

Collection of tax on liquor sold under special occasion licence

Duties of small seller

Tax collected deemed to be held in trust for government

Allowance for collection of tax

Collector's returns

Certificate required for bulk transaction

Prohibited advertising or other representations

Liability satisfied if tax collected

Payment first applied against tax payable

Agreement with federal government

Division 3 – Taxpayer Returns

When a person must file a taxpayer return

Taxpayer return

Part 9 – Administration and Enforcement

Division 1 – Inspections and Audits

Inspection and audit powers

Requirement to provide records

Demand for information

Division 2 – Assessments

Notice of assessment

Assessment of tax not remitted by collector

Assessment if tax not paid or remitted or if excess refund

Assessment period under sections 198 and 199

Anti-avoidance rule

Division 3 – Penalties and Interest

Failure to register

Failure to collect tax

Incorrect information

Failure to remit or pay tax

Interest on amount payable

Division 4 – Board Member's Liability

Board member's liability

Refunds when joint and several liability

Deemed board member

Assessment against board member

Part 10 – Appeals

Appeal to minister

Appeal to court

Irregularities

Tax collection not affected by pending appeal

If decision set aside or amount reduced or increased on appeal

Part 11 – Recovery of Amounts Owing

Collection bond

Court proceeding to recover amount owing

Summary proceedings

Alternative remedies

Attachment of funds

Lien

Responsibility of person having control of property

Notice of enforcement proceedings

Limitation period

Application for injunction

Part 12 – General

Designation of director

Delegation

Confidentiality

Service of notices

Part 13 – Offences and Penalties

Offences and penalties

Onus of proof

Evidence

Offence by corporation

Time limit on prosecution

Section 5 of Offence Act

Part 14 – Regulations

General regulation-making authority

Regulations in relation to tax payment agreements

Regulations in relation to tangible personal property

Regulations in relation to software

Regulations in relation to accommodation

Regulations in relation to exemptions

Regulations in relation to refunds

Regulations in relation to refunds and credits in relation to exclusive products

Regulations in relation to claims of solicitor-client privilege

Regulations specifying tax for coin-operated purchases

Other regulations

Part 15 – Amendments to Income Tax Act

247-254

Income Tax Act Amendments

Commencement

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Explanatory Note

This Bill does the following:

effective April 1, 2013, imposes tax, at various rates, on the following:

purchases of tangible personal property;

leases of tangible personal property;

tangible personal property brought or sent into or delivered in British Columbia;

tangible personal property used in British Columbia;

purchases of software, accommodation, legal services, tele-communication services, and services provided in relation to tangible personal property;

provides for exemptions from tax;

provides for refunds of tax;

establishes an administrative scheme for the administration and enforcement of the tax and an appeal mechanism that is similar to administrative schemes established under other taxation Acts;

makes consequential amendments to the Income Tax Act to end the Harmonized Sales Tax (HST) credit, to restore the former Sales Tax Credit and to change the basic personal amount tax credit.

Part 1 –

Interpretation

Division 1 –

Definitions and

Interpretation

Definitions

1 In this Act:

"accommodation" means

(

a) lodging in a hotel, motel, resort, boarding house, rooming house or bed and breakfast establishment, other than lodging excluded by regulation, and

(

b) lodging in a prescribed dwelling;

"affixed machinery" means machinery, equipment or apparatus that is used directly in the manufacture, production, processing, storage, handling, packaging, display, transportation, transmission or distribution of tangible personal property or the provision of software or a service and is affixed to, or installed in, a building, a structure or land so that it ceases to be personal property at common law, but does not include the following:

(

a) machinery, equipment or apparatus that is affixed to, or installed in, 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, for its useful life, on the site at which it is constructed,

(iii) does not run on rails or tracks, or does not otherwise move around on or from the site at which it is 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 to which it is affixed or in which it is installed;

"apparatus" means a complex machine or device designed to accomplish a specific purpose and consisting of an integrated assembly of parts each having a definite function;

"assessment" includes reassessment;

"associated corporation" means a corporation that is associated with another corporation within the meaning of

section 256 of the Income Tax Act (Canada);

"BC resident" means a person who

(

a) resides, ordinarily resides or carries on business in British Columbia, or

(

b) enters British Columbia with the intention of residing or carrying on business in British Columbia;

"board member" means

(

a) a member of a board of directors of a corporation, and

(

b) except in sections 165 (2) [claim for refund] and 233 [offence by corporation] , a person who is deemed to be a board member of a corporation under

section 209;

"boat" means a vessel or other craft that is designed for transporting or drawing on water persons or things, regardless of the method of propulsion or lack of method of propulsion;

"collection agent" means

(

a) a customs officer, and

(

b) if an agreement is in force between the Minister of National Revenue for Canada and the Canada Post Corporation providing for the collection of tax under Division 5 [Property Brought into British Columbia from Outside Canada] of

Part 3 by that corporation, a postal agent;

"collector" means the following:

(

a) a registrant;

(

b) a person who is required under

section 169 (1) to (4), 170, 171 or 172 to be registered under

section 168 but who is not registered;

(

c) a person referred to in

section 169 (5) during the first month in which the person is a vendor and while the person is not a registrant;

"collector's return" means a return filed under

section 186;

"conveyance" does not include a vehicle;

"customs officer" means an officer as defined in

section 2 of the Customs Act (Canada) who is employed at a customs office in British Columbia;

"dedicated telecommunication service" means the right, whether exercised or not, to send from British Columbia or receive in British Columbia one or more telecommunications by using a circuit, a communications channel, a partial communications channel or any other means of sending or receiving a telecommunication that is dedicated to the exclusive use of the purchaser of the service;

"dedicated telecommunication system" means a circuit, a communications channel, a partial communications channel or any other means of sending or receiving a telecommunication that is dedicated to the exclusive use of a person as a result of that person having purchased the right to send from British Columbia or receive in British Columbia one or more telecommunications by that circuit, communications channel, partial communications channel or other means of sending or receiving a telecommunication;

"designated accommodation area" means an area designated by regulation under

section 240 (1) (b);

"designated recipient" , in relation to a designated accommodation area, means the municipality, regional district or eligible entity designated by regulation for the purposes of the tax imposed under

section 123 (1) in the designated accommodation area;

"direct seller" means a person who

(

a) does not regularly make retail sales of exclusive products in British Columbia from an established commercial premises, and

(

b) sells exclusive products primarily to independent sales contractors;

"director" means a person designated by the minister to administer this Act;

"electronic device" means a device by which a person may

(

a) send or receive telecommunications,

(

b) download, view or access signs, signals, writing, images, sound or intelligence of any nature, or

(

c) send, receive, access or use software;

"eligible entity" means the following:

(

a) an entity that

(

i) is a not-for-profit business association,

(ii) has a place of business in a designated accommodation area, and

(iii) actively engages in tourism marketing, programs or projects in the designated accommodation area;

(

b) an entity that meets the prescribed qualifications;

"eligible tangible personal property" means tangible personal property other than the following:

(

a) a vehicle;

(

b) an aircraft;

(

c) a boat;

(

d) liquor;

(

e) other prescribed tangible personal property;

"energy product" means the following:

(

a) natural gas;

(

b) fuel oil, other than kerosene, used for the purposes of heating, cooling or raising steam;

(

c) propane in a vaporized form delivered

(

i) by a public utility, as defined in the Utilities Commission Act ,

(ii) by pipe, and

(iii) to purchasers at the place at which the propane will be used;

(

d) other prescribed tangible personal property;

"entry date" , in relation to tangible personal property, means the date on which the tangible personal property is first brought or sent into or delivered in British Columbia;

"exclusive product" means tangible personal property that

(

a) is acquired, manufactured or produced by a direct seller, and

(

b) is primarily offered to a purchaser at a retail sale by an independent sales contractor of the direct seller;

"fair market value" means the following:

(

a) in relation to tangible personal property, the price at which the legal and beneficial interest in the tangible personal property 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 and that must be determined

(

i) in a manner that includes any charges, costs or expenses referred to in

section 10 (2) (

e) and (f) [original purchase price of tangible personal property] , and

(ii) for the purposes of sections 49 and 100, in a manner that also includes any costs or expenses referred to in

section 10 (2) (

f) that were incurred by the person who provided the gift;

(

b) in relation to software, the price at which the legal and beneficial interest in the software would, if unencumbered, be conveyed or provided 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;

(

c) in relation to a taxable service, the price at which the legal and beneficial interest in the taxable service would, if unencumbered, be provided 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;

"family residential dwelling unit" does not include

(

a) a recreational vehicle,

(

b) a travel trailer, including a Park Model travel trailer manufactured to Canadian Standards Association Standard Z240,

(

c) a slide-on camper, a chassis-mounted camper or other similar camper, or

(

d) a prescribed structure, vehicle or component of a vehicle used for a prescribed use;

"fleet licensing date" , in respect of vehicles licensed in a calendar year as part of a fleet, means the first date in that calendar year that the fleet vehicles are licensed as such;

"fuel oil" means any liquid fuel containing any derivative of coal, petroleum or natural gas, but does not include the following:

(

a) gasoline;

(

b) propane;

(

c) butane;

(

d) ethane;

(

e) pentanes plus, as defined in

Schedule 1 of the Carbon Tax Act ;

"improvement to real property" does not include affixed machinery;

"independent sales contractor" , in relation to a direct seller, means an individual who

(

a) has a right to purchase exclusive products from the direct seller or from another independent sales contractor of the direct seller for the purpose of resale,

(

b) is not an agent or employee of the direct seller,

(

c) purchases exclusive products referred to in paragraph (

a) for resale or for the individual's own use or consumption, and

(

d) sells or offers to sell the exclusive products to a purchaser only

(

i) temporarily at an established business premises,

(ii) at premises that are not a business premises, or

(iii) at the individual's private residence;

"lease" , except in

section 33 (2) [when consideration becomes due] , means an agreement under which a person is given a right to use tangible personal property, but does not include

(

a) an agreement under which the person supplying the tangible personal property supplies a person to operate the property, or

(

b) the leasing of furnishings if

(

i) the furnishings are leased under an agreement to rent a house, apartment or other residential accommodation, and

(ii) the rent payments under the agreement are not divided into separate amounts for the accommodation and the furnishings;

"lease price" means the lease price under Division 2 [Purchase Price and Lease Price] ;

"legal services" means

(

a) services that come within the meaning of the practice of law under the Legal Profession Act ,

(

b) services described in

section 18 of the Notaries Act , and

(

c) legally related services prescribed as legal services,

but does not include services provided by a person to the person's employer in the course of employment;

"lessee" , except in

section 33 (2) [when consideration becomes due] , means a person who leases, in or outside British Columbia, tangible personal property that, during a rental period,

(

a) is for use or is used by the person in British Columbia,

(

b) is for use or is used in British Columbia by another person at the first person's expense,

(

c) is for use or is used in British Columbia by a principal for whom the first person acts as agent, or

(

d) is for use or is used in British Columbia by another person at the expense of a principal for whom the first person acts as agent;

"lessor" means a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who, in the ordinary course of the person's business in British Columbia, leases or offers to lease tangible personal property to a lessee in British Columbia;

"licensing date" , in respect of a vehicle that is licensed as part of a fleet, means the fleet licensing date;

"liquor" has the same meaning as in the Liquor Control and Licensing Act ;

"manufactured home" means a manufactured mobile home or a manufactured modular home;

"manufactured mobile home" means

(

a) a mobile home manufactured to Canadian Standards Association Standard Z240, or

(

b) any other mobile home that is similar in design and construction to a mobile home constructed to Canadian Standards Association Standard Z240,

if the home is in all essential features completely constructed before delivery from the factory;

"manufactured modular home" means

(

a) a modular home manufactured to Canadian Standards Association Standard A277, or

(

b) any other modular home built to a standard required by the National Building Code of Canada and qualifying for Canada Mortgage and Housing Corporation financing,

if each module is in all essential features completely constructed before delivery from the factory;

"month" means a calendar month;

"motor vehicle" has the same meaning as in the Motor Vehicle Act ;

"multijurisdictional vehicle" means a vehicle in respect of which tax is payable under

section 69 (1);

"non-taxable component" means property, software or a service that, if purchased separately from a taxable component, would not be subject to tax under this Act or would be exempt from tax under this Act;

"original lease price" , in relation to tangible personal property, means the lease price of the tangible personal property under

section 13;

"original purchase price" means the following:

(

a) in relation to tangible personal property, the purchase price of the tangible personal property under

section 10;

(

b) in relation to software, the purchase price of the software under

section 15;

(

c) in relation to a taxable service, the purchase price of the taxable service under

section 18 [related service] , 19 [accommodation] , 20 [legal services] or 21 [telecommunication service] ;

"passenger vehicle" means

(

a) a motor vehicle designed primarily as a means of transport for individuals, other than a motor vehicle excluded by regulation, and

(

b) a prescribed vehicle;

"postal agent" means the Canada Post Corporation established under the Canada Post Corporation Act and its officers, employees and agents;

"promotional distribution" means the provision by a person to another person of tangible personal property or software

(

a) that is provided for one or more of the following purposes:

(

i) to describe, or to promote or encourage the purchase, use or consumption of, tangible personal property, software, services or real property;

(ii) to provide or distribute to a person a catalogue, directory, listing or compilation of persons, places, prices, services, commodities or places of business in respect of the purchase, use or consumption of tangible personal property, software, services or real property;

(iii) a prescribed purpose, and

(

b) for which the purchase price paid by the person providing the tangible personal property or software

(

i) exceeds the amount of the payment specifically made for that tangible personal property or software by the person to whom it is provided, or

(ii) is not specifically charged to and required to be paid by the person to whom that tangible personal property or software is provided;

"promotional distributor" means a person who provides, by way of promotional distribution to another person, tangible personal property or software;

"prototype" means the first full-scale functional form of a new type or a new construction of tangible personal property, but does not include software or prescribed tangible personal property;

"purchase price" means the purchase price under Division 2 [Purchase Price and Lease Price] ;

"purchaser" means the following:

(

a) in relation to tangible personal property, a person who acquires tangible personal property at a sale

(

i) for the person's own use or consumption,

(ii) for use or consumption by another person at the expense of the person acquiring the property,

(iii) for use or consumption by a principal for whom the person acquiring the property acts as agent, or

(iv) for use or consumption by another person at the expense of a principal for whom the person acquiring the property acts as agent;

(

b) in relation to software, a person who agrees to pay or is otherwise obliged to pay consideration for software

(

i) provided to the person for the person's own use or benefit,

(ii) provided to another recipient for that recipient's use or benefit at the person's expense,

(iii) provided to a principal for whom the person acts as agent for the use or benefit of that principal, or

(iv) provided to another recipient for that recipient's use or benefit at the expense of a principal for whom the person acts as agent;

(

c) in relation to a related service, legal services or a telecommunication service, a person who agrees to pay or is otherwise obliged to pay consideration for a related service, legal services or a telecommunication service

(

i) provided to the person for the person's own use or benefit,

(ii) provided to another recipient for that recipient's use or benefit at the person's expense,

(iii) provided to a principal for whom the person acts as agent for the use or benefit of that principal, or

(iv) provided to another recipient for that recipient's use or benefit at the expense of a principal for whom the person acts as agent;

(

d) in relation to accommodation, a person who agrees to pay or is otherwise obliged to pay consideration for accommodation

(

i) provided to the person for the person's own use or benefit,

(ii) provided to another recipient for that recipient's use or benefit at the person's expense,

(iii) provided to a principal for whom the person acts as agent for the use or benefit of that principal,

(iv) provided to another recipient for that recipient's use or benefit at the expense of a principal for whom the person acts as agent, or

(

v) if the person is a tourism agent and the accommodation is for inclusion in a tourism service provided or to be provided by the tourism agent;

"registered charity" has the same meaning as in

section 248 (1) of the Income Tax Act (Canada);

"registrant" means a person who is registered under

section 168 and whose registration is not suspended or cancelled;

"registration number" means a registration number issued under

section 168 (3);

"related individual" has the same meaning as in the Property Transfer Tax Act ;

"related service" , except in relation to legally related services, means any service provided in relation to tangible personal property, but does not include a service

(

a) provided to install tangible personal property that will become an improvement to real property on installation, or

(

b) provided by a person to the person's employer in the course of employment;

"reporting period" , in relation to a collector or a person who enters into an agreement with the director under

section 32, means the period specified by the director;

"resident taxpayer" means an individual who

(

a) resides, ordinarily resides or carries on business in British Columbia, and

(

b) brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property for use or consumption

(

i) by the individual,

(ii) by another individual at the first individual's expense,

(iii) by another individual for whom the first individual acts as agent, or

(iv) by another individual at the expense of a principal for whom the first individual acts as agent;

"retail sale" means the following:

(

a) in relation to tangible personal property, a sale of tangible personal property to a purchaser for purposes of use or consumption and not for resale;

(

b) in relation to software, a sale of software to a purchaser for purposes of use or benefit and not for resale;

(

c) in relation to a taxable service, a sale of the taxable service to a purchaser for purposes of use or benefit and not for resale;

"reusable container" means

(

a) a container in which a product is packaged or delivered, or

(

b) a pallet on which a product is packaged or delivered,

and that is capable of being returned and reused;

"sale" includes the following:

(

a) a conditional sale;

(

b) a sale on credit or for which the price is payable by installments;

(

c) an exchange;

(

d) barter;

(

e) a transfer, conditional or otherwise, of title to or possession of tangible personal property under a contract;

(

f) a delivery of tangible personal property at a price or other consideration;

(

g) a transfer of ownership of, title to or possession of tangible personal property

(

i) given as security, by foreclosure or by repossession under lien note or conditional sale contract, whether voluntary or otherwise, or by order of a court, or by any other means by which security may be realized, or

(ii) in the process of winding up, liquidating or dissolving a corporation;

(

h) a provision, by way of promotional distribution, of tangible personal property;

(

i) a provision of software at a price or other consideration;

(

j) a provision of a taxable service at a price or other consideration,

but does not include the following:

(

k) the provision of tangible personal property, software or a telecommunications service that, in prescribed circumstances, is merely incidental to a contract for the provision of services that are not subject to tax under this Act;

(

l) the provision of tangible personal property by a contractor for the purposes of fulfilling a contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property;

(

m) except in prescribed circumstances, the provision by a registered charity, or a person acting on behalf of a registered charity, of tangible personal property of nominal value as a gift in return for a donation, all of which is provided to the registered charity;

"short term rental vehicle" means a multijurisdictional vehicle that, during a vehicle licence period,

(

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);

"small seller" means a person

(

a) who is located in British Columbia,

(

b) who sells eligible tangible personal property or software or provides taxable services at a sale in British Columbia,

(

c) who does not regularly

(

i) make retail sales of eligible tangible personal property or software in British Columbia from an established commercial premises, or

(ii) provide a taxable service in British Columbia from an established commercial premises,

(

d) who does not maintain an established business premises in British Columbia,

(

e) whose gross revenue in the previous 12 months from all retail sales of eligible tangible personal property and software and all provisions of a taxable service is $10 000 or less,

(

f) whose reasonable estimate of gross revenue in the 12 months after the 12 months referred to in paragraph (

e) from all sales of eligible tangible personal property and software and all provisions of a taxable service is $10 000 or less,

(

g) who is not a lessor, an independent sales contractor, or a vendor within the meaning of paragraph (

d) of the definition of "vendor", and

(

h) who is not registered under

section 168 and is not required under

section 169, 170, 171 or 172 to be registered under

section 168;

"software" means the following:

(

a) a software program that is delivered or accessed by any means;

(

b) the right, whether exercised or not, to use a software program that is delivered or accessed by any means;

"substantially" means 90% or more;

"tangible personal property" means the following:

(

a) personal property that can be seen, weighed, measured, felt or touched, or that is in any other way perceptible to the senses, and includes natural or manufactured gas;

(

b) electricity;

(

c) heat;

(

d) affixed machinery;

(

e) an improvement to real property or part of an improvement to real property that is removed from the site at which it is affixed or installed, while it is removed from that site;

"tax" , in relation to tax under this Act, includes

(

a) an amount a person must pay to the government under

section 187 (2) [certificate required for bulk transaction] , and

(

b) an amount for which a person is personally liable to the government under

section 222 [responsibility of person having control of property] ;

"taxable component" means tangible personal property, software or a taxable service that would be subject to tax under this Act if purchased separately from other property or services;

"taxable service" means any of the following:

(

a) services described in

section 116 (2) (b) [tax if contract for property conversion related to purchase] that are provided under the contract referred to in that provision;

(

b) services described in

section 117 (2) (b) [tax if contract for modification of purchased property] that are provided under the contract referred to in

section 117 (2) (a) (

i) or (ii);

(

c) a related service;

(

d) accommodation;

(

e) legal services;

(

f) a telecommunication service;

"taxpayer return" means a taxpayer return under

section 193;

"telecommunication" includes any transmission, emission or reception of signs, signals, writing, images, sound or intelligence of any nature by wire, fibre optic cable, radio, satellite or other electromagnetic or laser-based system;

"telecommunication service" means any of the following:

(

a) the right, whether exercised or not, to send or receive one or more telecommunications by means of an electronic device that is ordinarily situated in British Columbia;

(

b) the sending or receiving of a telecommunication by means of an electronic device that is ordinarily situated in British Columbia;

(

c) a dedicated telecommunication service;

(

d) the right, whether exercised or not, to download, view or access, by means of a telecommunication effected through an electronic device that is ordinarily situated in British Columbia, signs, signals, writing, images, sound or intelligence of any nature other than software;

"tourism agent" means a person who

(

a) purchases accommodation from a vendor, and

(

b) for payment, makes all or any part of that accommodation available for use by one or more persons as part of a tourism service;

"trailer" has the same meaning as in the Motor Vehicle Act ;

"use" ,

(

a) in relation to tangible personal property, includes the following:

(

i) the exercise of any right or power over tangible personal property incidental to the ownership of it, other than the sale of the property;

(ii) the leasing by a person of tangible personal property to another person;

(iii) the storing, keeping or retaining of tangible personal property for any purpose;

(iv) the provision of tangible personal property by way of promotional distribution;

(

v) the utilization of tangible personal property by the person to whom the tangible personal property is provided by way of promotional distribution;

(vi) the employment or utilization of tangible personal property by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person;

(vii) the consumption, employment or utilization of tangible personal property by a business in the course of providing a service;

(viii) the consumption, employment or utilization of tangible personal property for the purposes of fulfilling a contract for the supply and installation of affixed machinery or improvements to real property;

(ix) the provision by a registered charity of tangible personal property of nominal value as a gift in return for a donation,

but does not include the following:

(

x) the exercise of a right or power over or the storing, keeping or retaining of tangible personal property that was brought into British Columbia for the sole purpose of subsequently transporting it out of British Columbia for use outside British Columbia;

(xi) the exercise of a right or power over or the storing, keeping or retaining of tangible personal property, other than reusable containers, that was brought into British Columbia for the sole purpose of being processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property that is to be transported outside British Columbia for use solely outside British Columbia;

(xii) the storing, keeping or retaining of tangible personal property that was brought into British Columbia for the sole purpose of being repaired and, after repair, being transported outside British Columbia for use outside British Columbia;

(xiii) the storing, keeping or retaining of tangible personal property for the sole purpose of resale,

(

b) in relation to software, includes the following:

(

i) the sending, receiving, downloading, viewing or accessing of software by any means, including if possession of the software is maintained by the provider of the software or another person;

(ii) the exercise of any right or power over software incidental to the ownership of it;

(iii) the storing, keeping or retaining of software for any purpose;

(iv) the holding of a right to use software;

(

v) the provision of software by way of promotional distribution;

(vi) the utilization of software by the person to whom the software is provided by way of promotional distribution;

(vii) the employment or utilization of software by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person;

(viii) the employment or utilization of software by a business in the course of providing a service,

(

c) in relation to a taxable service, includes the employment or utilization of a taxable service by a business in the course of providing a service,

(

d) in relation to a related service, includes the provision by a person of a related service to another person,

(

e) in relation to accommodation, includes the following:

(

i) the exercise of any right or power over accommodation incidental to the ownership of it, other than the sale of the accommodation;

(ii) the employment or utilization of accommodation by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person, and

(

f) in relation to a telecommunication service, includes the following:

(

i) the sending, receiving, downloading, viewing or accessing of one or more signs, signals, writing, images, sound or intelligence of any nature by any means, including if possession of the telecommunication or telecommunication service is maintained by the provider of the telecommunication service or another person;

(ii) in relation to paragraph (

d) of the definition of "telecommunication service", the exercise of any right or power over the right to send, receive, download, view or access one or more signs, signals, writing, images, sound or intelligence of any nature incidental to the right;

(iii) the provision by a person of a telecommunication service to another person;

(iv) the storing, keeping or retaining of a telecommunication or telecommunication service for any purpose;

(

v) the holding of a right to send, receive, download, view or access one or more signs, signals, writing, images, sound or intelligence of any nature;

(vi) the employment or utilization of a telecommunication service by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person;

"user" means the following:

(

a) a person who utilizes in British Columbia tangible personal property

(

i) for the person's own use or consumption,

(ii) for the use or consumption of another person at the expense of the person utilizing the property,

(iii) for the use or consumption of a principal for whom the person utilizing the property acts as agent, or

(iv) for the use or consumption of another person at the expense of a principal for whom the person utilizing the property acts as agent;

(

b) a person who utilizes in British Columbia software

(

i) for the person's own use or benefit,

(ii) for the use or benefit of another person at the expense of the person utilizing the software,

(iii) for the use or benefit of a principal for whom the person utilizing the software acts as agent, or

(iv) for the use or benefit of another person at the expense of a principal for whom the person utilizing the software acts as agent;

(

c) a promotional distributor who provides tangible personal property or software by way of promotional distribution;

"vehicle" has the same meaning as in the Motor Vehicle Act ;

"vehicle licence period" , in respect of a vehicle, means the period beginning on a date on which a licence is issued for the vehicle and ending on the expiry date for the licence established on that licensing date;

"vehicle registration legislation" means the Commercial Transport Act , Motor Vehicle Act or Motor Vehicle (All Terrain) Act ;

"vendor" means the following:

(

a) in relation to tangible personal property, a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who, in the ordinary course of the person's business, in British Columbia, sells, offers to sell, provides or offers to provide tangible personal property to a purchaser at a retail sale in British Columbia, but does not include

(

i) a small seller, or

(ii) an independent sales contractor, but only in relation to the sale of exclusive products to a purchaser at a retail sale in British Columbia;

(

b) in relation to software, a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who, in the ordinary course of the person's business, in British Columbia, sells, offers to sell, provides or offers to provide software to a purchaser at a retail sale in British Columbia, but does not include a small seller;

(

c) in relation to a taxable service other than accommodation, a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who, in the ordinary course of the person's business, in British Columbia, sells, offers to sell, provides or offers to provide a taxable service to a purchaser at a retail sale in British Columbia, but does not include a small seller;

(

d) in relation to accommodation, a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who, in the ordinary course of the person's business, in British Columbia, sells, offers to sell, provides or offers to provide accommodation to a purchaser at a retail sale in British Columbia, but does not include a tourism agent.

Proof of residence in British Columbia

2 For the purposes of this Act, any of the following is proof, in the absence of evidence to the contrary, that an individual resides in British Columbia:

(

a) the receipt by the individual of a grant under

section 2 of the Home Owner Grant Act ;

(

b) the receipt by a person of a grant in respect of the individual's residence and for the individual's benefit under

section 3, 4 or 5 of the Home Owner Grant Act ;

(

c) the enrollment of the individual as a beneficiary under the medical services plan continued under the Medicare Protection Act .

Deemed expenses of a person

(1) For the purposes of this Act, a person who, for the use or consumption by another person, acquires at a sale, leases as lessee, utilizes, brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property

(

a) is deemed to have done so at the first person's expense, or

(

b) if the first person acts on behalf of or as an agent for a principal, is deemed to have done so at the expense of the principal,

unless the other person acquires the tangible personal property at a sale or is given the right to use the tangible personal property under a lease.

(2) For the purposes of this Act, a person who, for the use or benefit of another person, agrees to pay or is otherwise obliged to pay consideration for software or a taxable service

(

a) is deemed to have done so at the first person's expense, or

(

b) if the first person acts on behalf of or as an agent for a principal, is deemed to have done so at the expense of the principal,

unless the other person agrees to pay or is otherwise obliged to pay consideration for the software or taxable service.

Transactions deemed to be transfer of possession

(1) For the purposes of the definition of "sale", the director may determine that a transaction in relation to tangible personal property was in place of a transfer of title, exchange or barter.

(2) If the director makes a determination under subsection (1), for the purposes of the definition of "sale", the transaction is deemed to be a transfer of possession of the tangible personal property under a contract.

Carrying on business in British Columbia

5 For the purposes of this Act, a person is deemed to be carrying on business in British Columbia if

(

a) the person's name, or any name under which the person carries on business, is listed in a telephone directory

(

i) for any part of British Columbia, and

(ii) in which an address or telephone number in British Columbia is given for the person,

(

b) the person's name, or any name under which the person carries on business, appears or is announced in any advertisement in which an address or telephone number in British Columbia is given for the person, or

(

c) the person has, in British Columbia,

(

i) employees or other representatives, or

(ii) a warehouse, office or place of business.

Deemed use of tangible personal property

or software in the course of business

6 For the purposes of this Act, a person is deemed to use tangible personal property or software in the course of the person's business if

(

a) the tangible personal property or software is used

(

i) by another person at the first person's expense,

(ii) by a principal for whom the first person acts as agent, or

(iii) by another person at the expense of a principal for whom the first person acts as agent, and

(

b) the use by the other person referred to in paragraph (

a) is intended to assist the business of the first person referred to in that paragraph.

How tax is to be calculated

(1) The tax imposed under this Act must be

(

a) calculated separately on every sale or lease of tangible personal property or every sale of software or a taxable service, and

(

b) computed to the nearest cent, with 1/2 cent counted as one cent.

(2) For the purposes of subsection (1) (a), if 2 or more items of tangible personal property are sold or leased on the same occasion or as part of one transaction and the items are subject to tax imposed under this Act at the same rate, the total of the sales or leases is deemed to be one sale or lease.

(3) For the purposes of subsection (1) (a), if 2 or more items of software are sold on the same occasion or as part of one transaction and the items are subject to tax imposed under this Act at the same rate, the total of the sales is deemed to be one sale.

(4) For the purposes of subsection (1) (a), if 2 or more taxable services are sold on the same occasion or as part of one transaction and the taxable services are subject to tax imposed under this Act at the same rate, the total of the sales is deemed to be one sale.

Liability of other persons

(1) If there is more than one purchaser of tangible personal property, software or a taxable service subject to tax under this Act, each purchaser is jointly and severally liable for the tax.

(2) If there is more than one lessee of tangible personal property subject to tax under this Act, each lessee is jointly and severally liable for the tax.

Division 2 – Purchase Price and Lease Price

Purchase price of tangible personal property

9 For the purposes of this Act, the purchase price of tangible personal property is as follows:

(

a) subject to paragraphs (

b) to (e), the purchase price of the tangible personal property under

section 10 [original purchase price of tangible personal property] ;

(

b) subject to paragraphs (

c) to (e), if

section 22 (1) [reduced purchase price] applies in respect of the purchase, the purchase price of the tangible personal property under that section;

(

c) subject to paragraphs (

d) and (e), if

section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the tangible personal property under that section;

(

d) subject to paragraph (e), if

section 24 [purchase price if trade-in allowed on purchase of tangible personal property] applies in respect of the sale, the purchase price of the tangible personal property under that section;

(

e) if

section 25 [depreciated purchase price of tangible personal property] applies in respect of the tangible personal property, the purchase price of the tangible personal property under that section.

Original purchase price of tangible personal property

(1) For the purposes of this Act, the purchase price of tangible personal property is equal to the total value of the consideration that the seller or person from whom the tangible personal property passes accepts as the price or on account of the price of the tangible personal property covered by the sale.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of tangible personal property includes the following:

(

a) a price in money accepted by the seller or person from whom the tangible personal property passes as the price or on account of the price of the tangible personal property covered by the sale;

(

b) the value of services accepted by the seller or person from whom the tangible personal property passes as the price or on account of the price of the tangible personal property covered by the sale;

(

c) the value of the tangible personal property or software exchanged or acquired by the seller or person from whom the tangible personal property passes as the price or on account of the price of the tangible personal property covered by the sale;

(

d) in the case of tangible personal property that is repossessed, the value of the tangible personal property;

(

e) any charges for

(

i) transportation or delivery of the tangible personal property sold, or

(ii) interest, finance, service, customs and excise charges in relation to the tangible personal property sold

that are incurred at or before the time that title to the tangible personal property covered by the sale passes under that sale, whether or not those charges are shown separately on any record of the sale, but does not include interest charges on a conditional sale contract if the amount of those charges is segregated on the record of sale or is billed separately to the purchaser, and is payable over the term of the contract;

(

f) if the tangible personal property is purchased, manufactured, processed or otherwise acquired outside British Columbia and subsequently brought or sent into or received in British Columbia for use or consumption in British Columbia, the costs and expenses incurred by the user before the use of the tangible personal property in British Columbia, including

(

i) costs and expenses for materials, labour and other manufacturing and processing costs and expenses, and

(ii) costs and expenses for service, customs, excise and transportation;

(

g) in relation to the purchase of ready-mixed concrete that is to be delivered by or on behalf of the seller to the place where the purchaser intends to use the ready-mixed concrete, the total value of the consideration that is payable by the purchaser to have the ready-mixed concrete delivered to that place;

(

h) any charge, including a royalty or licence fee, relating to

(

i) the use of the tangible personal property, or

(ii) the use of knowledge required to use the tangible personal property,

whether incurred before or after the time that title to the tangible personal property covered by the sale passes under that sale.

Purchase price of tangible personal property related to

affixed machinery and improvements to real property

11 For the purposes of

section 80 (2), the purchase price of tangible personal property is equal to the greater of the following:

(

a) the purchase price payable by the contractor for the tangible personal property referred to in

section 79 (1) if

section 79 did not apply in relation to the tangible personal property;

(

b) the purchase price of the tangible personal property set out in the agreement referred to in

section 79 (1) (

c) or (2) (c).

Lease price of tangible personal property

12 For the purposes of this Act, the lease price of tangible personal property, in relation to a rental period under the lease, is as follows:

(

a) subject to paragraphs (

b) and (c), the lease price of the tangible personal property under

section 13 for the rental period;

(

b) subject to paragraph (c), if

section 22 (2) [reduced lease price] applies in respect of the lease, the lease price of the tangible personal property under that section;

(

c) if

section 23 [lease price if coupon accepted] applies in respect of the lease, the lease price of the tangible personal property under that section.

Original lease price of tangible personal property

(1) For the purposes of this Act, the lease price of tangible personal property, in relation to a rental period under the lease, is equal to the total value of the consideration accepted by the lessor for the rental period for the right to use the tangible personal property.

(2) Without limiting subsection (1), for the purposes of this Act, the lease price of tangible personal property, in relation to a rental period, includes the following accepted by the lessor during the rental period:

(

a) any payment or consideration or part of a payment or consideration that is, or is expressed to be, a licence fee or royalty fee;

(

b) any payment or consideration, in addition to those made for rental periods, by a lessee to a person granting a lease for the right to use the tangible personal property, including a down payment;

(

c) any payment or consideration, including a membership fee, that is in addition to payments or consideration for rental periods, a substantial benefit of which is a reduction in the lease price of the tangible personal property;

(

d) any payment or consideration, or part of a payment or consideration, that is based or calculated on a measure of the use made by the lessee of the tangible personal property;

(

e) if the tangible personal property is leased outside British Columbia and subsequently brought or sent into or received in British Columbia for use in British Columbia, the charges to the lessee for customs, excise, transportation, service and other similar costs incurred by the lessee before the lessee uses the tangible personal property in British Columbia;

(

f) in respect of a transaction that is in part a lease of tangible personal property under which the lessee is given the right or authority to exhibit a motion picture to others, the total value of the consideration that

(

i) is paid by the lessee to the person with whom the exhibitor entered into the transaction, and

(ii) is not otherwise included under this

section in the lease price of the tangible personal property.

(3) Without limiting subsection (1), if an amount of payment, consideration or charge referred to in subsection (1) or (2) is not attributable to a rental period, for the purposes of this Act, the amount is to be attributed equally across all rental periods under the lease.

Purchase price of software

14 For the purposes of this Act, the purchase price of software is as follows:

(

a) subject to paragraphs (

b) and (c), the purchase price of the software under

section 15;

(

b) subject to paragraph (c), if

section 22 (3) [reduced purchase price] applies in respect of the purchase, the purchase price of the software under that section;

(

c) if

section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the software under that section.

Original purchase price of software

(1) For the purposes of this Act, the purchase price of software is equal to the total value of the consideration accepted by the seller or person from whom the software is acquired as the price or on account of the price of the software.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of software includes the following accepted by the seller or person from whom the software is acquired as the price or on account of the price of the software:

(

a) a price in money;

(

b) the value of services rendered;

(

c) the value of the software or tangible personal property exchanged, acquired or repossessed;

(

d) any charge, including a royalty or licence fee, relating to

(

i) the use of the software, or

(ii) the use of knowledge required to use the software,

whether incurred before or after the time that the software is acquired;

(

e) any payment or consideration or part of a payment or consideration that is, or is expressed to be, a down payment;

(

f) any payment or consideration, including a membership fee, a substantial benefit of which is a reduction in the purchase price of the software;

(

g) any payment or consideration, or part of a payment or consideration, that is based or calculated on a measure of the use made of the software.

Purchase price of tangible personal property or software

acquired or received by promotional distribution

(1) For the purposes of this Act, in relation to tangible personal property or software that is to be provided by way of promotional distribution by a promotional distributor, the promotional distributor's purchase price of the tangible personal property or software is equal to the amount by which the purchase price of the tangible personal property or software paid by the promotional distributor exceeds the amount of consideration specifically provided for the tangible personal property or software by the person to whom that tangible personal property or software is provided.

(2) For the purposes of this Act, in relation to tangible personal property or software that is received by way of promotional distribution, the recipient's purchase price of the tangible personal property or software is equal to the amount of any consideration specifically provided for the tangible personal property or software by the person to whom that tangible personal property or software is provided.

Purchase price of taxable service

17 For the purposes of this Act, the purchase price of a taxable service is as follows:

(

a) subject to paragraphs (

b) and (c), the purchase price of the taxable service under

section 18 [related service] , 19 [accommodation] , 20 [legal services] or 21 [telecommunication service] ;

(

b) subject to paragraph (c), if

section 22 (4) [reduced purchase price] applies in respect of the purchase, the purchase price of the taxable service under that section;

(

c) if

section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the taxable service under that section.

Original purchase price of related service

(1) For the purposes of this Act, the purchase price of a related service is equal to the total value of the consideration accepted by the seller of the related service or person from whom the related service is acquired as the price or on account of the price of the related service.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of a related service includes a price in money and the value of services rendered.

Original purchase price of accommodation

(1) For the purposes of this Act, the purchase price of accommodation is equal to the total value of the consideration accepted by the seller of the accommodation or person from whom the accommodation is acquired as the price or on account of the price of the accommodation.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of accommodation includes a price in money and the value of services rendered.

(3) Despite subsection (1), if accommodation is purchased as part of a combination of accommodation, meals and other prescribed services, the purchase price of the accommodation is the amount attributed to the purchase of the accommodation in accordance with the regulations.

Original purchase price of legal services

(1) For the purposes of this Act, the purchase price of legal services is equal to the total value of the consideration provided by the purchaser for the provision of the legal services.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of legal services includes

(

a) the fees and charges, other than those prescribed as excluded,

(

b) disbursements for legal research or secretarial and other support services, and

(

c) other prescribed disbursements

that are billed or otherwise charged to a purchaser for or in relation to the legal services.

Original purchase price of telecommunication service

(1) For the purposes of this Act, the purchase price of a telecommunication service is equal to the total value of the consideration accepted by the seller or person from whom the telecommunication service is acquired as the price or on account of the price of the telecommunication service.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of a telecommunication service includes the following:

(

a) sign-up charges;

(

b) access charges;

(

c) airtime charges;

(

d) usage charges;

(

e) service charges;

(

f) any charge, including a royalty or licence fee, relating to

(

i) the use of the telecommunication service, or

(ii) the use of knowledge required to use the telecommunication service,

whether incurred before or after the time that the telecommunication service is acquired;

(

g) in respect of a transaction that is in part an acquisition of the right or authority to exhibit a motion picture to others, the total value of the consideration that

(

i) is paid to the person with whom the exhibitor entered into the transaction, and

(ii) is not otherwise included under this

section in the purchase price of the telecommunication service.

Reduced purchase price or lease price

(1) If, at or before the time of sale,

(

a) a seller offers to a purchaser a reduction in the original purchase price of tangible personal property, and

(

b) the conditions of the reduction, if any, have been met by the purchaser,

for the purposes of this Act, the purchase price of the tangible personal property is equal to the original purchase price of the tangible personal property less the amount of the reduction provided by the seller.

(2) If, at or before the time a lease is entered into,

(

a) a person offers to a lessee a reduction in the original lease price of tangible personal property, and

(

b) the conditions of the reduction, if any, have been met by the lessee,

for the purposes of this Act, the lease price of the tangible personal property is equal to the original lease price of the tangible personal property less the amount of the reduction provided by the person.

(3) If, at or before the time of sale,

(

a) a seller offers to a purchaser a reduction in the original purchase price of software, and

(

b) the conditions of the reduction, if any, have been met by the purchaser,

for the purposes of this Act, the purchase price of the software is equal to the original purchase price of the software less the amount of the reduction provided by the seller.

(4) If, at or before the time of sale,

(

a) a seller offers to a purchaser a reduction in the original purchase price of a taxable service, and

(

b) the conditions of the reduction, if any, have been met by the purchaser,

for the purposes of this Act, the purchase price of the taxable service is equal to the original purchase price of the taxable service less the amount of the reduction provided by the seller.

Purchase price or lease price if coupon accepted

(1) In this section:

"coupon" does not include a gift certificate;

"initial price" means the following:

(

a) in relation to a purchase of tangible personal property, the purchase price of the tangible personal property under

section 9 (

a) or (b);

(

b) in relation to a lease of tangible personal property, the lease price of the tangible personal property under

section 12 (

a) or (b);

(

c) in relation to software, the purchase price of the software under

section 14 (

a) or (b);

(

d) in relation to a taxable service, the purchase price of the taxable service under

section 17 (

a) or (b).

(2) If a seller or a person leasing tangible personal property to a lessee accepts, as consideration for a purchase or lease of tangible personal property or a purchase of software or a taxable service, a coupon that entitles the purchaser or lessee to a reduction in the price of the purchase or lease of the tangible personal property or the price of the software or taxable service equal to an amount specified in or provided for by the coupon, and the seller or the person leasing tangible personal property can reasonably expect to be paid an amount for the redemption of the coupon by another person, for the purposes of this Act,

(

a) the purchase price of the tangible personal property, software or taxable service is equal to the initial price of the tangible personal property, software or taxable service as if the coupon were not accepted, and

(

b) the lease price of the tangible personal property is equal to the initial price for the lease of the tangible personal property as if the coupon were not accepted.

(3) Despite subsection (2), if a seller accepts, as consideration for a purchase of a motor vehicle, a coupon from the manufacturer of the motor vehicle that entitles the purchaser to a reduction in the price of the motor vehicle equal to an amount specified in or provided for by the coupon, for the purposes of this Act, the purchase price of the motor vehicle is equal to the initial price of the motor vehicle less the amount specified in or provided for by the coupon.

(4) If a seller or a person leasing tangible personal property to a lessee accepts, as consideration for a purchase or lease of tangible personal property or a purchase of software or a taxable service, a coupon that entitles the purchaser or lessee to a reduction in the price of the purchase or lease of the tangible personal property or the price of the software or taxable service equal to an amount specified in or provided for by the coupon, and the seller or the person leasing tangible personal property to the lessee can reasonably expect not to be paid an amount for the redemption of the coupon by another person, for the purposes of this Act,

(

a) the purchase price of the tangible personal property, software or taxable service is equal to the initial price of the tangible personal property, software or taxable service less the amount specified in or provided for by the coupon, and

(

b) the lease price of the tangible personal property is equal to the initial price of the tangible personal property less the amount specified in or provided for by the coupon.

Purchase price if trade-in allowed on purchase

of tangible personal property

(1) In this section:

"applicable tax" means a tax imposed in relation to tangible personal property under any of the following:

(

a) this Act;

(

b) the Consumption Tax Rebate and Transition Act ;

(

c) the Social Service Tax Act ;

(d)

section 165 (2), 212.1 or 218.1 or Division IV.1 of

Part IX of the Excise Tax Act (Canada);

"initial price" , in relation to tangible personal property, means the purchase price of the tangible personal property under

section 9 (

a) to (c).

(2) Subsection (3) does not apply if the tangible personal property sold or the tangible personal property accepted on account of the property sold is a multijurisdictional vehicle.

(3) If, in relation to a sale in British Columbia of tangible personal property, tangible personal property on which the purchaser has previously paid an applicable tax or that was exempt from an applicable tax is accepted at the time of sale by a collector as consideration on account of the price of the tangible personal property sold, for the purposes of this Act, the purchase price of the tangible personal property sold is the amount equal to the initial price of the tangible personal property sold less the amount of the credit allowed for the tangible personal property accepted on account of the price of the tangible personal property sold.

(4) If a motor vehicle on which a person referred to in

section 49 (5) [tax if tangible personal property brought into British Columbia for use] has previously paid an applicable tax or that was exempt from an applicable tax is accepted at the time of sale of a motor vehicle to which that

section applies by the seller as consideration on account of the price of the motor vehicle sold, for the purposes of

section 49 (8), the purchase price of the motor vehicle sold is the amount equal to the initial price of the motor vehicle sold less the amount of the credit allowed for the motor vehicle accepted on account of the price of the motor vehicle sold.

Depreciated purchase price of tangible personal property

(1) Subject to subsection (3), this

section applies in respect of prescribed tangible personal property that becomes subject to tax under any of the following sections:

(

a) section 49 [tax if tangible personal property brought into British Columbia for use] ;

(

b) section 51 [tax if tangible personal property brought into British Columbia for temporary use] ;

(

c) section 52 [tax if tangible personal property brought into British Columbia by non-residents] ;

(

d) section 63 [tax if conveyance brought into and used in British Columbia] ;

(

e) section 64 [tax if change in use of conveyance acquired for resale] ;

(

f) section 72 [tax if vehicle ceases to be multijurisdictional] ;

(

g) section 82 [tax if property used for new purpose] ;

(

h) section 83 [tax if change in use of property acquired for lease] ;

(

i) section 84 [tax if change in use of resulting tangible personal property] ;

(

j) section 85 [tax if change in use of prototype] ;

(

k) section 86 [tax if change in use of property for which refund received under taxation agreement] .

(2) For the purposes of this Act, the purchase price of the prescribed tangible personal property to which this

section applies is the greater of the following amounts:

(

a) the depreciated value, determined in accordance with the regulations, of the prescribed tangible personal property,

(

i) in the case of

section 49, 51, 52 or 63, on the entry date of the tangible personal property,

(ii) in the case of

section 64, on the date the person to whom the

section applies first becomes a user of the conveyance,

(iii) in the case of

section 72, on the date the vehicle is subsequently licensed for use solely within British Columbia,

(iv) in the case of

section 82, on the date the tangible personal property is subsequently used or allowed to be used as referred to in

section 82 (1) (b),

(

v) in the case of

section 83, on the date the tangible personal property subsequently ceases to be capitalized as lease inventory as referred to in

section 83 (1) (b),

(vi) in the case of

section 84, on the date the person to whom the

section applies first becomes a user of the tangible personal property,

(vii) in the case of

section 85, on the date the person to whom the

section applies

(

A) first becomes a user of the prototype or copy of the prototype, or

(

B) receives consideration for use of the prototype or copy of the prototype, and

(viii) in the case of

section 86, on the date the tangible personal property is subsequently used or allowed to be used as referred to in

section 86 (1) (b);

(b) 50% of the amount that would be the purchase price of the prescribed tangible personal property but for this section.

(3) This

section does not apply if the tangible personal property becomes subject to tax under

section 49, 51, 52, 63, 64, 72, 82, 83, 84, 85 or 86 less than 14 days after the date of purchase.

Purchase price if bundled purchase

(1) This

section applies if a taxable component is sold with a non-taxable component for a single price.

(2) Subject to subsection (3), for the purposes of this Act, the purchase price of a taxable component is equal to the fair market value of the taxable component.

(3) For the purposes of this Act, the purchase price of a taxable component is equal to the total value of the consideration accepted by the seller for all the taxable and non-taxable components sold for the single price if

(

a) the fair market value of the taxable component is greater than 90% of the single price and the single price is less than $500, or

(

b) the non-taxable component is not ordinarily available for sale separate from the taxable component.

Valuation by director

(1) For the purposes of subsection (2), the director may determine the fair market value of the following:

(

a) tangible personal property

(

i) that passes at a sale,

(ii) that is brought or sent into British Columbia,

(iii) that is delivered in British Columbia, or

(iv) to which Division 9 [Change in Use] of

Part 3 applies;

(

b) a lease of tangible personal property;

(

c) software

(

i) that passes at a sale,

(ii) that is used in British Columbia, or

(iii) to which

section 109 [tax if use of software changes] applies;

(

d) a provision of a taxable service.

(2) If the director makes a determination under subsection (1), for the purposes of this Act,

(

a) the fair market value of the tangible personal property as determined under subsection (1) (

a) is deemed to be the purchase price of the tangible personal property,

(

b) the fair market value of the tangible personal property as determined under subsection (1) (

b) is deemed to be the lease price of the tangible personal property,

(

c) the fair market value of the software as determined under subsection (1) (

c) is deemed to be the purchase price of the software, and

(

d) the fair market value of the taxable service as determined under subsection (1) (

d) is deemed to be the purchase price of the taxable service.

(3) For the purposes of paragraph (

m) of the definition of "sale" and paragraph (a) (ix) of the definition of "use", the director may determine whether tangible personal property or a type of tangible personal property has a nominal value.

Part 2 – When Tax Is Payable

When tax is payable in respect of a purchase or lease

(1) In this section, "relevant provision" means any of the following:

(

a) section 37 [tax on purchase] ;

(

b) section 39 [tax on leases] ;

(

c) section 43 [additional tax on lease of passenger vehicle] ;

(

d) section 49 [tax if tangible personal property brought into British Columbia for use] ;

(

e) section 52 [tax if tangible personal property brought into British Columbia by non-residents] ;

(

f) section 80 [tax on tangible personal property used to improve real property] ;

(

g) section 92 [tax on purchase of energy product] ;

(

h) section 93 [tax if energy product brought into British Columbia for use] ;

(

i) section 99 [tax on acquisition of exclusive product by independent sales contractor] ;

(

j) section 101 [tax on reusable containers] ;

(

k) section 105 [tax on use of software] ;

(

l) section 106 [tax on business use of software on device in British Columbia] ;

(

m) section 116 [tax if contract for property conversion related to purchase] ;

(

n) section 117 [tax if contract for modification of purchased property] ;

(

o) section 119 [tax on purchase of related service provided in British Columbia] ;

(

p) section 122 [tax on accommodation] ;

(

q) section 123 [tax on accommodation in designated accommodation area] ;

(

r) section 126 [tax if legal services provided in British Columbia] ;

(

s) section 127 [tax if legal services provided to British Columbia resident] ;

(

t) section 130 [tax on purchase of telecommunication service] ;

(

u) section 131 [tax on provision of dedicated telecommunication services] .

(2) Subject to sections 29 and 30, this

section applies to tax imposed under a relevant provision.

(3) Tax imposed under a relevant provision is payable on the earlier of

(

a) the day the consideration for the purchase or lease of tangible personal property or for the purchase of the software or taxable service is paid, and

(

b) the day the consideration for the purchase or lease of tangible personal property or for the purchase of the software or taxable service becomes due.

(4) Despite subsection (3), if the consideration for a purchase or lease of tangible personal property or for a purchase of software or a taxable service is paid or becomes due on more than one day,

(

a) tax under a relevant provision in respect of the purchase or lease of the tangible personal property or the purchase of the software or taxable service is payable on each day that is the earlier of the day a portion of the consideration is paid and the day that portion becomes due, and

(

b) the tax that is payable on each day under paragraph (

a) is to be calculated on the portion of the purchase price that is attributable to the portion of the consideration that is paid or becomes due, as applicable, on that day.

(5) Despite subsections (3) and (4), if all or any portion of the consideration for a purchase of tangible personal property has not been paid or becomes due on or before the last day of the month immediately following the first month in which,

(

a) in relation to a purchase of tangible personal property by way of sale, other than a purchase described in paragraph (b), the ownership or possession of the tangible personal property is transferred to the purchaser, or

(

b) in relation to a purchase of tangible personal property by way of sale under which the seller delivers the tangible personal property to the purchaser on approval, consignment, sale-or-return basis or other similar terms, the purchaser acquires ownership of the tangible personal property or makes the tangible personal property available to any person, other than the seller,

tax under a relevant provision in respect of the purchase of the tangible personal property, calculated on the value of that consideration or portion, as applicable, is payable on that day.

(6) Subsection (5) does not apply in respect of a purchase of tangible personal property if the tangible personal property is delivered or made available to the purchaser on a continuous basis by means of a wire, pipeline or other conduit and the seller invoices the purchaser in respect of that purchase on a regular or periodic basis.

(7) If under subsection (5) tax is payable on a day and the purchase price, or any portion of the purchase price, for the purchase of the tangible personal property is not ascertainable on that day,

(

a) tax calculated on the purchase price or portion, as applicable, that is ascertainable on that day is payable on that day, and

(

b) tax calculated on the purchase price or portion, as applicable, that is not ascertainable on that day is payable on the day the purchase price or portion becomes ascertainable.

(8) Despite subsections (3) to (5) and (7), if a purchaser or lessee of tangible personal property or a purchaser of software or a taxable service retains, under

(

a) a law of Canada or another province, or

(

b) an agreement in writing for the construction, renovation, alteration or repair of any real property or any ship or other marine vessel,

a portion of the consideration for the purchase or lease of the tangible personal property or the purchase of the software or taxable service pending full and satisfactory performance, or any part thereof, tax under a relevant provision, calculated on the purchase price that is attributable to that portion of the consideration, is payable on the earlier of the day that portion of that consideration is paid and the day that portion of that consideration becomes payable.

(9) Subject to subsection (10), for the purposes of this section, a deposit, whether refundable or not, given in respect of a purchase or lease of tangible personal property or a purchase of software or a taxable service is not consideration paid for the purchase or lease of the tangible personal property or the purchase of the software or taxable service unless and until the seller or lessor applies the deposit as consideration for that purchase or lease.

(10) For the purposes of this section, a deposit, whether refundable or not, given in respect of a purchase of a reusable container is not consideration paid for the purchase of the reusable container.

When tax is payable if tax not collected

when consideration is paid or becomes due

(1) In this section, "relevant provision" has the same meaning as in

section 28.

(2) Subject to

section 30, if a person must pay tax imposed under a relevant provision and the tax is not levied in accordance with

section 179 (1) [collection and remittance of tax by collector] ,

(

a) the person who must pay the tax must file a taxpayer return with the director, and

(

b) subject to subsection (3), the tax is payable on the last day of the month after the month in which the tax would otherwise be payable under

section 28.

(3) If subsection (2) applies to a person who must pay tax imposed under

section 49 [tax if tangible personal property brought into British Columbia for use ], 52 [tax if tangible personal property brought into British Columbia by non-residents] , 93 [tax if energy product brought into British Columbia for use] or 101 (2) [tax on reusable containers] , the tax payable under

section 49, 52, 93 or 101 (2) must be paid on or before the last day of the month after the month that includes the entry date of that tangible personal property.

When tax is payable in respect of vehicles

(1) Tax imposed under

section 37 [tax on purchase] , 49 [tax if tangible personal property brought into British Columbia for use] , 52 [tax if tangible personal property brought into British Columbia by non-residents] or 100 [tax on gift of vehicle, boat or aircraft given in British Columbia] in respect of a vehicle is payable, if the tax has not been paid in accordance with

section 28, on the earlier of

(

a) the time that an application is made for the registration of the vehicle under the vehicle registration legislation, and

(

b) the last day of the month after the month,

(

i) in the case of

section 37, in which the vehicle is purchased at a sale in British Columbia,

(ii) in the case of

section 49 or 52, that includes the entry date of the vehicle, and

(iii) in the case of

section 100, in which the person receives the gift of the vehicle.

(2) Tax imposed under

section 40 [tax on motor vehicle leased outside British Columbia and registered for use in British Columbia] or 50 [tax on registration of vehicle brought into British Columbia] is payable at the time that an application is made for the registration of the vehicle under the vehicle registration legislation.

(3) If a person must pay tax imposed under

section 37, 40, 49, 50, 52 or 100 in respect of a vehicle and, under subsection (1) (

a) or (2) of this section, the tax is payable at the time that an application is made for the registration of the vehicle under the vehicle registration legislation, the person must

(

a) pay the tax to the Insurance Corporation of British Columbia, or

(

b) provide prescribed information or a prescribed document to the Insurance Corporation of British Columbia.

(4) If a person must pay tax imposed under

section 37, 49, 52 or 100 in respect of a vehicle and the tax is payable in accordance with subsection (1) (

b) of this section, the person must file a taxpayer return with the director.

When tax is payable in respect of gifts of boats or aircraft

31 If a person must pay tax imposed under

section 100 in respect of a gift of a boat or aircraft,

(

a) the tax is payable on the last day of the month after the month in which the person receives the gift of the boat or aircraft, and

(

b) the person must file a taxpayer return with the director.

Tax payment agreements in relation to

tangible personal property and software

(1) The director may, in the circumstances established by the regulations, enter into an agreement, with a person liable to pay tax imposed under

Part 3 [Taxes in Relation to Tangible Personal Property] or

Part 4 [Taxes in Relation to Software] , relating to the manner in which the tax is to be paid to the government.

(2) An agreement referred to in subsection (1) is subject to subsection (7) and the conditions established in the regulations.

(3) An agreement referred to in subsection (1) must provide for the following:

(

a) the types of tangible personal property or software to which the agreement applies;

(

b) subject to the regulations, the circumstances in which the person liable to pay tax must pay the tax directly to the government, instead of paying the tax to a collector in relation to a purchase or lease of tangible personal property or a purchase of software to which the agreement applies.

(4) Despite anything in this Act, an agreement referred to in subsection (1) may provide for the following:

(

a) for the manner in which interest is calculated;

(

b) for payments that are based on formulas or estimates referred to in the agreement;

(5) If an agreement referred to in subsection (1) is entered into, despite anything in this Act but subject to the agreement, the person liable to pay tax must pay the tax, at the prescribed time and in the prescribed manner, directly to the government in relation to a purchase or lease of tangible personal property or a purchase of software to which the agreement applies.

(6) If an agreement referred to in subsection (1) is entered into, subject to the regulations, the collector is relieved of the obligation to levy and collect the tax.

(7) The director may terminate the agreement referred to in subsection (1) if the director is satisfied that the person who entered into the agreement with the director has failed to comply with this Act, the regulations or a term or condition of the agreement.

When consideration becomes due

(1) For the purposes of this Act, all or a portion of the consideration for a purchase or lease of tangible personal property or for a purchase of software or a taxable service becomes due on the earliest of the following:

(

a) the earlier of

(

i) the day the seller of the tangible personal property, software or taxable service, or the person from whom the tangible personal property is leased, first issues an invoice in respect of the sale or lease for that consideration or portion of that consideration, and

(ii) the date of the invoice;

(

b) the day the seller of the tangible personal property, software or taxable service, or the person from whom the tangible personal property is leased, would have, but for an undue delay, issued an invoice in respect of the sale or lease for that consideration or portion of that consideration;

(

c) the day the purchaser or lessee is required under a written agreement to pay that consideration or portion of that consideration to the seller of the tangible personal property, software or taxable service or to the person from whom the tangible personal property is leased.

(2) Despite subsection (1), if tangible personal property, software or a taxable service is supplied by means of a lease, licence or similar arrangement under a written agreement, for the purposes of this Act, all or a portion of the consideration for the property, software or service becomes due on the day the purchaser or lessee is required under the agreement to pay the consideration or portion of the consideration to the seller or the person from whom the tangible personal property is leased.

(3) For the purposes of this Act, if consideration that is not money is given or required to be given,

(

a) the consideration that is given is deemed to be paid, and

(

b) the consideration that is required to be given is deemed to be required to be paid.

Part 3 – Taxes in Relation to

Tangible Personal Property

Division 1 – Rates of Tax

Rates of tax in relation to purchase price

(1) Subject to this section, the rate of tax payable under sections 37, 49 (6) (a), 52, 80 to 86 and 99 on tangible personal property is 7% of the purchase price of the tangible personal property.

(2) The rate of tax payable under sections 37, 49 (6) (a), 52, 81 to 84 and 86 on liquor is 10% of the purchase price of the liquor.

(3) Subject to subsections (5) and (6), the rate of tax payable under sections 37, 49 (6) (a), 50 (2) (a), 52 and 81 to 86 on a vehicle, boat or aircraft is 12% of the purchase price of the vehicle, boat or aircraft.

(4) Subsections (5) and (6) apply if the person who must pay tax under the applicable section, or another person referred to in

section 49 (1) (b), on the vehicle, boat or aircraft

(

a) acquired the vehicle, boat or aircraft at a sale in Canada that is a taxable supply by a registrant under

Part IX [Goods and Services Tax] of the Excise Tax Act (Canada),

(

b) imported the vehicle, boat or aircraft from outside Canada, or

(

c) acquired the vehicle, boat or aircraft in prescribed circumstances.

(5) Subject to subsection (6), the rate of tax payable under sections 37, 49 (6) (a), 50 (2) (a), 52 and 81 to 86 on a vehicle, boat or aircraft is 7% of the purchase price of the vehicle, boat or aircraft.

(6) The rate of tax payable under sections 37, 49 (6) (a), 50 (2) (a), 52 and 81 to 86 on a passenger vehicle is as follows:

(a) 7% of the purchase price of the passenger vehicle, if the original purchase price is less than $55 000;

(b) 8% of the purchase price of the passenger vehicle, if the original purchase price is $55 000 or more but less than $56 000;

(c) 9% of the purchase price of the passenger vehicle, if the original purchase price is $56 000 or more but less than $57 000;

(d) 10% of the purchase price of the passenger vehicle, if the original purchase price is $57 000 or more.

(7) The rate of tax payable under sections 37, 49 (6) (a), 52 and 80 on a manufactured mobile home is 7% of the amount equal to 50% of the purchase price of the manufactured mobile home, if the manufactured mobile home is designed for, and will be used as, a family residential dwelling unit.

(8) The rate of tax payable under sections 37, 49 (6) (a), 52 and 80 on a manufactured modular home is 7% of the amount equal to 55% of the purchase price of the manufactured modular home, if the manufactured modular home is designed for, and will be used as, a family residential dwelling unit.

(9) Subsections (7) and (8) do not apply to the following:

(

a) free-standing appliances, free-standing furniture and draperies sold with a manufactured home;

(

b) repair parts purchased for a manufactured home;

(

c) related services provided in respect of a manufactured home.

Rates of tax in relation to lease price

(1) In this section, "tax rate value" , in relation to a passenger vehicle, means, for so long as the lessor remains the owner of the passenger vehicle, the fair market value of the passenger vehicle on the first date on which the lessor leases the passenger vehicle to any person.

(2) Subject to subsection (3), the rate of tax payable under sections 39 [tax on leases] and 102 [tax on leased property occasionally supplied with operator] on tangible personal property is 7% of the lease price of the tangible personal property.

(3) The rate of tax payable under sections 39 and 102 on a passenger vehicle is as follows:

(a) 7% of the lease price, if the tax rate value of the passenger vehicle is less than $55 000;

(b) 8% of the lease price, if the tax rate value of the passenger vehicle is $55 000 or more but less than $56 000;

(c) 9% of the lease price, if the tax rate value of the passenger vehicle is $56 000 or more but less than $57 000;

(d) 10% of the lease price, if the tax rate value of the passenger vehicle is $57 000 or more.

Rates of tax in relation to gifts

(1) Subject to this section, the rate of tax payable under

section 49 (6) (

c) is 7% of the fair market value of the tangible personal property on the entry date of the property.

(2) The rate of tax payable under

section 49 (6) (

c) on liquor is 10% of the fair market value of the liquor on the entry date of the liquor.

(3) Subject to subsections (5) and (6), the rate of tax payable under sections 49 (6) (

c) and 50 (2) (

b) on a vehicle, boat or aircraft is 12% of the fair market value of the vehicle, boat or aircraft on the entry date of the vehicle, boat or aircraft.

(4) Subsections (5) and (6) apply if the donor who gave the gift to the person who must pay tax under

section 49 (6) (

c) or 50 (2) (b)

(

a) is a registrant under

Part IX [Goods and Services Tax] of the Excise Tax Act (Canada), or

(

b) acquired the vehicle, boat or aircraft in prescribed circumstances.

(5) Subject to subsection (6), the rate of tax payable under sections 49 (6) (

c) and 50 (2) (

b) on a vehicle, boat or aircraft is 7% of the fair market value of the vehicle, boat or aircraft on the entry date of the vehicle, boat or aircraft.

(6) The rate of tax payable under sections 49 (6) (

c) and 50 (2) (

b) on a passenger vehicle is as follows:

(a) 7% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is less than $55 000;

(b) 8% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is $55 000 or more but less than $56 000;

(c) 9% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is $56 000 or more but less than $57 000;

(d) 10% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is $57 000 or more.

(7) The rate of tax payable under

section 49 (6) (

c) on a manufactured mobile home is 7% of the amount equal to 50% of the fair market value of the manufactured mobile home on the entry date of the manufactured mobile home, if the manufactured mobile home is designed for, and will be used as, a family residential dwelling unit.

(8) The rate of tax payable under

section 49 (6) (

c) on a manufactured modular home is 7% of the amount equal to 55% of the fair market value of the manufactured modular home on the entry date of the manufactured modular home, if the manufactured modular home is designed for, and will be used as, a family residential dwelling unit.

(9) Subsections (7) and (8) do not apply to the following:

(

a) free-standing appliances, free-standing furniture and draperies sold with a manufactured home;

(

b) repair parts purchased for a manufactured home;

(

c) related services provided in respect of a manufactured home.

Division 2 – Purchases of Tangible Personal Property

Tax on purchase

(1) A purchaser who purchases tangible personal property at a sale in British Columbia must pay to the government tax at the applicable rate under

section 34.

(2) Subsection (1) does not apply to the following:

(

a) a purchaser of tangible personal property, if the purchaser must pay tax imposed under Division 5 [Property Brought into British Columbia from Outside Canada] in relation to the tangible personal property;

(

b) a purchaser of a conveyance, if the purchaser must pay tax imposed under

section 60 [tax if conveyance purchased in British Columbia for interjurisdictional use] in relation to the conveyance;

(

c) a purchaser of a vehicle, if the vehicle is to be immediately licensed in British Columbia as described in

section 69 (1) (a) [tax if multijurisdictional vehicle licensed] ;

(

d) a purchaser of a reusable container, if the purchaser must pay tax imposed under

section 101 (1) [tax on reusable containers] .

(3) If a collector sells tangible personal property at a sale in British Columbia to a person who alleges that the tangible personal property is being purchased for resale, the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains from that person, at or before the time the tax is payable, a declaration in a form acceptable to the director, prescribed information or a prescribed document.

(4) If a collector sells a vehicle at a sale in British Columbia to a person who alleges that the vehicle is to be immediately licensed in British Columbia as described in

section 69 (1) (a), the collector must nevertheless levy and collect the tax under subsection (1) of this

section unless the collector obtains from that person, at or before the time the tax is payable, a declaration in a form acceptable to the director, prescribed information or a prescribed document.

(5) If a collector sells tangible personal property at a sale in British Columbia to a person who alleges that the person is exempt under

section 79 (1) from paying tax under subsection (1) of this section, the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains from that person, at or before the time the tax is payable, a declaration in a form acceptable to the director, prescribed information or a prescribed document.

Division 3 – Leases of Tangible Personal Property

Application of this Division

38 This Division does not apply in relation to the following:

(

a) a conveyance that is subject to tax or is exempt from tax under Division 6 [Conveyances Used Interjurisdictionally] ;

(

b) subject to

section 39 (2), a multijurisdictional vehicle.

Tax on leases

(1) A lessee of tangible personal property must pay to the government, in respect of each rental period under the lease, tax at the applicable rate under

section 35 [rates of tax in relation to lease price] .

(2) Subsection (1) applies in relation to a short term rental vehicle leased to the lessee.

(3) Subsection (1) does not apply to a lessee of tangible personal property if the lessee must pay tax imposed under

section 40 in relation to the lease.

Tax on motor vehicle leased outside British Columbia

and registered for use in British Columbia

(1) In this section, "taxable value" , in relation to a motor vehicle, means the fair market value of the motor vehicle on the date the motor vehicle is registered for use in British Columbia under the vehicle registration legislation.

(2) If a lessee of a motor vehicle leases the motor vehicle for a period of more than 28 days from a person who is located outside British Columbia and registers the motor vehicle for use in British Columbia under the vehicle registration legislation, the lessee must pay to the government tax as follows:

(

a) if the motor vehicle is not a passenger vehicle, at the rate of 7% of the taxable value of the motor vehicle;

(

b) if the motor vehicle is a passenger vehicle, at the applicable rate as follows:

(i) 7% of the taxable value, if the taxable value of the passenger vehicle is less than $55 000;

(ii) 8% of the taxable value, if the taxable value of the passenger vehicle is $55 000 or more but less than $56 000;

(iii) 9% of the taxable value, if the taxable value of the passenger vehicle is $56 000 or more but less than $57 000;

(iv) 10% of the taxable value, if the taxable value of the passenger vehicle is $57 000 or more.

Tax if leased property used in and outside

British Columbia during rental period

(1) Subject to subsection (2), this

section applies to a lessee of tangible personal property in relation to a rental period under the lease if

(

a) the lessee brings or sends into British Columbia, or receives delivery of in British Columbia, the tangible personal property,

(

b) the lessee

(

i) is a BC resident, or

(ii) uses the tangible personal property in British Columbia in the course of the lessee's business, whether or not the lessee's business is carried on in British Columbia, and

(

c) the tangible personal property is for use or is used in and outside British Columbia during the rental period.

(2) This

section does not apply to a lessee if the lessee must pay tax imposed under

section 39 or 40 in relation to the lease.

(3) A lessee to whom this

section applies must pay to the government, in relation to the rental period under the lease, tax on the tangible personal property in the amount determined by the following formula:

amount = lease price x rate x

BC usage

total usage

where

lease price

lease price of the tangible personal property;

rate

the percentage in

section 35 [rates of tax in relation to lease price] that is applicable to the tangible personal property;

BC usage

the number of hours the tangible personal property is in British Columbia in the rental period;

total usage

the total number of hours in that rental period.

(4) Tax payable under subsection (3) must be paid on or before the last day of the month after the month in which the rental period ends.

Tax if balance of lease price becomes due on breach of lease

(1) If a lessee breaches a lease that provides for

(

a) the lease of tangible personal property that is subject to tax under

section 39 or 41, and

(

b) the payment, on breach of the lease, of the whole of the outstanding balance of the lease price for all remaining rental periods,

the lessee must pay to the government tax at the rate of 7% of the amount of the outstanding balance of the lease price.

(2) Tax payable under subsection (1) must be paid,

(

a) subject to paragraph (b), if the tangible personal property is subject to tax under

section 39, at the time the payment referred to in subsection (1) (

b) of this

section becomes due under the terms of the lease, or

(

b) if the tangible personal property is subject to tax under

section 39 and the tax is not collected in accordance with subsection (4) of this section, or the tangible personal property is subject to tax under

section 41, on or before the last day of the month after the month in which the payment referred to in subsection (1) (

b) of this

section becomes due under the terms of the lease.

(3) If a person must pay tax under subsection (1) and the tax is payable in accordance with subsection (2) (a), the person must file a taxpayer return with the director.

(4) If the lessor is a collector and the tax under subsection (1) is payable in accordance with subsection (2) (a), the lessor must levy and collect the tax at the time the tax is payable in accordance with that subsection.

Additional tax on lease of passenger vehicle

(1) In addition to any tax payable under

section 39, a lessee who leases a passenger vehicle must pay to the government, for the raising of revenue for the BC Transportation Financing Authority continued under the Transportation Act , tax at the rate of $1.50 for each day or portion of a day that the lessee leases the vehicle.

(2) Subsection (1) does not apply if the passenger vehicle that is the subject matter of the lease is leased to the lessee for a period of

(a) 8 consecutive hours or less, or

(

b) more than 28 consecutive days.

Exemptions in relation to leases

(1) Tangible personal property is exempt from tax imposed under this Division if

(

a) the tangible personal property was sold to the lessor by the lessee under a sale and immediate lease-back arrangement, and

(

b) the lessee had, before the sale to the lessor, paid tax imposed under this

Part in respect of the tangible personal property.

(2) If a collector, as lessor, leases tangible personal property to a person who alleges that the person is exempt under subsection (1) from paying tax under this Division, the collector must nevertheless levy and collect the tax under this Division unless the collector obtains from that person, at or before the time the tax is payable, a declaration in a form acceptable to the director, prescribed information or a prescribed document.

Refund for leased property used outside British Columbia

(1) If the director is satisfied that

(

a) a lessee of tangible personal property paid tax under

section 39 in respect of a rental period under the lease, and

(

b) the tangible personal property was used outside British Columbia during the rental period,

the director must pay a refund to the lessee in accordance with subsection (2).

(2) The amount of a refund under subsection (1) in respect of a rental period under the lease is equal to the amount of tax paid under

section 39 in respect of the rental period less the amount of tax that would have otherwise been payable under

section 41 in respect of the rental period if that

section had applied to the lessee in respect of the rental period.

(3) This

section does not apply in respect of a lease of a motor vehicle registered for use in British Columbia under the vehicle registration legislation.

Refund on motor vehicle leased outside British Columbia

46 On termination or expiration of the lease for a motor vehicle referred to in

section 40 (2), or on removal of the motor vehicle from British Columbia for registration outside British Columbia, the director may provide a refund to the lessee in the amount of the difference between the tax paid under

section 40 at the time of registering the vehicle less the sum of all taxes that would have otherwise been payable under

section 39, 41 or 42.

Division 4 – Tangible Personal Property

Brought into British Columbia

Definition

47 In this Division, "calculation year" , in relation to tangible personal property, means the following:

(

a) the period beginning on the date the property is first brought or sent into, or is delivered in, British Columbia during any year and ending on the day before the first anniversary of that date;

(

b) if the property is in British Columbia for a continuous period that is longer than the period referred to in paragraph (a), the period beginning on the day after the immediately preceding calculation year and ending on the day before the first anniversary of that date.

Application of this Division

48 This Division does not apply in relation to the following:

(

a) tangible personal property that is subject to tax or is exempt from tax under

section 37 or 101 (2);

(

b) tangible personal property, if tax is paid under Division 5 [Property Brought into British Columbia from Outside Canada] in respect of the tangible personal property;

(

c) a conveyance that is subject to tax or is exempt from tax under Division 6 [Conveyances Used Interjurisdictionally] ;

(

d) a multijurisdictional vehicle;

(

e) software.

Tax if tangible personal property brought

into British Columbia for use

(1) Subject to subsections (2) and (3), this

section applies to a person in relation to tangible personal property if

(

a) the person is a BC resident who brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property that is for use or consumption

(

i) by the BC resident,

(ii) by another person at the BC resident's expense,

(iii) by a principal for whom the BC resident acts as agent, or

(iv) by another person at the expense of a principal for whom the BC resident acts as agent,

(

b) the person is a BC resident and a person who is not a BC resident brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property that is for use or consumption

(

i) by the BC resident, or

(ii) by the person who is not a BC resident, or by another person, at the BC resident's expense, or

(

c) the person

(

i) brings or sends into British Columbia, or receives delivery of in British Columbia, the tangible personal property, and

(ii) uses the tangible personal property in British Columbia in the course of the person's business, whether or not the business is carried on in British Columbia.

(2) This

section does not apply to a person if

(

a) any person referred to in subsection (1) has leased the tangible personal property, as lessee, or

(

b) the director is satisfied under

section 51 (1) that the tangible personal property is brought or sent into British Columbia, or is delivered in British Columbia, for temporary use.

(3) This

section does not apply in relation to tangible personal property that is subject to tax under

section 52.

(4) A person is not required to pay tax under this

section in respect of a vehicle if a person pays tax under

section 50 in respect of the bringing or sending into British Columbia, or the delivery in British Columbia, of the vehicle.

(5) A person to whom this

section applies must pay to the government tax, subject to subsection (8), at the applicable rate under subsection (6).

(6) The rate of tax payable under subsection (5) is,

(

a) subject to paragraphs (

b) and (c), the applicable rate under

section 34 [rates of tax in relation to purchase price] ,

(

b) subject to paragraph (c), the applicable rate under subsection (8) of this section, and

(

c) if the tangible personal property that is subject to tax under subsection (5) is brought or sent into British Columbia by, or is delivered in British Columbia to, a person who received the tangible personal property as a gift, the applicable rate under

section 36 [rates of tax in relation to gifts] .

(7) Subsection (8) applies to a motor vehicle

(

a) acquired outside British Columbia but in Canada, and

(

b) brought or sent into British Columbia or the delivery of which is received in British Columbia.

(8) The rate of tax payable under subsection (5) on a motor vehicle to which this subsection applies is as follows:

(

a) if the motor vehicle is not a passenger vehicle, at the rate of 7% of the purchase price of the motor vehicle;

(

b) if the motor vehicle is a passenger vehicle, at the applicable rate as follows:

(i) 7% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is less than $55 000;

(ii) 8% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is $55 000 or more but less than $56 000;

(iii) 9% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is $56 000 or more but less than $57 000;

(iv) 10% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is $57 000 or more.

(9) The amount of tax payable under subsection (5) by a person in relation to tangible personal property is reduced by the amount of tax under any of the following previously paid by and not refunded to the person in relation to the tangible personal property:

(

a) this Act;

(

b) the Consumption Tax Rebate and Transition Act ;

(

c) the Social Service Tax Act ;

(d)

section 165 (2), 212.1 or 218.1 or Division IV.1 of

Part IX of the Excise Tax Act (Canada).

(10) If a collector causes tangible personal property to be delivered in British Columbia to a person who alleges that the person is exempt under

section 79 (2) or prescribed sections of the regulations from paying tax under subsection (5) of this section, the collector must nevertheless levy and collect the tax under subsection (5) unless the collector obtains from that person, at or before the time the tax is payable, a declaration in a form acceptable to the director, prescribed information or a prescribed document.

Tax on registration of vehicle brought into British Columbia

(1) This

section applies if

(

a) a person brings or sends into British Columbia, or receives delivery of in British Columbia, a vehicle for use

(

i) by the person,

(ii) by another person at the first person's expense,

(iii) by a principal for whom the first person acts as agent, or

(iv) by another person at the expense of a principal for whom the first person acts as agent, and

(

b) any of the persons referred to in paragraph (

a) register the vehicle under the vehicle registration legislation.

(2) Subject to subsection (3), if this

section applies, the person who registers the vehicle must pay to the government tax on the vehicle,

(

a) subject to paragraph (b), at the applicable rate under

section 34, and

(

b) if the tangible personal property that is subject to tax under this

section is brought or sent into British Columbia by, or is delivered in British Columbia to, a person who received the tangible personal property as a gift, at the applicable rate under

section 36 [rates of tax in relation to gifts] .

(3) A person is not required to pay tax under this

section in respect of a vehicle if the person has paid tax under

section 49 or 52 in respect of the vehicle.

Tax if tangible personal property brought into

British Columbia for temporary use

(1) Subject to subsection (2), this

section applies to a person in relation to tangible personal property if

(

a) section 49 would apply to the person in relation to the tangible persona