Is PST payable on Labour?
A contractor engaged in services to real property is required to collect PST on the total charge to the customer for the services, including all related charges and fees such as charges for labour, materials, transportation, insurance, service fees, and any tax, levy or duty, other than the GST.
What is PST in B.C. charged on?
Unless a specific exemption applies, you must charge, collect and remit PST on sales or leases of goods, sales of software, sales of accommodation and sales of related services, legal services and telecommunication services in B.C. This includes sales and leases outside the ordinary course of your business, including …
Is B.C. PST refundable?
If you overpaid provincial sales tax (PST) or paid PST in error, you may be eligible for a refund of the PST you paid.
Can I live in one province and work in another?
What if I live in one province or territory, and work in another, or have paid taxes in two or more provinces? When it comes time to file your income tax, it doesn’t matter if you live in one province or territory and are employed and pay taxes in another.
Is PST recoverable?
PST is separate and in addition to the GST. Generally, PST is invoiced by the supplier of goods or services, then collected from the customer, and remitted to the tax authorities. The PST imposed by British Columbia and Saskatchewan is not a recoverable tax. Learn more about PST for British Columbia and Saskatchewan.
What services are PST exempt in BC?
Some goods and services aren’t taxed under PST, such as:
- Sales and rentals of real property (e.g. house, commercial property)
- Public and private campsites.
- Admissions and memberships.
- Professional services (other than legal services)
- Transportation fares (e.g. bus, train, ferry, airline)
Are you taxed in the province you live or work?
When it comes time to file your income tax, it doesn’t matter if you live in one province or territory and are employed and pay taxes in another. You file your income tax for the province or territory in which you reside on December 31 of the tax year.
How much does an employer pay in taxes for an employee in Canada 2020?
The tax wedge is a measure of the tax on labour income, which includes the tax paid by both the employee and the employer. The tax wedge for the average single worker in Canada decreased by 0.1 percentage points from 30.5% in 2019 to 30.4% in 2020. The OECD average tax wedge in 2020 was 34.6% (2019, 35.0%).
How do taxes work if you work in a different province?
How much does an employer pay in taxes for an employee in Canada 2021?
Employers are responsible for deducting the following four amounts: the Canada Pension Plan contribution….How much do you have to deduct?
| 2021 payroll deduction rates | |
|---|---|
| Program | Rate paid by employer |
| Canada Pension Plan | 5.45% |
| Employment Insurance | 2.21% (1.68% in Quebec) |
When do you have to charge and collect PST in BC?
Charging & Collecting PST. Businesses that are required to register must charge and collect tax at the time the tax is payable, unless a specific exemption applies to the sale or lease. PST generally applies to: the purchase or lease of new and used goods in B.C. goods brought, sent or delivered into B.C. for use in B.C.
When do I charge PST on delivery charges under a lease?
You charge PST on delivery charges that are mandatory under a lease agreement. In addition, optional delivery charges are taxable when taxable goods are leased outside BC and are shipped to the lessee in BC. You charge PST even if these charges are separately stated on the invoice because the charges form part of the lease price for the goods.
What delivery charges are taxable in BC?
Taxable Delivery Charges You charge PST on delivery charges that are mandatory under alease agreement. In addition, optional delivery charges are taxable when taxable goods are leased outside BC and are shipped to the lessee in BC.
Who pays the PST for contractors?
You’re also considered a contractor if you make retail sales of goods and then install those goods into buildings or land. Who Pays the PST. When you’re a contractor, you pay the PST on any taxable goods you use to fulfil a contract and you generally don’t charge your customer the PST.
