Copyright © Queen's Printer,

Victoria, British Columbia, Canada

Licence

Disclaimer

Volume 57, No. 12

117/2014

The British Columbia Gazette,

Part II

July 1, 2014

B.C. Reg. 117/2014 , deposited June 23, 2014, under the BUDGET MEASURES IMPLEMENTATION ACT, 2014 [section 120], the PROVINCIAL SALES TAX ACT [sections 236 to 238, 240 to 242 and 246] and the PROVINCIAL SALES TAX TRANSITIONAL PROVISIONS AND AMENDMENTS ACT, 2013 [section 47]. Order in Council 395/2014, approved and ordered June 20, 2014.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders as follows:

1 Sections 44, 55, 90, 91, 95 and 98 of the Budget Measures Implementation Act, 2014 , S.B.C. 2014, c. 4, are brought into force.

2 Effective April 1, 2013, the Provincial Sales Tax Regulation, B.C. Reg. 96/2013, is amended as set out in

Schedule 1.

3 Effective February 19, 2014, the Provincial Sales Tax Regulation, B.C. Reg. 96/2013, is amended as set out in

Schedule 2.

4 The Provincial Sales Tax Regulation, B.C. Reg. 96/2013, is amended as set out in

Schedule 3.

5 Effective April 1, 2013, the Provincial Sales Tax Exemption and Refund Regulation, B.C. Reg. 97/2013, is amended as set out in

Schedule 4.

6 Effective February 19, 2014, the Provincial Sales Tax Exemption and Refund Regulation, B.C. Reg. 97/2013, is amended as set out in

Schedule 5.

7 The Provincial Sales Tax Exemption and Refund Regulation, B.C. Reg. 97/2013, is amended as set out in

Schedule 6.

8 Effective April 1, 2013, the Provincial Sales Tax Transitional Regulation, B.C. Reg. 154/2013, is amended as set out in

Schedule 7.

9 Sections 1.1, 1.2, 8 and 9 of the Provincial Sales Tax Transitional Regulation, B.C. Reg. 154/2013, are repealed.

— M. DE JONG, Minister of Finance ; D. MCRAE, Presiding Member of the Executive Council .

Schedule 1

1 The Provincial Sales Tax Regulation, B.C. Reg. 96/2013, is amended by adding the following section:

Lease – incidental right to use tangible personal property

3.1 For the purposes of paragraph (

d) of the definition of “lease” in

section 1 of the Act, a right to use tangible personal property is merely incidental to an agreement for the right to use real property, or to an agreement for the provision of services that are not subject to tax under the Act, in the following prescribed circumstances:

(

a) in respect of an agreement for the right to use real property,

(

i) the term of the right to use the real property is 7 days or less,

(ii) there is no separate price for the right to use the tangible personal property, and

(iii) the total consideration payable for the right to use the real property, including the right to use the tangible personal property, is the same as, or only marginally different from, what would be the total consideration payable for the right to use the real property if there were no right to use the tangible personal property;

(

b) in respect of an agreement for the provision of services that are not subject to tax under the Act,

(

i) the fundamental and overriding objective of the agreement is the acquisition of the service and not the right to use the tangible personal property,

(ii) there is no separate price for the right to use the tangible personal property, and

(iii) the total consideration payable for the service, including the right to use the tangible personal property, is the same as, or only marginally different from, what would be the total consideration payable for the service if there were no right to use the tangible personal property.

2 The following

section is added:

Purchase price of software if bundled purchase – prescribed programs

10.1 For the purposes of

section 26 (4.1) (b) (

i) of the Act, the following programs are prescribed:

(

a) an educational program provided by a qualifying school, as defined in the Provincial Sales Tax Exemption and Refund Regulation, or another educational institution;

(

b) a training or instructional program designed to develop or improve the knowledge, skills or abilities needed by individuals for a particular trade, occupation or profession.

Section 12 is amended

(

a) in subsection (2) (b) (

i) and (iii) (

A) by adding “ brought or sent into British Columbia, received delivery of in British Columbia, ” before “ purchased or leased ”,

(

b) in subsection (2) (b) (ii) by adding “ brought or sent into British Columbia, received delivery of in British Columbia or ” before “ purchased ” and by striking out “ on at least ” and substituting “ of at least ”,

(

c) in subsection (2) (b) (iii) (

A) by striking out “ purchased the tangible personal property ” and substituting “ brought or sent into British Columbia, received delivery of in British Columbia or purchased tangible personal property ”,

(

d) in subsection (3) (

a) by adding “ brought or sent into British Columbia, delivered in British Columbia, ” before “ purchased or leased ”, and

(

e) in subsection (3) (

a) by adding “ brought or sent into British Columbia, delivered in British Columbia or ” before “ purchased, and ”.

Section 13 (2) is amended by striking out “

section 32 (3) (b) ” and substituting “s ection 32 (3) (a) ”.

Section 14 (a) (ii) and (b) (ii) is amended by adding “ brought or sent into British Columbia, delivered in British Columbia, ” before “ purchased or leased ”.

Part 6 is amended by adding the following Division:

Division 0.1 – General

Section 29 of Act – when tax is payable if tax not otherwise collected

31.1

(1) For the purposes of

section 29 (4) of the Act, the prescribed date is,

(

a) if the registrant’s reporting period is a period of one or more months, the last day of the month after the end of the registrant’s reporting period in which the tax would otherwise be payable under

section 28 [when tax is payable in respect of a purchase or lease] of the Act, or

(

b) if the registrant’s reporting period is not a period of one or more months, 30 days after the last day of the registrant’s reporting period in which the tax would otherwise be payable under

section 28 of the Act.

(2) Despite subsection (1), for the purposes of

section 29 (4) of the Act in relation to 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] of the Act, the prescribed date is

(

a) if the registrant’s reporting period is a period of one or more months, the last day of the month after the end of the registrant’s reporting period that includes the entry date of the tangible personal property, or

(

b) if the registrant’s reporting period is not a period of one or more months, 30 days after the last day of the registrant’s reporting period that includes the entry date of the tangible personal property.

7 The following

section is added:

Section 82.01 of Act – tax if leased property used for new purpose

48.1 For the purposes of

section 82.01 (7) of the Act, the prescribed date is,

(

a) if the registrant’s reporting period is a period of one or more months, the last day of the month after the end of the registrant’s reporting period in which the registrant first uses the tangible personal property, or allows the tangible personal property to be used, as referred to in

section 82.01 (1) (

b) of the Act, or

(

b) if the registrant’s reporting period is not a period of one or more months, 30 days after the last day of the registrant’s reporting period in which the registrant first uses the tangible personal property, or allows the tangible personal property to be used, as referred to in

section 82.01 (1) (

b) of the Act.

8 Division 1 of

Part 6 is amended by adding the following section:

Section 88 of Act – tax if leased tangible personal property becomes part of real property

55.1 For the purposes of

section 88 (4) of the Act, the prescribed date is,

(

a) if the registrant’s reporting period is a period of one or more months, the last day of the month after the end of the registrant’s reporting period in which the tangible personal property is used so that it ceases to be personal property at common law, or

(

b) if the registrant’s reporting period is not a period of one or more months, 30 days after the last day of the registrant’s reporting period in which the tangible personal property is used so that it ceases to be personal property at common law.

Section 78 (

a) is amended by striking out “ remitting the tax ” and substituting “ filing the collector’s return ”.

Section 79 is amended

(

a) by adding the following subsection:

(0.1) Subsection (1) applies to a person if

(

a) the person is not a registrant and any of the following apply:

(

i) the person must pay tax imposed under a relevant provision, as defined in

section 28 of the Act, and the tax is payable in accordance with

section 29 (2) (

b) or (3) of the Act;

(ii) the person must pay tax imposed under

section 37, 49, 52 or 100 of the Act in respect of a vehicle and the tax is payable in accordance with

section 30 (1.1) (

b) of the Act;

(iii) the person must pay tax imposed under

section 100 of the Act in respect of a gift of a boat or aircraft and the tax is payable in accordance with

section 31 (2) (

a) of the Act;

(iv) the person must pay tax imposed under

section 42 of the Act and the tax is payable in accordance with

section 42 (2) (

b) of the Act;

(

v) the person must pay tax imposed under

section 37 of the Act and the tax is payable in accordance with

section 88 of the Act;

(vi) the person must pay tax imposed under any of the sections referred to in

section 192 (1) of the Act, or

(

b) the person must pay tax imposed under any of the sections referred to in

section 192 (3) of the Act.

(

b) in subsection (1) by striking out everything before paragraph (

a) and substituting “ A person to whom this subsection applies must pay the tax referred to in subsection (0.1) in one of the following manners: ”, and

(

c) in subsection (2) by adding “ 29 (5), ” after “ sections ”, by adding “ 82.01 (7), ” after “ 82 (4), ” and by adding “ 88 (4), ” after “ 87 (3), ”.

Schedule 2

Section 8 of the Provincial Sales Tax Regulation, B.C. Reg. 96/2013, is repealed and the following substituted:

Purchase price if accommodation purchased with meals and other services

8 For the purposes of

section 19 (3) of the Act, the amount attributed to the purchase of accommodation is as follows:

(

a) if accommodation is also offered by the seller, or the person from whom the accommodation is acquired, without meals or other services, the purchase price at which accommodation without meals or other services is offered;

(

b) if paragraph (

a) does not apply, the lesser of

(i) 15% of the amount equal to the total value of the consideration accepted by the seller, or the person from whom the accommodation is acquired, including, without limitation, a price in money and the value of services accepted by that seller or person, as the price or on account of the price of the accommodation, meals and other services, and

(ii) $100 per day.

Schedule 3

Section 72 of the Provincial Sales Tax Regulation, B.C. Reg. 96/2013, is amended by adding the following subsection:

(4) For the purposes of

section 182.2 (4) [collection of tax on liquor sold by auction] of the Act, the prescribed date is the last day of the month after the month in which the liquor is sold by auction.

Section 73 is amended

(

a) by renumbering the

section as

section 73 (1),

(

b) in subsection (1) by striking out “ For the purposes of

section 179 (2), (3) and (4) of the Act, ” and substituting “ For the purposes of

section 179 (2) and (4) of the Act and for the purposes of

section 179 (3) of the Act in relation to a collector, ”, and

(

c) by adding the following subsection:

(2) For the purposes of

section 179 (3) of the Act in relation to a person who is not a collector, the prescribed manner is a manner set out in subsection (1) (b) (

i) to (

v) of this section.

3 The following

section is added:

Prescribed manner for remitting tax on liquor sold by auction

73.1 For the purposes of

section 182.2 (4) of the Act, the prescribed manner is a manner set out in

section 73 (1) (b) (

i) to (

v) of this regulation.

Section 77 is amended by adding the following subsection:

(3) For the purposes of

section 186 (1) of the Act, the prescribed date for the filing of a collector’s return by a person referred to in

section 186 (1) (

d) of the Act is the last day of the month after the month in which the liquor is sold by auction.

Section 78 is amended

(

a) by renumbering the

section as

section 78 (1),

(

b) in subsection (1) by adding “ for the filing of a collector’s return by a collector ” after “ prescribed manner ”, and

(

c) by adding the following subsection:

(2) For the purposes of

section 186 (1) of the Act, the prescribed manner for the filing of a collector’s return by a person, other than a collector, referred to in

section 186 (1) (b), (

c) or (

d) of the Act is a manner set out in subsection (1) (b) (

i) to (iii) of this section.

Section 84 is amended

(

a) by renumbering the

section as

section 84 (1), and

(

b) by adding the following subsection:

(2) A person, other than a collector, who sells liquor by auction must provide the purchaser with a receipt, bill or invoice if requested by the purchaser.

Section 85 is amended

(

a) by renumbering the

section as

section 85 (1), and

(

b) by adding the following subsection:

(2) A person, other than a collector, who sells liquor by auction must show the tax imposed under the Act that is levied by the person in relation to the sale as a separate item on a receipt, bill or invoice provided if that person provides a receipt, bill or invoice in relation to the sale.

8 The following sections are added:

Records of holder of special occasion licence

88.1 A holder of a special occasion licence, other than a holder who is a collector, must keep records sufficient to furnish the director with the necessary particulars of sales of liquor under the licence.

Records of person who sells liquor by auction

88.2 A person, other than a collector, who sells liquor by auction must keep records sufficient to furnish the director with the necessary particulars of sales of liquor by auction.

Section 95 (1) and (2) is amended by striking out “

section 73 (a) ” and substituting “

section 73 (1) (a) ”.

Section 103 is amended

(

a) by striking out “ 84, 85, ” and substituting “ 84 (1) or (2), 85 (1) or (2), ”, and

(

b) by adding “ 88.1, 88.2, ” before “ 89 ”.

Schedule 4

Section 1 (1) of the Provincial Sales Tax Exemption and Refund Regulation, B.C. Reg. 97/2013, is amended by repealing the

definitions of “band” , “First Nation individual” and “Indian” .

Section 39 (5) is repealed.

Section 45 is amended

(

a) by adding the following subsections:

(0.1) In this section, “animal” means an animal

(

a) that is to be sold in the regular course of business, or

(

b) of a kind the products of which ordinarily constitute food for human consumption.

(3) The exemption under subsection (1) (

d) does not apply to the following:

(

a) sunscreen;

(

b) oral hygiene products;

(

c) toiletries, shaving products, depilatories and fragrances;

(

d) soaps and moisturizers, unless the soap or moisturizer is medicated and is advertised or marketed as a product for the treatment, mitigation or prevention of a particular skin condition;

(

e) hair or fur products, unless the product is medicated and is advertised or marketed as a product for the treatment, mitigation or prevention of fleas, ticks or lice;

(

f) grooming products and cosmetics. ,

(

b) by repealing subsection (1) (

a) and substituting the following:

(

a) feed obtained for use to feed an animal; , and

(

c) in subsection (1) by adding the following paragraphs:

(

c) vitamins and dietary supplements or adjuncts, in a form designed to be ingested orally, if the vitamins, supplements or adjuncts are obtained for consumption by an animal;

(

d) subject to subsection (3), drugs and medicines, including those in the form of salves, ointments, nasal sprays, inhalants, antiseptics, liniments, powders, germicides, laxatives, cough syrups and cold and flu remedies, that are

(

i) advertised or marketed as products for the treatment, mitigation or prevention of a disease or disorder in animals, and

(ii) obtained for use to treat an animal.

Section 60.1 is repealed.

Part 5 is amended by adding the following Division:

Division 6 – Refund for Production Machinery and Equipment

Construction or maintenance of road for mine site

120.1

(1) If the director is satisfied that

(

a) a person obtained machinery or equipment, other than by leasing the machinery or equipment as a lessee, and paid tax imposed under

Part 3 of the Act, other than Division 9 of that Part, in respect of the machinery or equipment,

(

b) the person, for commercial purposes, regularly engages in the exploration for minerals or the development of mines,

(

c) the machinery or equipment was obtained for use substantially and directly for the construction or maintenance of a road within what became the qualifying part of a mine site as a result of the development of a mine, and

(

d) the machinery or equipment would have been exempt under

section 96 or 97 of this regulation if what became the qualifying part of a mine site had been a qualifying part of a mine site when the person obtained the machinery or equipment,

the director must refund to the person the amount of tax paid in respect of the machinery or equipment.

(2) Subsection (1) does not apply if, within 15 days after the date of purchase or the entry date of the machinery or equipment, the machinery or equipment is used, or allowed to be used, other than substantially and directly for the construction or maintenance of a road within what became the qualifying part of a mine site as a result of the development of a mine.

(3) If a person

(

a) receives a refund under subsection (1) in respect of machinery or equipment, and

(

b) subsequently uses the machinery or equipment, or allows the machinery or equipment to be used, for a purpose other than for use substantially and directly for the construction or maintenance of a road within what became the qualifying part of a mine site as a result of the development of a mine,

the person must repay to the government an amount equal to the tax that would have been payable under

section 82 [tax if property used for new purpose] of the Act as if the tax were payable under that

section in respect of the use of the machinery or equipment, or the allowed use of the machinery or equipment, referred to in paragraph (

b) of this subsection.

(4) Subsection (3) does not apply if the person subsequently uses the machinery or equipment, or allows the machinery or equipment to be used, for a purpose for which that machinery or equipment would be exempt from tax under the Act if that machinery or equipment were to be used for that purpose.

Machinery or equipment leased for construction or maintenance of road for mine site

120.2

(1) If the director is satisfied that

(

a) a person leased machinery or equipment as a lessee and, in relation to a rental period under the lease, paid tax imposed under

Part 3 of the Act, other than Division 9 of that Part, in respect of the machinery or equipment,

(

b) the person, for commercial purposes, regularly engages in the exploration for minerals or the development of mines,

(

c) at the time the lease was entered into the machinery or equipment was leased for use substantially and directly for the construction or maintenance of a road within what became the qualifying part of a mine site as a result of the development of a mine, and

(

d) the person has not, before the end of the rental period, used that machinery or equipment, or allowed that machinery or equipment to be used, for a purpose other than

(

i) the particular purpose referred to in paragraph (

c) of this subsection,

(ii) for use substantially and directly for the construction or maintenance of a road in the qualifying part of a mine site, or

(iii) another purpose for which that machinery or equipment would be exempt under

section 96 or 97 of this regulation,

the director must refund to the person the amount of tax paid in relation to the rental period under the lease.

Section 122 is amended

(

a) in subsection (1) by repealing the definition of “PAC” and substituting the following:

“PAC” means a parents’ advisory council; , and

(

b) in subsection (2) by adding “ or a relevant school ” after “ a PAC ”.

7 Sections 125.4 (2) (

a) and 126 (1) (

a) and (3) (

a) are amended by striking out “

section 55 ” and substituting “

section 49, 50 or 55 ”.

8 The following sections are added:

Refund of tax paid by contractor

126.1

(1) If the director is satisfied that

(

a) a contractor purchased tangible personal property at a sale in British Columbia,

(

b) the contractor paid tax under

Part 3 of the Act in relation to the tangible personal property,

(

c) the contractor used the tangible personal property to fulfill a written contract under which the contractor was required to supply and affix, or install, affixed machinery or improvements to real property,

(

d) under the terms of the contract, the tangible personal property was used so that it ceased to be personal property at common law,

(

e) the other party who entered into the contract with the contractor is one of the following:

(ii) a person who would be exempt under the Act from tax imposed under

section 37 of the Act if the person were to purchase the tangible personal property;

(iii) a First Nation individual or band, and

(

f) in the case of a contract entered into with a First Nation individual or band, under the terms of the contract, title to and possession of the tangible personal property was transferred to the First Nation individual or band on First Nation land before the tangible personal property was used to fulfill the contract,

the director must refund to the contractor the tax paid under

Part 3 of the Act in relation to the tangible personal property.

(2) If the director is satisfied that

(

a) a contractor brought or sent into British Columbia, or received delivery of in British Columbia, tangible personal property,

(

b) the contractor paid tax under

Part 3 of the Act in relation to the tangible personal property,

(

c) the contractor used the tangible personal property to fulfill a written contract under which the contractor was required to supply and affix, or install, affixed machinery or improvements to real property,

(

d) under the terms of the contract, the tangible personal property was used so that it ceased to be personal property at common law,

(

e) the other party who entered into the contract with the contractor is one of the following:

(ii) a person who would be exempt under the Act from tax imposed under

section 49 of the Act if the person were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property;

(iii) a First Nation individual or band, and

(

f) in the case of a contract entered into with a First Nation individual or band, under the terms of the contract, title to and possession of the tangible personal property was transferred to the First Nation individual or band on First Nation land before the tangible personal property was used to fulfill the contract,

the director must refund to the contractor the tax paid under

Part 3 of the Act in relation to the tangible personal property.

Tangible personal property and software used after tax paid under tax payment agreement

132.1 If the director is satisfied that

(

a) a person paid tax under

Part 3 of the Act in relation to tangible personal property, or under

Part 4 of the Act in relation to software, in accordance with an agreement entered into under

section 32 of the Act,

(

b) the tax was payable on or before the date prescribed by

section 14 (a) (ii) or (b) (ii) of the Provincial Sales Tax Regulation, and

(

c) when the person became a user of the tangible personal property or software, other than in respect of the storing, keeping or retaining of the tangible personal property or software, the tangible personal property or software was used for a purpose for which the tangible personal property or software would have been exempt from tax under

Part 3 or 4 of the Act if that tangible personal property or software were to have been used for that purpose when the person

(

i) brought or sent into British Columbia, received delivery of in British Columbia, purchased or leased the tangible personal property, or

(ii) purchased the software,

the director must refund to the person the amount of tax paid in relation to the tangible personal property or software.

9 The following

section is added:

Refund at end of vehicle licence period

137.1 The amount of the refund under

section 74.2 (1) of the Act in respect of a vehicle for a vehicle licence period is the amount calculated in accordance with the following formula:

amount of refund = tax paid ×

months remaining

total months

where

tax paid

the tax paid under one or both of sections 69 [tax if multijurisdictional vehicle licensed] and 71 [adjustment of tax under

section 69] of the Act in respect of the vehicle for the vehicle licence period;

months remaining

the number of whole months left in the vehicle licence period at the time that the vehicle ceased to be licensed under the licence to which the prorating agreement applies;

total months

the number of whole and partial months in the vehicle licence period.

Schedule 2 is amended in Table 7 by adding the following item as indicated:

Item Tangible personal property for farm purpose

17.1

Natural gas heating systems obtained for use in providing heat for a greenhouse or nursery

Schedule 5

Section 22 (1) (

b) of the Provincial Sales Tax Exemption and Refund Regulation, B.C. Reg. 97/2013, is repealed and the following substituted:

(

b) the tangible personal property enters British Columbia within one year of the individual becoming a resident of British Columbia, and .

Schedule 6

1 The Provincial Sales Tax Exemption and Refund Regulation, B.C. Reg. 97/2013, is amended by adding the following section:

Refunds from Insurance Corporation of British Columbia

138.1

(1) If a person has paid to the Insurance Corporation of British Columbia an amount as tax under

section 69 of the Act that, as a result of a clerical error, is in excess of the amount of tax payable under that section, the Insurance Corporation of British Columbia may refund to the person the amount of the excess.

(2) If the director is satisfied that a person has paid to the Insurance Corporation of British Columbia an amount as tax under

section 69 of the Act that is in excess of the amount of tax payable under that section, the Insurance Corporation of British Columbia, on receiving notice from the director, may refund to the person the amount of the excess.

(3) The Insurance Corporation of British Columbia may refund to a person the amount of tax paid under

section 69 of the Act by the person in respect of a vehicle licence period if the person

(

a) licensed a vehicle in British Columbia under a licence to which a prorating agreement applies for the vehicle licence period,

(

b) paid tax under

section 69 of the Act to the Insurance Corporation of British Columbia in respect of the licence referred to in paragraph (a), and

(

c) cancels the licence referred to in paragraph (

a) before the licence comes into effect.

Schedule 7

1 The Provincial Sales Tax Transitional Regulation, B.C. Reg. 154/2013, is amended by adding the following section:

Section 27 of Act – valuation by director

1.11

Section 27 of the Act applies despite any other provision of the Act except sections 211 [appeal to minister] and 212 [appeal to court] of the Act.

Copyright © 2014: Queen's Printer, Victoria, British Columbia, Canada