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 not a tax advisor. The information provided here is based on our interpretation of BC tax rules and is not legal or accounting advice. Please consult a tax professional if you have questions about your organization’s obligations.
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.
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, you are still responsible for reporting this activity in your annual BC tax filings.
Frequently Asked Questions
1. 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.
2. How does Trellis determine whether PST applies to an auction?
PST is applied if the organization’s address is in BC (set in the org profile). Trellis calculates PST based on the fair market value (FMV) and winning bid, following BC’s donor-intent rules. If an item includes liquor, it is taxed at 10%. All other taxable goods are taxed at 7%.
3. Do I need to manually calculate PST for auctions?
No. Trellis calculates PST automatically based on values you provide during auction item setup. You’ll need to enter:
– FMV of the item
– Whether the item includes liquor
– FMV of liquor if applicable
4. 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.
5. Does PST apply if the buyer is outside BC?
Yes. Trellis charges PST based on the fundraiser’s location, not the buyer’s. If your fundraiser is based in BC, PST applies regardless of where the purchaser is located.
6. 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.
7. 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.
8. Do I need to remit PST from auctions myself?
No. Trellis remits all applicable PST to the BC Ministry of Finance on your behalf. You are still responsible for reporting this activity as part of your annual BC tax return.
9. Can I still issue tax receipts for auction purchases?
In some cases. 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.
10. Is the PST logic different from how it works for items for sale?
Yes. For auction items, PST depends on both FMV and the winning bid, following BC’s donor-intent rules. For items for sale, PST is calculated solely based on the FMV entered for the taxable portion.
11. 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.
12. Do I have to apply PST to offline auction payments?
No. PST is only charged for auction items paid via credit card using Auto-Pay, SES, or the Check-In Tool. Offline transactions (e.g., cash or cheque) are excluded—Trellis does not calculate or remit PST for those.
13. Will buyers see PST listed on their receipt?
Yes. PST is clearly itemized on the buyer’s receipt during checkout, ensuring transparency.