University of Saskatchewan

Financial Services Division (FSD)

Provincial Budget 2000 - Provincial Sales Tax ("PST")


To: Deans, Department Heads, Directors and Administrative Assistants

From:  Laura Kennedy, Associate Vice-President (Financial Services)

Date:  March 30, 2000

Re:  Provincial Budget 2000 - Provincial Sales Tax ("PST")


Yesterday, the Saskatchewan government announced changes to the Education and Health Tax Act that will expand the amount of goods and services now subject to PST. Units on campus that provide such goods and services to external parties must now charge the 6% PST on all sales to external clients. Units on campus that acquire such goods and services will need to be aware and plan for this cost within budget plans.

PLEASE ENSURE THAT ALL PERSONNEL INVOLVED WITH THE SALE AND ACQUISITION OF GOODS AND SERVICES ARE MADE AWARE OF THESE CHANGES.

Below is a summary of the additional goods and services that will be subject to PST. There are certain exceptions to the listing below. For this reason, units that provide or acquire such goods and services are strongly advised to also refer to the attached information bulletin. The web site for this general bulletin is http://www.gov.sk.ca/finance/revenue/pst/pstindex.htm.

Effective March 30, 2000 the following goods and services will be subject to PST:

Transition Rules:

The following transition rules apply to goods and services that became taxable on March 30, 2000:

 Additional Changes:

In addition to the above changes, effective July 1, 2000, the following goods and services will be subject to PST: (contracts signed before March 30, 2000 will be treated as outlined above under the section on transition rules)

A communication will be sent out in early June to clarify the definition of advertising and consulting services.

Information Sources:

For your information, the web site that provides all of the Saskatchewan Government's revised interpretation bulletins is http://www.gov.sk.ca/finance/budget/budget00/tax.htm.

After reading the relevant information bulletins, if you still have specific questions about the changes, please contact Tracey McHardy, Manager, Taxation at 966-2461 or via email tracey.mchardy@usask.ca.

Yours truly,

Laura Kennedy, C.A.

Associate Vice-President (Financial Services)