How PST Works for Auction Items 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 taxable 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.

If you are a national organized based in BC but running a fundraiser in a different province, you can update this in your Fundraiser Builder > Fundraiser Settings > General Settings

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
General taxable goods and services	7%
Liquor	10%
BC Accommodation	8%
Municipal & Regional District Tax (MRDT)	2% or 3%
Additional Major Events MRDT - City of Vancouver	2.5%

When creating auction items, you’ll need to provide the following fair market values (FMVs) so we can calculate PST correctly:

The FMV of the entire item
The FMV of the liquor portion, if applicable
The FMV of any BC-based accommodation, if applicable
The MRDT rate for any BC-based accommodation, if applicable

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

Determining the Taxable Amount

BC has special logic for calculating PST on auction items depending on what is included in the item (particularly liquor) and how close the fair market values are to the winning bid.

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 do not need to report this PST in your annual filings.

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 (i.e. the charity/organization) remains jointly and severally liable for any PST or MRDT not collected and remitted by the online marketplace facilitator (i.e. Trellis) in relation to the online marketplace seller’s sales.

Frequently Asked Questions

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 as well as any interest or penalties.

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 if the auction item includes accommodation based in a different province than BC, or based in a different country than Canada?

Accommodation that is not located in BC is not subject to PST nor MRDT.

What is the MRDT rate for the accommodation based in BC?

Please refer to the BC MRDT Location Map to find out what MRDT rate applies to your accommodation.

What types of items are exempt from PST?

For exempt items, please refer to this webpage from the BC Ministry of Finance, consult your accountant or tax advisor, or contact BC Ministry of Finance at CTBTaxQuestions@gov.bc.ca. Trellis cannot provide tax advice.

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.

Does our organization need to remit PST from auctions ourselves?

No. Trellis collects and remits the PST to the BC Ministry of Finance on your behalf. You do not need to report this amount with your return.

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.

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.

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. Currently our system does not have the ability to only refund the PST, or to just refund part of the PST.

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.