April 1 Restaurants in BC Move from HST to PST, Are You Ready?
On April 1, 2013, B.C. will replace the Harmonized Sales Tax (HST) with the combination of Goods and Services Tax (GST) and Provincial Sales Tax (PST). There are 3 things restaurants can do to prepare for the switch.
1. Update Tax Charge on POS System
Restaurants will be required to charge 5% GST and 0% PST on food sales as opposed to the 12% HST. All alcoholic sales must be charged at 5% GST and 10% PST instead of 12% HST. POS systems should be updated with the correct tax information. This arrangement of GST and PST on food and alcohol sales is a return to the pre-HST change. For restaurants that have existed before July 1, 2010, this taxation will be familiar to their business.
Vivonet customers can update the tax information through Enterprise Manager. Select HALO Editors Groups and then “add/change taxes” to reassign the proper tax to each family group. All Canadian clients have the PST, GST and liquor tax in their databases already. To learn more on how to make the adjustment, click here to watch the following training video on “Managing Taxes and Tax Classes.”
If you prefer, the Vivonet support team can make the adjustment for your restaurant in Enterprise Manager for $99. We will create the taxes at the new rate, set-up the tax classes and associate the tax classes to your existing family group structure. You will then have to test the system to make sure the taxes are being accurately charged and remitted. Call support at 1.888.778.4256 or email firstname.lastname@example.org to make the adjustment.
2. Register One or Separate PST Accounts
Restaurants that sell alcohol will need to register to collect PST. Restaurant owners with multiple locations must decide if they want to register all locations under one PST account or under separate PST accounts. If you register all your locations under one account, this means you will have one PST registration number that covers all your locations and you will file one PST return each reporting period. If you register separate locations, you will have multiple PST registration numbers and must file multiple PST returns each reporting period.
3. Register Online, In Person or Mail / Fax to collect PST:
Restaurants can register at eTaxBC. Registration takes about 10 – 20 minutes.
b) In Person:
Find the BC Services center nearest you to register in person by clicking to view this map of locations. Bring your completed registration application form and supplementary form (if needed) with all required supporting documents.
C) Mail or Fax:
Fill out the Application for Registration for Provincial Sales Tax (PST) (FIN 418). Use the supplementary form Application for Registration for Provincial Sales Tax (PST) Supplementary (FIN 418S) (PDF) if you need more space.
Additional Resources are available to help answer questions and provide additional information. Restaurants should check these sources to confirm tax rates and rules before implementing.