Written by: Josh Buchanan, Magnaltus Consulting
During the process of registering or incorporating your business with Saskatchewan’s corporate registry, you can register for a provincial sales tax (PST) account with the Saskatchewan Ministry of Finance. The information required to register for a PST account can be input through the customer portal on the Information Services Corporation (ISC) as part of the business registration steps.
Like GST accounts, PST accounts can be directly connected to the corporation in the case of a corporation, directly connected to the individual in the case of sole proprietorships, or connected to a registered partnership in the case of partnerships.
PST is a provincial sales tax in Saskatchewan and was first introduced as a 2% tax in 1937. As of 2025, the PST rate is 6%, where it has sat since 2017, after peaking at 9% in the 1990s.
Each province has its own separate PST system, rates, governance, and requirements. Quebec has a 9.975% provincial sales tax, and provinces like Ontario and New Brunswick have combined their provincial sales taxes with the federal sales tax (GST) to create a harmonized sales tax called HST. Provinces like Alberta and Nunavut do not have a provincial sales tax at all.
In Saskatchewan most businesses are required to register for a PST number. Upon registration, the Ministry of Finance will issue the business a PST vendor number and/or a PST consumer number. The vendor number is the number used for reporting PST collected on sales made by a business. The consumer number is used to report PST for purchases made on taxable sales where PST was not collected by the supplier.
Many goods and services are subject to PST such as: prepared food, clothing, accounting services, and veterinary services. However, some goods and services are exempt from PST including: basic groceries, reading materials, agricultural equipment, and prescription drugs.
Similar to the small supplier exemption for GST, PST has a “small trader” exemption. If a business meets the criteria set out by the Ministry of Finance as a small trader, then the business does not need to register for a PST account, collect, file, or remit PST.
The criteria outlined by the Ministry of Finance for small trader is:
Individuals who operate from their home and produce goods such as craft items that are sold to other individuals on a small scale or non-commercial basis are not required to become licensed to collect tax providing that:
Annual sales are less than $10,000;
The goods are produced and sold from their residence; and,
PST is paid or self-assessed on the purchase price of equipment and supplies used in the production of those goods.
The guidelines further explain that: This guideline does not extend to individuals or small businesses that conduct sales or provide services outside their residence (e.g., farmers’ market, online marketplaces, etc.) or sell taxable goods or services to commercial customers. Small traders that advertise and compete in the retail market with other licensed vendors, and/or make sales outside of their residence or to commercial customers are required to become licensed, and collect and remit PST.
Businesses that are eligible to be small traders still have the option to voluntarily register for a PST account. Once an account has been created, all regular PST requirements must be followed. For businesses that don’t meet the small trader criteria, once a business is registered for a PST account, information will be sent in the mail that includes the account number and information on how to create an online PST account with Saskatchewan eTax Services (SETS).
It is important to file and remit PST according to the schedule determined by the Ministry of Finance for each business. Failure to file even a nil return will result in a $50 fine. A PST tax return will be sent to you at the end of each reporting period, and filing instructions are provided on the form.
Starting out, most businesses will automatically be registered for quarterly PST filing. After the first year of business, an adjustment will be made to the frequency of reporting based on the PST that was collected in the first year. The reporting frequency for PST is determined based on the amount of PST collected by a business. Businesses collecting more than $12,000 PST annually must file PST monthly. Businesses collecting between $4,800 and $12,000 annually must file quarterly. Businesses collecting less than $4,800 per year only file once annually.
One key consideration for businesses in Saskatchewan is that PST must be self-assessed and paid directly to the Ministry of Finance for taxable purchases where the supplier does not charge PST. For example, if a Saskatchewan business purchases office equipment from a store in Alberta, the store will not charge PST since Alberta does not have PST. However, because the purchase is for items being used in Saskatchewan, the PST must be self-assessed and paid by the Saskatchewan business. Another similar example would be for the purchase of business software from a provider in the United States that doesn’t charge PST.
Unlike GST, PST is not charged at every stage of production and distribution. Typically, PST is only charged to the end user of a good or service. Therefore, PST does not have Input Tax Credits (ITCs) like GST does. When a business acquires goods either to be resold or to be used in the construction of a final good for a different end user, the business acquiring the good typically should not pay PST to the supplier.
In such cases, the business should provide its PST vendor number to the supplier and the supplier should then sell the supplies as PST exempt. The business reselling the goods or constructing a final product will charge PST to their customer. For example, if a construction company purchases lumber from a hardware store to be used to construct a fence for their customer, the construction company should provide their PST vendor number to the hardware store. The hardware store should not charge PST on any of the items that will be used to construct the fence. The construction company will charge PST on the total cost of construction to the customer.
It’s important to note that items like safety and cleaning supplies that are used during the construction of the fence but are not part of the fence itself are typically not PST exempt. Because these items are not left with the customer, the construction company is the end user, and therefore pays PST on them rather than the customer for whom the fence is built. The same rules apply for businesses such as retailers who purchase goods from wholesalers or distributors to then sell to a different end user.
Like GST, PST may seem complicated and intimidating at first and it is more nuanced than the GST system. However, it becomes much easier to understand and manage once you have gained some experience working with it. Business owners do not need to become experts in PST, but it is important to gain a strong understanding of how PST applies to the specific goods and services that their business provides. Additionally, it’s important to understand proper documentation, reporting requirements, and PST self-assessment rules on purchases.
Sources:
General PST information – https://www.saskatchewan.ca/business/taxes-licensing-and-reporting/provincial-taxes-policies-and-bulletins/provincial-sales-tax
History of PST – https://esask.uregina.ca/entry/taxation.html
Main PST Information Bulletin – https://sets.saskatchewan.ca/rptp/wcm/myconnect/2f7bed69-f481-4fca-8b2d-f80c2acf7d99/PST.005+Registration+and+Reporting+Requirements.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-2f7bed69-f481-4fca-8b2d-f80c2acf7d99-pmMiCdJ
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