What is GST and PST filing?
GST and PST filing is reporting the sales tax you collected, claiming back what you are allowed to, and paying the difference. In British Columbia these are two separate taxes with two separate returns. GST is federal, charged at 5%, and filed with the CRA. PST is provincial, charged at a general rate of 7%, and filed with the BC Ministry of Finance.
The two taxes do not always land on the same sales. A Langley nursery can owe GST on its garden-centre sales and none on certain farm products, while PST applies to a different mix again. Getting the returns right depends on coding each sale correctly the day it happens, not on fixing it at filing time.
What does Langley Bookkeeping include in GST and PST filing?
- Setting up the right tax codes in QuickBooks Online or Xero for each kind of sale and purchase
- Reconciling GST collected and input tax credits to the general ledger before each return
- Preparing and filing GST returns on the frequency the CRA assigned you: monthly, quarterly, or yearly
- Preparing and filing PST returns, including PST owed on taxable goods you bought without paying it
- Keeping exemption paperwork, such as farmer exemption certificates, with the transactions it supports
What software do you use for GST and PST filing?
The tax codes live in QuickBooks Online or Xero, so each return starts from the ledger rather than a spreadsheet. GST returns are filed through the CRA's online services. PST returns are filed and paid through eTaxBC, the province's online account. You keep the logins; we work under delegated access.
How is GST different from PST in British Columbia?
GST is a federal value-added tax that most registered businesses recover on their business purchases; PST is a provincial retail tax that is generally a cost to the business that pays it. The practical differences:
| What differs | GST | BC PST |
|---|---|---|
| Who runs it | Canada Revenue Agency | BC Ministry of Finance |
| Rate | 5% | 7% general rate; 10% on liquor |
| When you must register | Once taxable sales pass $30,000 over four consecutive calendar quarters | Generally when you sell or lease taxable goods or services in BC; small sellers can be exempt |
| Tax you pay on purchases | Usually recovered as input tax credits | Generally not recoverable |
| The Langley wrinkle | Most farm products and food livestock are zero-rated | Qualifying farmers can buy listed farm equipment without paying PST |
What is not included in GST and PST filing?
We do not issue tax opinions or represent you in a CRA or Ministry of Finance audit. Hard questions about how a sale should be taxed, such as new homes, property with mixed uses, or rebates, go to your CPA or a tax lawyer. We keep the records they need and apply their answer in the books.
What does GST and PST filing cost in Langley?
GST and PST returns are included in monthly bookkeeping at every tier, starting at $500 to $750 per month CAD. If you only need returns prepared from books someone else keeps, we look at those books first and then quote. Fees are plus applicable taxes.
Which Langley businesses charge PST, and which sales are exempt?
Most businesses that sell or lease taxable goods in BC register and charge PST, which takes in many Langley shops, tasting rooms, and service businesses. Three local cases come up often.
Farms. A qualifying farmer can buy or lease specifically listed farm equipment and goods, such as tractors, combines, and incubators, without paying PST, as long as they are used solely for a farm purpose. You are generally a qualifying farmer if you own or lease land classified as a farm under BC's Assessment Act. To claim it, give the supplier a completed Certificate of Exemption – Farmer (FIN 458), or a BC Farmer Identity Card that has not expired, at or before the time of sale. If an exempt item is later put to a non-farm use, PST becomes payable on it. On the GST side, most farm products and livestock raised for food are zero-rated.
Contractors. A contractor who supplies and installs materials that become part of a building, such as framing, plumbing, or drywall, generally pays PST when buying those materials and does not charge PST on them to the customer. That holds for both fixed-price and time-and-materials contracts. A contractor only needs a PST number if it also sells taxable goods without installing them, or installs goods that do not become part of the property.
Wineries, breweries, and tasting rooms. Liquor sales carry PST at 10%, not the general 7%, and the rest of the menu or gift shop may be taxed differently again. Each item needs its own tax code in the till.
One mistake turns up across all three: taxable equipment bought out of province, or online, with no PST charged. That PST is still owed, and it has to be self-assessed on the next return.
Further reading
For sales tax in the context of the whole year, read the Langley owner-operator's guide to bookkeeping.
On narrower questions:
- GST and PST for Langley businesses: who registers, what is exempt, and filing frequency.
- GST on new homes and rentals: the records Langley builders and investors need to keep.
- Winery and brewery bookkeeping in BC: inventory, excise, and the tasting room.
A good fit if
- You are registered for GST, PST, or both, and want each return built from reconciled books
- Your sales mix includes exempt, zero-rated, and taxable items, as many farms and tasting rooms do
- You buy equipment or materials that may qualify for an exemption, and want the paperwork kept
Probably not the right fit if
- You are a small supplier under the $30,000 GST threshold with no other sales tax to report
- You sell into several provinces and need multi-jurisdiction sales tax planning
- You want returns filed without anyone reconciling the books behind them