PST Exemption on Parts & Services for MJVs
The Ministry of Finance has recently clarified what information is necessary in order for multijurisdictional vehicles and trailers used solely with MJVs to receive PST exemptions for parts and services.
PST Exemption - Businesses that provide services or parts for a customer’s MJV or trailer used solely with an MJV must receive and record the customer’s prorate account number on the bill, invoice or receipt to provide them with a PST exemption. The prorate account number is included on the vehicle’s cab card, issued to the carrier by ICBC. For customers from outside BC, the prorate licensing authority for your customer’s jurisdiction issues the cab card. Service providers and vendors cannot accept any other form of information (e.g., a licence plate number) or documentation in providing an exemption for services or parts.
Charge and Collect PST - If a carrier does not provide the service provider or vendor with a prorate account number at the time of sale, the service provide or vendor must charge and collect PST.
If the ministry audits the sales records of the service provider or vendor and finds they have provided carriers with an exemption without recording their prorate account number as explained above, penalties and interest may apply. Occasionally, a vendor unaware of these PST exemptions for MJV vehicles and trailers used solely with a MJV may refuse to give them, even when carriers provide a prorate account number. When this happens, carriers may apply for a refund from the ministry.
For more information on how PST applies to MJVs and for a link to the original PST Notice, please see Vehicle Services & Parts PST Exemption for MJVs by the BC Trucking Association (June 5, 2016).
Tia Chisholm, HUB International TRANSPORTATION
HUB International TRANSPORTATION specialists are based in Vancouver. Our longstanding relationship with the best providers in the business allow us to deliver the solutions that serve you best. With HUB, you can run your business knowing that you are headed in the right direction.