"Primarily" means 50% or more of the time.įarm equipment and machinery means "implements of husbandry" as defined in Revenue and Taxation Code section 411. The farm equipment, machinery and parts must be used primarily in producing and harvesting agricultural products.
The partial exemption certificate should be retained for a period of not less than four (4) years.Ī purchaser who provides a partial exemption certificate to a retailer and who makes any use of the diesel fuel other than for farming activities or in food processing, will be liable for the 5.00% tax, plus interest and applicable penalties. Farming activities also include the transportation and delivery of the commodity to the marketplace.Ī retailer will be relieved from the liability for the sales or use tax subject to the partial exemption if they take a partial exemption certificate timely and in good faith, from purchasers stating the property will be used in a qualifying manner as provided under section 6357.1. Farming activities means a trade or business involving the cultivation of land or the raising or harvesting of an agricultural or horticultural commodity for commercial purposes. Partially exempt from the sales and use tax is diesel fuel consumed during the activities of a farming business or in food processing. Sales and purchases of diesel fuel used in farming activities or food processing will continue to be subject to the remaining portion of the sales and use tax rate consisting of the local, city, county and any applicable district taxes. If you don't want to use eTaxBC, you can file and pay using these downloadable forms.A partial exemption from sales and use tax became available under section 6357.1 for the sale, storage, use, or other consumption of diesel fuel used in farming activities or food processing. Publications | Forms | Webinars and videos | eTaxBC help guide | Refunds | Audits | Appeals | FAQsĮTaxBC is the easiest and fastest way to file your return and pay your taxes. To learn more about the PST, such as what's exempt from PST or how PST applies to different types of businesses, refer to our resources: Generally, the rate of PST is 7% on the purchase or lease price of goods and services, with some exceptions.
Report and pay the PST you collect and the PST you may owe on items you use in your business.Charge and collect PST at the time the tax is payable, unless a specific exemption applies.
If your business is required to register, you must: for use in B.C., unless a specific exemption applies.įind out if your business is required to register to collect PST. provincial sales tax (PST) is a retail sales tax that applies when taxable goods or services are purchased, acquired or brought into B.C.