In our last post, we told you about the PST rate increase that happened on March 23, 2017. In announcing this increase, Saskatchewan outlined two other dates that you need to be aware of.
APRIL 1, 2017
- Effective April 1, 2017, chances are the value of a trade-in will not deductible from the purchase price of your new vehicle before applying PST. Instead, it will be treated like cash. This change applies to new “Eligible Light Vehicles”; a term that Saskatchewan introduced in the Budget. It is generally defined to mean Cars, SUVs, Light Vans, and Light Trucks. Trade-ins may be deducted from the purchase price before calculating PST on these vehicles for written agreements entered into before April 1, 2017.
- Eligible USED light vehicles will not be subject to Saskatchewan PST provided PST was paid in full on the original sale after April 1, 2017.
- Services provided to real property in Saskatchewan will be subject to PST at a rate of 6% ON OR AFTER APRIL 1, 2017. This tax will apply on the amount BEFORE GST. Examples of the types of services that will become subject to PST include construction, alteration, repairs, erection, remodelling, improvements or any other service provided in relation to real property.
JULY 1, 2017
- Equipment Warranty Insurance Contracts sold in Saskatchewan become subject to PST at a rate of 6%. Repair services provided under these types of contracts are also subject to PST.
- Insurance contracts become subject to Saskatchewan PST at a rate of 6%. This includes automobile insurance. The tax will not apply to contracts of reinsurance, self-insurance, annuity contracts, contribution or premiums paid under the Canada Pension Plan, Employment Insurance Act (Canada), The Workers Compensation Act or insurance
contracts purchased by Status Indians, or Indian Bands for on-reserve property or activities. The tax will apply to applicable premiums that are due on or after July 1, 2017, regardless of when the contract was entered into.
Are you ready?