Canada is bringing back exemption certificates. If you sell to Canada that is an important statement and it brings up a lot of questions. I wanted details but I was having trouble finding any information. I sent an email to British Columbia to inquire about the new certificates and how they are to be handled. Here is part of the email I received in response:
"British Columbia’s provincial sales tax (PST) will be re-implemented effective April 1, 2013, at a general tax rate of seven percent. The legislation and regulations to re-implement the PST on April 1, 2013 are now complete, giving businesses all the information they need to successfully transition to the PST. The final legislative amendments to the Provincial Sales Tax Act (PSTA) have received Royal Assent and the Provincial Sales Tax Regulation (PSTR) and the Provincial Sales Tax Exemption and Refund Regulation (the PSTERR) have been approved and will come into effect on April 1, 2013. To help businesses prepare, government is making unofficial consolidated versions of the PSTA, PSTR and PSTERR available on our website.
A person may purchase tangible personal property (goods) for resale by
i) providing their supplier with their PST registration number, or
ii) by providing a completed exemption certificate
New exemption certificates are currently under development and will be available prior to April 1, 2013."
As you can see, tax exempt entities are expected to complete an exemption certificate but no one has decided on what it should look like. You CANNOT use previous exemption certificate forms and the new ones have yet to be made available. Keep checking this site for updates, as the changes are only two weeks away.
I have made inquiries about procedure for other provinces, such as Manitoba, and I will post updates as details emerge.
Other recent “Exemption Certificate Mgmt.” posts by Silvia Aguirre:
- Exemption Certificates for Federal Government Purchases
- Marketplace Fairness: What Does It Mean For Exemption Certificates?
- Will Oregon Start Charging Sales Tax? If So - Are You Ready?
- Canada is Bringing Back Exemption Certificates!
- Louisiana Changes State Forms to Include Parish Exemptions
Note: Silvia Aguirre is no longer accepting new comments or questions. More recent "Exemption Certificate Mgmt" posts by Michael Fleming (of Peisner Johnson) are still active. Also use the Site's SEARCH bar to locate other helpful information.