Point-of-Sale Rebates

A point-of-sale rebate of HST is similar to a PST exemption in that it is an instant rebate of tax – purchasers do not pay the 7 per cent provincial portion of the HST on the item at the time of purchase. The purchaser only pays the 5 per cent federal portion of the HST.

B.C. is providing point-of-sale rebates for the provincial portion of the HST on:

• motor fuels
• books
• children-sized clothing and footwear
• children’s car seats and car booster seats
• children’s diapers
• feminine hygiene products

The point-of-sale rebate for motor fuels includes gasoline, gasoline–ethanol blends, diesel and biodiesel when used in motor vehicles, locomotive fuel used in trains, marine diesel used in boats, and aviation fuel and jet fuel used in aircraft.

Propane, natural gas and hydrogen are not eligible for the point-of-sale rebate. However, fuels eligible for the point-of-sale rebate are generally subject to motor fuel taxes while propane, natural gas, and hydrogen are not.

Most businesses are able to recover any HST they pay on motor fuels through input tax credits, so this rebate primarily benefits British Columbia families and individuals.

Gasoline and diesel continue to be subject to motor fuel taxes, which raise revenue for highway development and maintenance, and to British Columbia’s carbon tax which is specifically designed to send a consistent long term price signal to consumers so that they will make the choices required to reduce their fossil fuel use and emissions.

All carbon tax revenues are returned to taxpayers through other tax cuts.

The point-of-sale rebates provided have used the room B.C. has available for such rebates under the CITCA with the federal government.

Under the harmonization agreement with the federal government (the CITCA), B.C. is able to provide a limited number of provincial point-of-sale rebates for items representing up to 5 per cent of the GST base in British Columbia.

Point-of-sale rebates are also subject to other conditions such as feasibility of administration and the ability to accurately estimate the value of the items for revenue allocation purposes using mutually agreed upon definitions, data sources and methodologies.

The point-of-sale rebates are administered by the Canada Revenue Agency.

B.C. Point-of-Sale Rebates Bulletin

Additional information about the provincial point-of-sale rebates is available on the Canada Revenue Agency’s website.

If you have any questions or wish to make a technical enquiry on the GST/HST by telephone, please contact the Canada Revenue Agency at 1‐800‐959‐5525.