Saskatchewan PST on Bookkeeping: What the Invoice Should Explain

Look at the service actually delivered

PST-62 includes bookkeeping, payroll preparation, billing, reconciliation and budget preparation among taxable accounting services. Advice forming part of taxable accounting work follows that service. Some separately supplied services can be exempt, but a generic consulting label does not change the underlying work.

Where taxable and exempt work is supplied together, the bulletin requires the exempt services to be shown separately. Training also needs care: the guidance distinguishes educational services while noting that certain course or workshop admissions are taxable. Keep the scope and invoice detail available for review rather than deciding treatment from a short label.

Worked example: read the two taxes independently

Illustrative example: a Regina business receives an invoice for $1,240 of bookkeeping work verified as taxable for Saskatchewan PST and ordinary 5% GST. GST is $62 and PST is $74.40, giving a total of $1,376.40. These amounts illustrate tax arithmetic and are not a quoted service price.

If the customer is eligible to claim the $62 as a GST input tax credit, that is assessed through its federal tax records. The $74.40 PST does not become an equivalent general input tax credit. The bookkeeping entry should preserve the separate amounts and the actual service description instead of merging both taxes into a single recoverable balance.

Do not substitute a federal threshold for a provincial rule

The federal GST small-supplier framework and Saskatchewan PST obligations are separate systems. PST-62’s limited residential small-trader provision does not apply to services sold to commercial users. An invoice without PST therefore deserves review rather than an automatic assumption that the supplier is too small to charge it.

If an invoice looks wrong, ask for clarification and keep the reply with the transaction. Do not silently change the supplier’s invoice or invent an offsetting tax credit. A recurring uncertainty is worth resolving before the next month repeats the same entry.

Give the reviewer the facts needed to decide

For work involving more than one province, retain the service allocation and business context. The province-related portion requires assessment under the published rules. A remote supplier’s location alone does not settle the question.

• Retain the engagement scope and a meaningful service description.
• Show separately supplied exempt work distinctly where applicable.
• Keep GST and PST amounts and purchase-side treatments separate.
• Escalate uncertain jurisdiction, supplier or mixed-service cases with the supporting records.

Put this into practice

• Separate the tax accounts →
• Organize professional service records →
• Review supplier invoices →