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PST TRANSITION DETAILS


As you know, rules surrounding PST taxation on construction services will change on April 1.  

At this point, officials from Sask Finance readily admit they haven't developed all the regulations and answers to the many questions our industry will have about the new regulations.  However, we can provide you with some very basic steps to help you prepare for the transition:

 
PST REGISTRATION
All contractors will now need to be registered to collect PST:
  • If you aren't already registered as a vendor for PST, do so immediately.  You can register online at this LINK.
  • If you are registered for PST, ensure your license is changed to that of a VENDOR.  Sask Finance will be sending out letters advising that you will be converted to vendor status by April 1.  To check to see if you are already registered as a vendor, click HERE.

INVENTORY
If you carry inventory, take stock and value your inventory as of March 31, 2017.  Those items will be PST paid and if you are charging PST to your customers, you can claim a PST credit for that inventory.


CONTRACTS
Ensure you know the date your contract has been signed .  
  • Contracts signed before April 1 fall under the existing guidelines - PST is not charged to the end user but is paid on materials used for completion.  
  • For contracts prior to April 1, this same exclusion applies for change orders up to 10% of the value of the contract even if they are conducted after April 1.
  • Contracts on April 1 or later fall under the new guidelines - PST is charged to the end user but not paid on input materials. 

CUSTOMERS AND SUB CONTRACTORS
Make sure you understand who your customer is because that will determine whether or not you are charging PST on your invoice.  
  • If your customer is the end user, then you will charge PST, and buy your materials PST exempt. 
  •  If your customer is NOT the end user, then you will NOT charge them PST, and buy your materials PST exempt.


EDUCATION AND INFORMATION
Sask Finance is committed to working with our industry to ensure this transition is carried out in as least disruptive way as possible.  
  • Regulations and bulletins are being uploaded on a regular basis.  Click HERE for the latest information from Sask Finance. 
  • If you have a particular situation that is not covered by the published guidelines, you can request a written ruling from Sask Finance.  These rulings are usually provided within a week and will provide documented protection to you in case of future audits. 
  • Sask Finance officials have stated that they will be providing public information sessions to answer questions.  We will keep you updated on the location and timing of those sessions.
  • If you have questions about a particular situation, contact Sask Finance directly at 1-800-667-6102 or sask.tax.info@gov.sk.ca