Construction PST Update

On April 1, 2017, PST will apply to construction labour services in Saskatchewan.


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These are the steps you need to take today and things you need to know now: 

PST REGISTRATION 
 

  • Ensure you are registered as a PST vendor.  You can register online.
  • If you are already registered, the Ministry of Finance will be sending letters advising of required changes shortly.

     

CONTRACTS
 

  • April 1, 2017 is a hard cut-off: contracts signed before this date will remain tax exempt with caveats for a cumulative maximum 10% change order price increase per project and exclusion of ongoing service contracts, among others.

     

OWNERS
 

  • PST is only charged to end users, so understand who you are billing and charge accordingly.  
  • If your customer is a General Contractor or another trade contractor, and they are the end customer, you do not need to charge PST. When billing consultants it will depend on the contract.

 

SUPPLIES & INVENTORY


  • After April 1, 2017, contractors will be able to purchase supplies PST exempt. The PST will be paid by the end user when they are billed further down the chain.
  • If you carry inventory, take stock and value your inventory as of March 31, 2017.  Those items will be PST paid and if you are charging PST to your customers, you can claim a PST credit for that inventory.
 

MINISTRY OF FINANCE MEETING

 
The SCA Advisory Council and partner associations met with senior officials from the Ministry of Finance today. The meeting was considered successful and productive by both sides. Key items you should be aware of coming out of that meeting:
 
  • The government is providing informational bulletins here. You can subscribe to specific bulletins to receive automatic notifications when they are updated. We have included bulletins relevant to our industry under the Bulletins tab.
  • Contractors can contact the government with questions directly at 1-800-667-6102 or  sask.tax.info@gov.sk.ca.
  • If you have a concern that will impact a business decision and your answer is not in a bulletin you are encouraged to ask for a written ruling from the Ministry of Finance. These rulings will typically be made within a week and are binding, so offer protection for your business.
  • The Ministry and the industry have formed an ad hoc committee to work on transition rules and manage details of the implementation. If you cannot find the answer to your concerns in the bulletins, contact the SCA to submit your query to the committee. 
  • The Ministry has also committed to information sessions across Saskatchewan which will be organized through the ad hoc committee.
 
As of today, the Ministry of Finance is not certain of some issues and you are not alone in wanting more information. But some of the answers our industry needs are dependent on decisions that haven't been made yet.  We are fully engaged to ensure these decisions are made with your concerns in mind.

Note: The SCA does not claim to be an expert in taxation. Any information we share is third party, and we suggest that you contact the Ministry of Finance directly for specific questions.
 

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