How PST Works for Items for Sale in BC

If your organization is based in British Columbia, you may notice Provincial Sales Tax (PST) being applied to items for sale 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 selling items on Trellis.

When PST Applies

BC law requires Trellis to charge PST on taxable goods and services 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 fair market value (FMV) of the taxable portion of an item. This taxable portion may be part of the item’s price (e.g., just the value of merchandise or liquor), or it may be the full sales price, depending on what the item includes.

The system is designed to be flexible, supporting simple items as well as complex packages with both taxable and non-taxable components.

Here are the applicable PST 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 items for sale, you’ll need to provide the following fair market values (FMVs) so we can calculate PST correctly:

• 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
• The FMV of any other taxable goods or services

PST Reporting and Remittance

Trellis collects and remits PST directly to the BC government for all applicable transactions on your behalf. You do not need to report this PST in your annual filings.

You can view the amount of PST collected in your All Transactions Export, which includes:

• Sales Breakdown

• Summary

• Checkout Overview

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Frequently Asked Questions

What does "fair market value" mean?

Fair market value is is generally defined as the highest price a good, software, or service would bring in an open and unrestricted market between a willing buyer and a willing seller who are acting independently of each other.  

What if we don't know the fair market value or whether an item is taxable?

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.

What if we've determined the item is not taxable – how do we set that up?

If the item is not taxable, enter $0 for each of the fair market value fields.

Can we choose not to charge PST and have our organization absorb the cost?

No — BC tax law requires PST to be charged to the purchaser and shown separately at checkout. 

We have already sold items for sale and did not complete the PST values accurately. What should we do?

You will need to issue refunds for any existing purchases and ask the purchasers to re-buy their items once PST is properly configured. 

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.

Where can I see how much PST was collected?

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.

What happens with PST if the 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.