News & Insights

BC Updates Bulletin on Motor Vehicle Dealers and Leasing Companies

Tax Development Nov 23, 2017

British Columbia Updates Bulletin on Motor Vehicle Dealers and Leasing Companies and Issues Notice for PST on Clean Energy Vehicle Program Rebates

 The Government of British Columbia has updated BC PST Bulletin 116, “Motor Vehicle Dealers and Leasing Companies” and has released BC PST Notice 2017-005, “PST on Clean Energy Vehicle Program Rebates”.  Both documents outline a change to how PST is calculated on vehicle purchases and leases qualifying under the Clean Energy Vehicle Program (“CEV”).   Effective December 1, 2017, rebates received under the CEV Program will not reduce the purchase price for purposes of calculating the PST.  The CEV rebate is a provincial program, whereby a motor vehicle customer will receive a rebate from the provincial government at the time of purchase or lease of a qualifying new battery electric, fuel cell electric or plug in hybrid electric vehicles. 

In addition, the PST bulletin also indicates that a customer can apply for a PST refund in the event that they return a vehicle to the manufacturer as a result of an independent, third-party dispute resolution process.  In this situation, the manufacturer is not permitted to refund the customer the PST.

Finally, the bulletin includes minor revisions, including what is considered in the purchase or lease price of a motor vehicle, various rules concerning trade-ins, and purchases by First Nation customers.