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How PST Works for Auction Items in British Columbia

This article explains how PST is applied to auction items that are sold on fundraisers in British Columbia.

If your organization is based in British Columbia, you may notice Provincial Sales Tax (PST) being applied to auction items on Trellis. This is due to provincial tax legislation that requires online marketplace facilitators (like Trellis) to collect and remit PST on behalf of BC-based sellers.

This article explains when PST applies, how it’s calculated, and what you need to do as an organization running auction fundraisers through Trellis.

⚠️ Disclaimer: Trellis is responsible for the calculation and remittance of PST on behalf of charities, based on direction from an external auditor. We rely on their guidance and the BC Ministry of Finance to calculate applicable BC tax regulations. Trellis is not a tax advisor, and this information does not constitute legal or accounting advice. 

When PST Applies

BC law requires Trellis to charge PST on silent and live auction items that are sold in British Columbia. 

If your organization’s address (in the Org Profile) is in BC, your fundraiser will be considered based in BC, and PST will apply. You can update this in your Fundraiser Settings if you're a national organization running a fundraiser outside of BC.

How PST is Calculated

Trellis automatically calculates PST for you based on the winning bid and the fair market value of the item. Here are the tax rates:

Taxable Item Type PST Rate
Liquor 10%
Other taxable goods 7%
 

When creating auction items, you’ll need to provide:

  • The fair market value (FMV) of the entire item

  • Whether the item includes liquor

  • The FMV of the liquor portion, if applicable

Trellis uses this information and the winning bid amount to determine the correct PST amount at checkout.

Determining the Taxable Amount

  • If the winning bid is close to the FMV:
    → PST is charged on the entire bid amount, as it is treated as a purchase.

  • If the winning bid is significantly higher than the FMV:
    → The excess is considered a donation, and PST is charged only on the FMV.

  • If the item sells for less than its FMV:
    → PST is charged on the actual winning bid amount, since no donor intent is assumed.

PST Reporting and Remittance

Trellis collects and remits PST directly to the BC government on your behalf.

You can see how much PST was collected by downloading the All Transactions export, which includes:

  • Sales Breakdown
  • Summary
  • Checkout Overview

Even though Trellis handles PST collection and remittance, the online marketplace seller remains jointly and severally liable for any PST or MRDT not collected and remitted by the online marketplace facilitator in relation to the online marketplace seller’s sales. 

Frequently Asked Questions

Why is PST being charged on auction items now?

As of July 1, 2023, BC requires online marketplace facilitators—like Trellis—to collect and remit PST on taxable goods and services sold in British Columbia. This includes auction items containing goods like merchandise or liquor.

What if I don’t know the fair market value of an auction item?

You are responsible for entering the fair market value or retail price of any auction item. If the item is priceless and not taxable, you may enter in an estimate total fair market value and then enter the same amount in the non-taxable fair market value field.

What happens if we make an item non-taxable?

Whether or not PST applies is not at the discretion of the organizer. The BC Ministry of Finance determines the taxability of items, and Trellis is required by law to ensure compliance.

If you're unsure if an item is taxable, we recommend consulting your accountant or tax advisor, or the BC Ministry of Finance at CTBTaxQuestions@gov.bc.ca. Trellis cannot provide tax advice.

If we identify non-compliance on your fundraiser:

  • You will be invoiced for all outstanding PST.
  • A non-compliance fee will be charged.

If there is future non-compliance, your organization will be blocked from using Trellis and no refund will be provided. 

What if we enter the wrong FMV and tax is undercharged?

The organization is responsible for the accuracy of their data. If Trellis is audited and tax is found to be owing due to incorrect inputs, the organization is liable for the tax and interest.

Can I choose not to charge PST and absorb the cost myself?

No. BC tax law requires PST to be charged to the purchaser and shown separately at checkout. This applies to BC-based fundraisers selling or auctioning taxable items. 

What happens to PST if an auction item is refunded?

If a buyer is refunded through the Trellis platform, any PST collected will also be refunded automatically.

Where can I see how much PST was collected from auction purchases?

PST data is included in your fundraiser exports, such as the “All Transactions” export. Look for the Sales Breakdown, Summary, and Checkout Overview sheets for a complete view.

Do I need to remit PST from auctions myself?

No. Trellis remits all applicable PST to the BC Ministry of Finance on your behalf. 

Can I still issue tax receipts for auction purchases?

If the item does not include liquor and the winning bid is 125% or more above FMV, a partial tax receipt may be issued. PST is not included in the receipted amount. Liquor-only items are never eligible for tax receipts.

What if I don’t know the fair market value of an auction item?

You are responsible for determining the FMV of any auction item (and its liquor portion if applicable). If you're unsure, we recommend consulting your accountant or tax advisor. Trellis cannot provide tax advice.

Does PST apply to offline auction payments?

Trellis does not calculate or remit PST for offline transactions (e.g., cash or cheque). Please note, you should consult with your accountant or a tax expert on collecting PST for these purchases.

Will buyers see PST listed on their receipt?

Yes. PST is clearly itemized on the buyer’s receipt during checkout, ensuring transparency.

Do bidders see that PST will be charged on an auction item?

Auction item pages indicate if PST will apply.
 

Does PST sync into Raiser's Edge?

No, PST amounts will not sync into Raiser's Edge.

 

Need help?

Reach out to our Product Engagement Team at support@trellis.org and we would be happy to assist.