Accountant for Vancouver businesses

GST and PST are two different systems

British Columbia is not harmonized: it had the HST from July 2010 to March 2013, then returned to a separate GST and PST. A Vancouver business charges 5 percent GST federally and 7 percent provincial sales tax separately, and PST does not work like GST. There is no broad input tax credit mechanism, so PST paid on inputs is often a real cost rather than something recovered on the next return.

That distinction changes how purchases should be recorded and how pricing is set. HBT keeps the two apart in the books so the GST return is filable without hand adjustment and the PST position is visible rather than buried in expenses.

What a Vancouver engagement covers

How the work begins

1. 1

   Step 1: Check both registrations

   Federal GST and provincial PST, and what is current on each.

2. 2

   Step 2: Scope and price agreed

   In writing before any paid work begins.

3. 3

   Step 3: Clean monthly close

   Both taxes reconciled each period rather than untangled at year end.

How is BC PST different from GST for a Vancouver business?

GST is federal at 5 percent and generally recoverable on business inputs through input tax credits. BC PST is provincial at 7 percent, filed separately, and does not have the same broad input tax credit mechanism, so PST paid on many purchases is a cost rather than a recoverable amount. The two have to be tracked separately in the books.