If you aren’t Canadian, then you may be wondering why on earth you need a British Columbia sales tax calculator. But sales taxes in Canada are quite tricky and confusing. Sales taxes differ from one province to the next.

In particular, there are several provinces or territories with unique sales tax percentages and rules such as: British Columbia, New Brunswick, Newfoundland, Nova Scotia, and the Northwest Territories.

Who do these sales taxes affect, who’s authorized to charge them, and who’s exempt from them? We’ll tell you everything you need to know in our British Columbia sales tax calculator article. 

What’s the difference between PST and GST?

One of the things you may encounter when looking for a decent British Columbia sales tax calculator are terms like “PST” or “GST”. But what do those mean? 

PST stands for “Provincial Sales Tax”, and it’s a sales tax of 7% that’s exclusive to the province of British Columbia. 

GST stands for “Goods and Services Tax”, and it’s a sales tax of 5%  charged by the federal government. 

Both of these taxes are accounted for when you use a British Columbia sales tax calculator, which is convenient because you don’t have to keep track of how much each one is yourself. 

Exemptions and rebates for the British Columbia PST

Another important thing to keep in mind when using a British Columbia sales tax calculator is which products and services are exempt from the Provincial Sales Tax (PST). Here’s a list of things that receive rebates or are exempt from the PST: 

• Food of any sort, which includes both food that’s already been prepared and grocery items
• Magazines, books and newspapers
• Certain items for children, like clothing, car or booster seats, or shoes
• Bicycles
• Prescription medications, home medical aids or devices, and many other health products or products used for medical purposes
• Services for pets, such as veterinary services
• Children’s school supplies
• Different types of safety equipment and clothing for protection
• Products for farming, aquaculture or fishing (such as fertilizers)
• Any purchases made by First Nations peoples on reserved land
• Anything that’s sold as resale products or sold on lease
• Used vehicles with zero emission

You can find out more about exemptions here.

The PST and first nations individuals

For the uninitiated, “First Nations Individuals” is the term used for Indigenous peoples in Canada. Sometimes the term “Aboriginal people” is used instead, and both are pretty much interchangeable.

The Canadian Constitution actually recognizes three different groups of Indigenous peoples: Inuits, Metis and what it refers to as “Indians”, which we now call “First Nations Individuals”. 

First Nations individuals are exempt from the PST when they make purchases on reserved land. There are even exemptions for home improvement purchases and special event liquor sales if the purchases and permits are purchased on reserved land. 

Here’s a link where you can get more information about PST exemptions for First Nations Individuals.

Differences in rebates and exemptions to GST

You’ll remember that the GST is a 5% federal sales tax, and there are two different categories when it comes to exemptions: zero-rated goods and services, and direct exemptions.

These exemption categories only effect the businesses that provide the services, not the consumer. So, unless you’re a business owner this section doesn’t apply to you, except for educational purposes. 

Zero-rated goods and services 

• Grocery products like meat, eggs, dairy products, fish, cereal, vegetables, tea and coffee. Sometimes things like liquor, snack foods and carbonated beverages are charged sales taxes. 
• Prescription medications. However, over-the-counter medications aren’t considered zero-rated.
• Feminine hygiene products
• Medical devices

Goods and services that are exempt from GST: 

• Sale and resale of residential property that’s already been used or owned
• Rentals that last longer than a month
• Any educational services that are either required for practice, or result in diplomas or certificates
• Dental and medical services
• Legal aid
• Financial services (like bank fees)
• Daycare services for children

British Columbia revenues from PST

If you’re just learning about PST and how to use a British Columbia sales tax calculator, then you may wonder how much revenue the province receives from the PST. These figures are difficult to find, but in 2019 revenue from PST in British Columbia was projected to reach around $7.586 billion.

In 2022 when it instituted a new rule that required online merchants to charge both GST and PST, the government predicted that it would receive around an extra $100 million that year and $120 million this year (2023).

Even before those new changes, the PST raked in more than corporate income taxes and property taxes in the province combined. 

Federal revenue from GST

If you’re new to sales taxes and using a British Columbia sales tax calculator, then it should be interesting to learn how much revenue the federal government makes from the GST annually. 

In 2021 it was reported that the federal government received $37.1 billion in both GST and HST (Harmonized Sales Tax). 

British Columbia sales tax calculator

If you’re looking for a solid sales tax calculator, you’ve come to the right place. 

For a straightforward approach to sales tax calculators, check out the sales tax calculator from Hellosafe. You just enter the price of the product and it will automatically calculate both the GST and PST of the product for you, and provide you with a total estimated price. You can even do a reverse sales tax calculation. 

This British Columbia sales tax calculator from Wowa is a bit more straightforward. Just input the amount before taxes, and it will tabulate both the GST and the PST and provide you with the amount after taxes in a clear and concise way.

Like Hellosafe’s calculator, you have the option to use a reverse sales tax calculation, which tells you the amount of a product before sales taxes. The difference is that the way these figures are displayed by Wowa is more clear.

There’s really not a way to confuse exactly how the calculator got the sum it did, which is nice. 

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• British Columbia Income Tax Calculator
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