Did You ‘Use’ That?: Interpreting B.C.’s PST Legislation

The way the B.C. Provincial Sales Tax (PST) legislation is worded, PST is required to be paid on property that is "used" within B.C. But what does "use" mean? Basically, if a person acquires something in B.C. and does anything other than ship it directly outside of the province, it will most likely be considered to be used in B.C. "Use" is defined so broadly, it is nearly impossible to escape.

Consider this scenario: You manufacture windows and doors in B.C., ship them to your customers in Saskatchewan and install the windows and doors for your customers (either with your own employees or with subcontractors).

Even though you manufactured these items with the sole purpose of sending them outside of B.C. to be installed for a customer, you are required to self-assess B.C. PST on all the material costs. Why? Because you are considered to have "used" the materials in your manufacturing process. Your cost of doing business just increased by 7%. To add insult to