In a landmark referendum BC residents voted to scrap the BC-HST introduced in 2010. In her response to the media, Premier Christy Clark announced that the wishes of the voters will be respected and that she has given instructions to her finance minister, Kevin Falcon to reinstate the old PST with all of its exemptions no later than March 2013.
How will this affect our industry? Well, it is too early to tell, however there are key points that all customers need to be aware:
- A transition back to the PST system will require customers to (re)obtain their PST numbers to once again be exempted from PST charged on products for remanufacture and resale.
- Accounting systems and invoices will need to be tested to ensure they are able to charge the 7% PST clearly and accurately.
- Staff need to be re-educated regarding the old exemptions and how to apply them.
- Accounting records for the transactions that occurred under the BC-HST period will be auditable at any time and so they should be kept securely and in an organized manner.
- Be aware that as the transition occurs key people should attend re-education seminars when they are available.
Reimer Hardwoods recognizes that this will be a stressful transition time for many of our customers and we will work closely to make the process as painless as possible.