British Columbia Farm PST Exemption for Equipment
Qualifying farmers in British Columbia can save 7% PST on skid steer and compact track loader purchases. On a typical $45,000 machine, that's $3,150 in your pocket instead of the government's.
How Much Will You Save?
Without Exemption
$5,400
12.0% total tax
With Farm Exemption
$2,250
5% GST only
Your Savings
$3,150
7% PST exempt
PST Savings by Equipment Price
| Equipment Price | Normal Tax (12.0%) | Farm Tax (5% GST) | You Save |
|---|---|---|---|
| $25,000 | $3,000 | $1,250 | $1,750 |
| $35,000 | $4,200 | $1,750 | $2,450 |
| $45,000 | $5,400 | $2,250 | $3,150 |
| $60,000 | $7,200 | $3,000 | $4,200 |
| $80,000 | $9,600 | $4,000 | $5,600 |
Who Qualifies for the BC Farm Exemption?
Farm Land Classification
Your land must be classified as "farm" under the BC Assessment Act, OR you hold a valid BC Farmer Identity Card.
Primary Farm Use
The equipment must be used primarily (more than 50%) for farming activities on your qualifying farm.
Valid Exemption Certificate
You need either a completed FIN 458 certificate or your BC Farmer Identity Card number to claim the exemption.
How to Claim the Exemption
Verify Your Farm Status
Confirm your land is classified as "farm" by BC Assessment, or that you have a valid BC Farmer Identity Card.
Check BC AssessmentComplete Form FIN 458
Fill out the Certificate of Exemption (FIN 458) with your farm details and legal land description.
BC PST Farm Exemption InfoProvide to Dealer
Give the completed certificate to the equipment dealer at time of purchase. They'll apply the PST exemption on your invoice.
Keep Records
Retain copies of the certificate and invoice for at least 7 years in case of audit by the BC Ministry of Finance.
Equipment Eligible for Farm PST Exemption
Most farm machinery and equipment qualifies for the BC PST exemption when used primarily for farming:
Equipment must be used primarily (over 50%) for farming. If you use a skid steer for both farm work and a side landscaping business, you may need to prorate the exemption.
Important Considerations
The exemption applies to PST only — you still pay the 5% federal GST.
If you're GST-registered, you can claim the GST back as an Input Tax Credit (ITC).
Keep detailed records of equipment usage in case of audit.
If equipment use changes to primarily non-farm, you may owe the PST retroactively.
Frequently Asked Questions
Can I claim the exemption on a used skid steer from a private seller?
Yes. PST applies to private sales in BC, but the farm exemption still applies. You'll self-assess PST when registering the equipment and claim the exemption at that time.
What if I use the skid steer for both farm and non-farm work?
If primary use (over 50%) is farming, you can claim the full exemption. Track your usage in case of audit. If use is split 50/50 or primarily non-farm, the exemption doesn't apply.
Do I need a farm business number?
No, but you do need land classified as farm by BC Assessment OR a BC Farmer Identity Card. A GST business number helps recover the federal portion.
How long does the exemption certificate last?
The FIN 458 is a one-time certificate per purchase. Your underlying farm classification is reassessed annually by BC Assessment.
Find Equipment in British Columbia
Browse skid steers and CTLs for sale in BC. Use the farm exemption on your next purchase.
Related Resources
Find Equipment Deals
We'll match you with the best listings. No spam, no obligation.
We got your info
We'll be in touch shortly with matching listings.