Government of Saskatchewan
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          Monday, July 28, 2014
The Saskatchewan Advantage

The Provincial Sales Tax is a 5% sales tax which applies to the purchase, importation, or rental of certain goods and services. Businesses that sell taxable goods or services in the Province are required to obtain a Provincial Sales Tax vendor's license.  Business Registrations Saskatchewan is any easy and convenient way to register your new business in Saskatchewan. 

Effective November 8, 2007, the Provincial Sales Tax no longer applies to used light vehicles on which the tax has been previously paid.

Find out about the PST, what it applies to, who pays it and more. 

The Revenue Division has prepared a number of bulletins to help explain how the Provincial Sales Tax applies in specific situations.

These Rulings may assist you with the interpretation and application of Provincial Sales Tax.  The document is subject to review and will be updated on a periodic basis.  To receive automatic notification of any changes to this document and other tax updates, please subscribe to "What's New" under the Tax Information area.

Download and print Provincial Sales Tax forms.

An Act for the Imposition and Collection of Taxes on Consumers and Users of Tangible Personal Property and Certain Services.

Authority

Collected under the authority of The Provincial Sales Tax Act.

Basis

The Provincial Sales Tax is payable by businesses and individuals who purchase taxable goods or services in Saskatchewan or who import taxable goods or services for consumption or use in the Province.

Rate

5% (Effective October 28, 2006)

Revenue

Year Revenue
1995/96 $749,015,000
1996/97 $810,521,000
1997/98 $721,240,000
1998/99 $710,740,000
1999/00 $625,974,000
2000/01 $701,670,000
2001/02 $735,514,000
2002/03 $763,930,000
2003/04 $799,862,000
2004/05 $931,346,000
2005/06 $1,056,236,000
2006/07 $1,021,274,000
2007/08 $929,865,000
2008/09 $1,108,628,000
2009/10 $1,084,000,679
2010/11 $1,186,991,902
2011/12 $1,322,160,753
2012/13 $1,284,892,670
2013/14 (Budget)

$1,401,400,000

Vendor Responsibilities

All businesses in Saskatchewan are required to register with the Ministry of Finance. Businesses that sell taxable goods and services in Saskatchewan are required to obtain a Vendor's Licence. Businesses that do not sell taxable good or services must still apply to become a Registered Consumer for the purposes of paying tax on items purchased outside the Province. 

Businesses must file tax returns with the Ministry of Finance on a regular basis. Tax returns may be filed on a monthly, quarterly, or annual basis, depending on the amount of tax collected. You will be informed of how often you have to file. 

Payments may be remitted by cheque or money order attached to your return form. Many chartered banks and Saskatchewan credit unions also accept tax payments. Alternatively, you may file and pay your tax returns via Saskatchewan Electronic Tax Services (SETS).

Penalties for Failing to Remit the Tax

Penalty and interest charges are applied to taxes that are not remitted by the due date. These charges are necessary to ensure that taxes are collected and remitted on time.

Penalty Applied to Late Returns
A penalty of 10% of the tax payable, to a maximum of $500, is applied to each return period.

Penalty Applied to Audit Assessments (Effective July 1, 2007)
The following penalties apply to audit assessments:


Tax on Sales

  • A penalty of 10% of the amount assessed, with no maximum, is applied to audit assessments for sales of taxable goods or services where the tax should have been collected from your customers, but was not.
  • A penalty of 25% of the amount assessed, with no maxium, is applied to audit assessments for tax that has been collected from your customers but not remitted.
  • A penalty of 100% of the amount assessed, with no maximum, may be applied to audit assessments for tax collected from your customers that willfully has not been remitted.

 

Tax on Consumption

  • A penalty of 10% of the amount assessed, with no maximum, is applied to audit assessments for goods or services that were taken from inventory or purchased from a supplier who did not charge the tax, where the tax should have been self assessed, but was not.

 

Interest Charges
Interest at the prime interest rate plus 3% is charged from the date the tax was to have been remitted.


In addition, businesses filing late returns or returns without payment forfeit their commission for that tax period. For further information on your tax responsibilities, please see Bulletin PST-5.

Related Documents
PSTSchedule5.pdf  ( 42.1 KB )


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