What is PST?

PST is the abbreviation of Provincial Sales Tax and is in general due when goods and/or services are sold.  It generally applies to all goods and services that are bought and sold for use or consumption in the province. It is a Consumption Tax because it is borne ultimately by the final consumer.

Who must pay PST?

Generally, PST is invoiced by the supplier that is selling goods or services and collected from the customer.  Subsequently, the supplier reports and remits the collected PST to the tax authorities. 

Why am I being charged PST?

Freshworks conducts sales in the following provinces: British Columbia, Manitoba, and Saskatchewan that is above the threshold amount required for PST registration. As such, Freshworks is required to collect PST on all supplies made to customers in British Columbia, Manitoba, and Saskatchewan.

How is Freshworks determining which customers PST applies to?

Freshworks will apply PST based on the PST rules for a non-resident suppliers providing services to customers in British Columbia, Manitoba, and Saskatchewan.

It is your responsibility as a customer to ensure that your bill-to/ship-to address is correct.

Does Freshworks provide PST exempt or non-PSTable services?

No.  All services currently provided by Freshworks to customers in British Columbia, Manitoba, and Saskatchewan are subject to PST at the standard rate.

Are there any special exemptions applicable for charities under which PST may not be charged?

No.  There are no exemptions from PST available under British Columbia, Manitoba, and Saskatchewan rules for the services Freshworks supplies to charities in these provinces.

Will PST apply even if a British Columbia, Manitoba, and Saskatchewan company provides a valid PST number to Freshworks?

Yes.  PST applies to all the products/ services that Freshworks makes to customers in British Columbia, Manitoba, and Saskatchewan.

Are there any PST obligations for me as a customer?

No.  The customer in principle has no PST obligations.  If you are a registered for PST in British Columbia, Manitoba, and Saskatchewan and you want to claim an input tax credit for the PST paid to Freshworks, as a minimum, you should ensure to keep a copy of Freshwork’s invoice for your records.

 

Disclaimer

Every customer is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant tax rules. Freshworks cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.