One of the most frequent questions we get is in regards to PST and software. The Provincial government has put out PST Bulletin 105 to address this. This Bulletin defines software ” …means a software program that is delivered or accessed by any means, or the right, whether exercised or not, to use a software program that is delivered or accessed by any means. Examples of software include source code, executable code,operating system software, application software, “apps” and gaming software….”
Are you involved in any of this? If so, you may have to register for PST. The purchase of software has PST on it. That means if you are *selling* software to someone in BC, you may be charging PST unless a specific exemption applies. Exemptions cited in this Bulletin include “…Exemptions for software under the previous PST will be reimplemented with the PST, including but not limited to, exemptions from tax on software in the following circumstances. Custom and custom modified software; Software used for the purpose of being processed, fabricated, manufactured or incorporated into: other software for the purpose of retail sale, or goods for the purpose of retail sale or lease. Services provided to software, including installation and modification services,will not be subject to PST…”
for More information, check out Bulletin 105.
