Why PST for a service?

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  • Updated 3 years ago
  • Answered
PST is supposed to only be charged for a physical product delivery and NOT for a service - which this is. A service should only be charged GST (5%) and NO PST. I have confirmed this with Revenue Canada as well as the BC Provincial tax authorities.

Why is Koodo still charging PST for a non-physical product?
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Pesi

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Posted 3 years ago

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Bernard, Official Rep

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Well, we wouldn't charge the PST if we didn't have to Pesi. However, the following is what the BC provincial government requires companies to collect on.

"You must charge, collect and remit PST on sales or leases of taxable goods, sales of software and sales of taxable services (i.e. related services, accommodation, legal services and telecommunication services) in BC."
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Pesi

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No need to get snippy with me please!
I run a small service business and I don't have to charge PST for my services so I assumed it was the same.
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Mitchell Palmater

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Your original post had a fair bit of snip.
I also believe bernard got you all the information that you were asking for.
Maybe a thanks would be appropriate.
=D
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Ahmad

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Lol right?! How ridiculous
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Raza

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PesiĀ  Here is what it says http://www.sbr.gov.bc.ca/documents_library/bulletins/pst_107.pdf

Mobile or Cellular Devices

Generally, PST applies to services for mobile devices (e.g. mobile phones, smart phones and tablets) if the mobile device is ordinarily located in BC. PST applies to the total purchase price, including any activation fees, charges for local air time, long distance calls, texts, monthly access charges, call display and voicemail.

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Pesi

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Thank You Raza for the polite reply. Much appreciated. I guess Koodo's official reps could take a lesson from you in communication with clients.
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Ahmad

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Pesi, there was nothing wrong or snippy about Bernard's reply.

In fact, you were the one coming into this community blowing steam out of your nose accusing koodo of ripping off it's customers. And you own a small business? I would not do business with anyone who talked the way you are.

You are upset because the fact that you were wrong and to perfectly fair, you were embarassed. Because anyone seeing this thread would laugh with how aggressive you were and how you were shut down so easily, with a very polite reply.
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Pesi

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right!!!!!!!!
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Makkahn Mack

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At least You don't have to worry bout the Horrible HST(Harper's Sales Tax), We In Ont do, and that is Horrific. KST(Kood's Sales Tax) TST(Tel Us Sales Tax) BST(Bell's Sales Tax) we all can agree, Pluck the Tax, Slip-in the Savings

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