Hello,
The links provided, specifically for BC outline: "...the PST you pay on expenses does not get deducted from those amounts when you file your PST. Due to this, PST is now included in the expense total or capital item you've purchased."
As I and others have outlined in this stream this application of the PST rules for BC is Not Correct. The PST IS deductible against COS (COGS) items that are purchased for resale, i.e. sellable/resale inventory.
The above quote from QB references a "capital item". Apparently this includes sellable inventory. Regardless the QB approach is to apply the PST to the average cost of all items (including Resale Inventory) and not deduct this paid PST from the amount owing.
It does not matter how it is described this is NOT Correct. And it should be (have been) Fixed a long time ago.
1) PST owed is incorrect as PST for COS (COGS) inventory items purchased for resale have Not been deducted from the PST owing - Not Correct, and
2) To add the PST to the average cost of an inventory item for resale is over inflating the average cost of inventory, and is also - Not Correct.
Again, how many decades have these PST rules for BC existed?\
Get it fixed, the PST application of COS (COGS) resale inventory for BC is Not Correct.
