To: Deans, Department Heads, Directors and Administrative Assistants
From: Tracey McHardy, Manager - Taxation
Date: June 29, 2000
Re: Provincial Sales Tax ("PST") - Changes effective July 1, 2000
In March of this year, the Saskatchewan government announced changes to the Education and Health Tax Act that will expand the amount of goods and services subject to PST. Certain changes were effective March 30, 2000 whereas other changes are effective July 1, 2000. An earlier memorandum highlighted the changes effective March 30, 2000; this memorandum may be viewed at the following web site:
Effective July 1, 2000, the goods and services listed below will be subject to PST (subject to the transition rules).
- Advertising services
- Professional services
- Computer consulting
- Commercial Building cleaning services
- Employment placement services
Research services, investment consulting, business management consulting and educational seminars will not be subject to PST.
PLEASE ENSURE THAT ALL PERSONNEL INVOLVED WITH THE SALE AND ACQUISITION OF GOODS AND SERVICES ARE MADE AWARE OF THESE CHANGES.
Saskatchewan Finance has released and updated its interpretation bulletins to consider the PST changes effective July 1, 2000. The updated interpretation bulletins are located at the following web site:
All units that provide or acquire taxable goods and services are strongly advised to review the bulletin(s) relevant to their unit. Units on campus that provide such goods and services to external clients must now charge the 6% PST. Units on campus that acquire such goods and services will need to be aware and plan for this cost within the budget plans.
The changes will only affect billings to EXTERNAL clients, which include students and most 9-ledger FRS accounts. Charges to FRS accounts in the range of 9-14000 to 9-15000 are to be treated as internal. Internal billings are exempt from PST with the exception occurring when the good or service 'resold' is acquired PST-exempt or manufactured internally.
Sales to the federal government department or agencies are exempt from the PST. Sales to the federal Crown corporations and provincial government departments, agencies and Crown corporations are subject to PST.
After reading the relevant information bulletins, if you have specific questions about the changes, please contact the writer at 966-2461 or via email email@example.com.
Tracey McHardy, C.A.
Manager - Taxation