Saskatchewan PST rate increase effective immediately

On March 22, 2017, the 2017-2018 Saskatchewan Budget was tabled.

Effective March 23, 2017, the Provincial Sales Tax (PST) rate in Saskatchewan has increased from 5% to 6%. All Saskatchewan PST registrants should implement this change immediately.

Also, the following changes were made to the Saskatchewan PST rules, effective April 1^st 2017:

• Children’s clothing, restaurant meals and snack food will be subject to PST;
• The value of vehicle trade-in allowances will no longer be deductible when determining the PST payable on new vehicle purchases made in the province of Saskatchewan;
• PST will apply to contracts for the repair, renovation or improvement of real property.

Finally, effective July 1^st, 2017, all insurance premiums that insure individuals residents in Saskatchewan or property located in Saskatchewan, will be subject to PST.

About the Author

Jean-François Senécal, LL.B., D. Tax, is a Tax Manager at Crowe BGK.

Connect with him: [email protected]