PST on Silver Maple Leaf bullion coins

[makoto3071]

I recently purchased two silver Maple Leaf bullion coins thats 99.99% pure silver, during checkout I was charged PST. Based on my search the silver bullion coins at this purity should be both GST and PST exempt. Am I missing something here or did eBay mess up?

[marnotom!]

What province are the coins being shipped to?

Did the seller(s?) list the coins in the bullion category and/or note their purity in the “Item Specifics” section of the listing?

[makoto3071]

Shipped to BC Canada, item is listed in the bullion category and purity is included in the item specifics section

[reallynicestamps]

To my mind , this is bullion.

 And this is a coin or medallion.

 Once you add all the extra working, it becomes an art piece and the buyer is paying for the labour. 

Revenue Canada may not agree with me.

[aznbids]

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/17-1/definition-fin...

Precious metals

Definition of precious metal
ss 123(1)

27. A "precious metal" is a bar, ingot, coin or wafer of gold, platinum or silver that is refined to a purity level of at least

1. 99.5% in the case of gold and platinum, and
2. 99.9% in the case of silver.

Policy statement
P-192, Supplies of Precious Metals

28. A precious metal in the form of a bar, ingot or wafer at the required purity levels must generally be recognized and accepted for trading on Canadian financial markets. Ordinarily, these will bear markings indicating their purity level. They will also have an identification mark of the issuing financial institution or refinery. With respect to coins, only those metals at the required purity levels that have been issued by a government authority and that may be used as currency will qualify.

29. Any supply of a precious metal (i.e., gold, platinum or silver) meeting the purity requirements, as set out in the definition of precious metal in subsection 123(1), is a supply of a financial service and generally exempt. Metals of this quality are normally investment-related and are usually bought and sold on international exchanges that establish world-wide precious metal prices.

30. The sale or purchase of a precious metal, in the course of a commercial activity, that does not comply with the defined requirements is not considered a supply of a financial instrument, but rather a supply of property. Generally, the sale of gold, platinum or silver in bar, ingot, coin or wafer form with a purity level of less than 99.5% for gold and platinum, and less than 99.9% for silver is taxable at 7% or 15%. The sale of gold, platinum or silver at the defined purity levels, but not in the form of a bar, ingot, coin or wafer (e.g., in granular form), is taxable at 7% or 15%.

=============

Coins would still count as precious metals according to Canada provided it meets the purity levels, issued by government authority, and may be used as currency. 

[marnotom!]

The issue @makoto3071 had, though, is that they were charged British Columbia provincial sales tax for the coin. Apparently, there are some circumstances where “pure” collectors coins are subject to BC PST.

This is from a BC provincial government webpage listing PST exemptions:

 

https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/exemptions/exemptions-documentation