Month-end close: PST in Saskatchewan

Saskatchewan's PST is 6%, a nil return is still required, and since October 2024 the 10% late-payment penalty has no $500 cap.

This is part of the sales tax checklist. Saskatchewan charges its own PST on top of GST. It is filed with the Ministry of Finance, and the GST steps are on the Canada page.

Rate. 6% PST on taxable goods, services and insurance contracts used or consumed in Saskatchewan. GST is left out of the amount PST is calculated on.

Filing. The tax reported sets it: annual up to $4,800 a year, quarterly $4,800 to $12,000, monthly over $12,000. A return with nothing to report is still filed, as a nil return.

Due. The last day of the month after the period when the return is filed and paid electronically. Otherwise the 20th.

The trap. A late payment costs 10% of the tax, with no $500 cap since October 1, 2024. A return not filed by its due date costs $50 for each period, and interest is the prime rate plus 3%.

The month-end steps

1. Check registration. All businesses operating or making retail sales in Saskatchewan must be registered with a PST number. The exception is a small trader: an individual who produces goods at home and sells them on a small scale, with annual sales under $10,000, and who pays PST on the equipment and supplies used. A business outside Saskatchewan that makes retail sales in the province must also be licensed to collect PST [1]. Done when each client holds a PST number or qualifies as a small trader.
2. Confirm what's taxable. PST applies to taxable goods, certain services, and insurance contracts. Bulletin PST-46, Service Enterprises, covers the services. Basic groceries, reading materials, agricultural equipment and prescription drugs are among the exempt goods [1]. Done when each kind of sale the client makes has been checked.
3. Check the rate. The rate is 6%, with GST left out of the amount PST is calculated on [1]. Done when each taxable sale carries 6% of its pre-GST price.
4. Check purchases without PST. Tax on goods or services bought from a supplier that did not collect it, such as an unlicensed supplier outside Saskatchewan, is self-assessed and paid directly to the Ministry of Finance [1]. Done when the client's untaxed purchases for use in Saskatchewan have been listed.
5. Find the filing frequency. It follows the tax reported [2]:

If there is no tax to report for the period, a nil return is still required [2]. 6. Work out the due dates. A return filed and paid electronically is due the last day of the month after the period. A return filed or paid non-electronically is due on the 20th. If the date falls on a weekend or statutory holiday, payment and remittance are due the next business day [1] [2]. Done when each return's due date is on the client's calendar. 7. Know what late costs. Since October 1, 2024, failing to pay by the due date costs 10% of the tax for each return period, with no $500 maximum. Failing to file a return by the due date costs $50 for each return period. Failing to produce books, records or documents as required costs $500 each time, and failing to file in the manner required costs $100 each time. Interest is the prime rate plus 3%, set every six months [3]. Done when each return and payment went in by its due date, or the late ones are flagged for the client. 8. Tie the liability. Done when the PST payable account is at zero after the month's payment, or equals the tax not yet due.