Saskatchewan PST on bookkeeping: records that support the charge

Start with the service actually supplied

The provincial accounting bulletin includes bookkeeping, payroll preparation and account reconciliation. It also describes exceptions, including certain standalone advisory services. Where exempt and taxable work are supplied, clear separation and proper supporting facts matter; changing the invoice label does not change what was provided.

For work involving more than one jurisdiction, retain the scope and allocation evidence. A client address is useful context, but the provincial connection rules and actual activities still require review. Ask for clarification when a combined invoice gives too little information to assess the charge.

Worked example: an ordinary bookkeeping invoice

Assume a GST-registered provider supplies $875 of bookkeeping that is fully taxable in Saskatchewan, with no exemption applying. GST at 5% is $43.75 and PST at 6% is $52.50. The invoice total is $971.25. GST and PST are calculated separately on the $875 fee in this example.

The customer records the fee, GST and PST in their proper accounts. Eligible GST input tax credits require the applicable conditions and documents. Saskatchewan PST is not treated as a GST input tax credit, so it must not be netted into the federal tax control account.

Check purchases where the supplier collected no PST

A missing PST line does not always mean the purchase is exempt. Saskatchewan requires self-assessment on taxable business purchases when the supplier has not collected the tax. Review software, equipment and purchased services using their own rules and supporting descriptions.

Keep a short exception list showing the supplier, purchase date, use, tax question and resolution. It is easier to review a specific purchase with evidence than to reconstruct a year of bank descriptions while preparing a return.

Build the invoice review into month end

Confirm that the supplier document identifies the work, amount and tax treatment. Retain any exemption or allocation explanation with that document. Reconcile the GST account separately from PST collected or self-assessed, and investigate corrections before carrying them forward.

The result should be a clear trail from the purchase to the account balance and return. If a classification is uncertain, resolve the underlying service facts with the provider or appropriate tax adviser. Guessing a percentage or importing another province’s policy into the file creates avoidable cleanup later.

Put this into practice

• GST and PST bookkeeping →
• Professional service bookkeeping →
• Tax planning tools →