PST Ruling in Consulting Engineering Industrys' Favour! Now What?
If you’ve been watching our bulletins, you know that contract administration performed by consulting engineers was at risk of being PST-chargeable.
ACEC-SK undertook to educate the Ministry of Finance about the difference between contract administration performed by engineers versus construction management performed by contractors.
The result was the Ministry’s decision stating that PST to be charged for engineering services essentially remains status quo, with two exceptions:
- EPC (Engineering, Procurement and Construction) contracts will now be fully PST-chargeable, and
- Computer services performed by engineering companies will be PST chargeable.
The most important take-away from this decision is that consulting engineering firms must now clearly indicate on their invoices which categories of services they are performing (per ACEC-SK’s Recommended Schedule of Fees). If it is not clear, then the Ministry of Finance will charge the full PST for those services.
So how do you know which of your engineering services are exempt? ACEC-SK is offering Members Lunch and Learn Sessions (2 in Saskatoon, 2 in Regina) to provide the information you need to ensure that you are invoicing appropriately for your services.
June 28, 2017
