After considerable effort, the PST Transition Committee is happy to announce that the final remaining PST-related issues have been resolved with Sask Finance and updated Information Notices have been released.
Here are the highlights of these final updates:
10% Rule - the 10% change order rule will stay in effect for NEW projects. However, for existing structures undergoing ALTERATIONS, the percentage for change orders will move to 25%.
Sunset Date for "Old Rules" Projects - the project sunset date will not be an pre-determined date but will instead be the anticipated completion date specified when the project applies to the Registry.
Remittance of PST - rules for remitting PST will mirror those set up for GST in an attempt to provide some cash flow relief due to the lengthy collection period.
PST on Consumables - the definition of consumables, which are NOT PST exempt, has been clarified with examples. Materials such as dimensional lumber, plywood, and similar building materials used on site for bracing or to build forms can now be purchased tax exempt.
It is important that projects that were initiated prior to March 31 become registered with the Project Registry by completing the Project Registry Application Form . This registration will allow contractors to obtain official ruling of a project's eligibility to fall under the "old rules" and will provide some degree of protection and clarity in the case of future audit. If owners/contractors choose not to register a project, they will need to reach out to the Ministry to establish a reasonable sunset date for that project.
While these changes may not be what we had hoped for, they do represent significant movement from the Ministry's original position. We extend our thanks to their officials for working with the Transition Committee in a collaborative and professional way.
Following are the links to the updated Information Notices: