Saskatchewan Sales Tax on Insurance Premiums – Update
As a result of consultations with insurance industry associations, the Government of Saskatchewan has extended the effective date for the application of the Provincial Sale Tax (PST) to insurance premiums from July 1, 2017 to August 1, 2017. This extension will provide additional time to implement the change and to address outstanding issues.
PST of 6 percent applies to all insurance premiums with an effective date on or after August 1, 2017, sold by any company, agency, or group where the insured person or business is a resident of Saskatchewan.
The Ministry of Finance continues to consult with insurance industry associations to finalize the information bulletin which will assist in applying and collecting the PST on insurance premiums. This bulletin is expected to be complete by May 31, 2017.
Saskatchewan Blue Cross continues to seek clarity on the new legislation and will post information updates as they are available.