Construction PST Update

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

Quick Links:

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


  • 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.



  • 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.



  • 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.



  • 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.

10% RULE 

  • The 10% change order rule will remain for new projects. However, for existing structures undergoing alterations, the percentage for change orders will move to 25%.



  • The project sunset date will not be a pre-determined date, but rather it will be the anticipated completion date specified when the project applies to the Registry.


  • Rules for remitting PST will mirror those set up for GST in an attempt to provide some cash flow relief due to the lengthy collection period.


  • The definition of consumables, which are not PST exempt, has been clarified with examples. Materials such as dimensional lumber, plywood and similar building materials used on site for bracing or to build forms can be now purchased tax exempt.


  • Projects initiated before March 31 must be registered by completing the Project Registry Application Form. This registration will allow contractors to obtain official ruling of a project's eligibility to fall under the "old rules" and will provide some degree of protection and clarity in the case of future audit. If owners/contractors choose not to register a project, they will need to reach out to the Ministry to establish a reasonable sunset date for that project.


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
  • 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.