BC PST Services

BC PST Audit Services

There could be several reasons for an audit to be triggered, including:
• Filing of a named ruling request by a taxpayer
• Refund claimed by a taxpayer
• Amounts reported in the returns do not follow the usual trend
• Information received by the ministry (e.g., registration of pleasure vessels from Transport Canada)

During the audit, the auditor is typically looking for:
• Transactions where the taxpayer has not paid BC PST on taxable revenues
• Import transactions such as software purchased from non-BC providers where the BC resident/business must self-assess BC PST
• Incorrectly applied exemptions

The audit process for BC PST consists of:
• Audit begins with a letter requesting basic business information, including:
– List of capital assets procured
– Sales listing
– Listing of certain services such as software, legal services, telecom services, and services relating to goods (repair, maintenance, etc.)
• Auditor selects samples from the listings and requests supporting documents
• After review, the auditor provides a summary of the audit with identified errors and explanations of legislative requirements
• Taxpayer has 90 days from the decision date to file an appeal

Based on our experience, BC PST audits often take extended periods to conclude (e.g., an audit for March 2015–March 2018 concluded in 2021). Unlike GST/HST, the Ministry does not automatically register unregistered taxpayers — taxpayers must register independently if required.