A business that is registered to collect PST from customers

Question

A business that is registered to collect PST from customers -
A)deducts the PST it pays on business-related expenses from the PST it remits to the provincial government
B)does not pay PST on any business-related expenses
C)pays PST on most goods and services,just like GST
D)pays PST on taxable supplies and services that it does not resell

Quizplus · Accepted Answer

A business registered to collect PST is required to pay PST on taxable supplies and services that it does not resell, such as office supplies, equipment, and utilities. The PST paid on these expenses cannot be deducted from the PST remitted to the provincial government. Option A is applicable to GST, not PST. Option B is not true as the business will be required to pay PST on its expenses. Option C is also not completely accurate as PST is not levied on all goods and services, but only on specific taxable supplies and services.