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Commercial Pilot Licence (CPAER) – Canada · Question

A business in British Columbia charges its customers 7% PST and 5% GST on eligible sales. Which of the following is true regarding these taxes?

British Columbia has separate PST and GST. Businesses collect 7% PST and remit it to the provincial government, and they collect 5% GST and remit it to the Cana

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Question: A business in British Columbia charges its customers 7% PST and 5% GST on eligible sales. Which of the following is true regarding these taxes?

Answer options:

  • The business remits 12% HST to the CRA. ✅ The business remits 7% PST to the provincial government and 5% GST to the CRA.
  • The business only remits 5% GST to the CRA, as PST is not a federal tax.
  • The business keeps the PST as a provincial revenue source.

Correct answer: The business remits 7% PST to the provincial government and 5% GST to the CRA.

Explanation: British Columbia has separate PST and GST. Businesses collect 7% PST and remit it to the provincial government, and they collect 5% GST and remit it to the Canada Revenue Agency (CRA).

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