|To:||Deans, Department Heads and Administrative Assistants|
|From:||Tracey McHardy, Taxation Manager|
|Date:||October 31, 2006|
|Subject:||PST - Rate Reduction to 5% (effective October 28, 2006)|
Effective October 28, 2006, the PST rate was reduced to 5%.
Units on campus that provide PST-taxable goods and services must ensure client invoices reflect the appropriate PST rate. To determine the appropriate rate, refer to the transitional rules below.
As well, units on campus must ensure vendors are charging the university the appropriate PST rate. This may require tracking of receiving dates for PST-taxable goods; the invoice due date for PST-taxable services and in limited cases, it may be necessary to determine an appropriate prorate (e.g., leased equipment, electrical usage). To determine the appropriate rate, refer to the transitional rules below.
For significant purchases, where the vendor has not charged the appropriate PST rate, your unit must contact the vendor and ask for a credit note. For example, if you placed an order on October 25, 2006; the goods are shipped on Thursday October 26, 2006 but the university does not receive those goods until November 1, 2006. In this example, PST should be at 5% as the goods are not received until after mid-night on October 27, 2006. If the vendor's invoice reflects PST at 7%, a credit note should be requested. We strongly recommend the credit note option rather than the vendor issuing an amended invoice (to reduce the chance of paying both invoices).
The PST reduction will also affect items purchased on the PCard.
Payment Services will send out a separate communication to units that provide feeds into Uni-Fi to manage the data entry of invoices which can have old or new PST rates.
The transitional rules depends on whether the transaction relates to a good or service.
There has been no change to the types
of goods and services subject to PST and the Saskatchewan liquor
consumption tax remains at 10%.
Saskatchewan Finance has further information (including answers to common questions) on its website at: http://www.gov.sk.ca/finance/revenue/news.htm
If after reading the information on Saskatchewan Finance's website you still have questions, please do not hesitate to contact me.
Ms. T. McHardy, CA