Special event liquor permits

This page explains how PST applies to liquor purchased and sold under a Special Event Permit.

Special Event Permits

If you sell liquor anywhere, or serve liquor at a location that's not a residence or a licensed establishment, you need a Special Event Permit. Find out how to apply for a Special Event Permit.

PST and Special Event Permits

Purchases

When you purchase a Special Event Permit you must:

Estimate the amount and the expected selling price of the liquor you'll sell, and
Pay an amount equal to the 10% PST (PST equivalent amount) on the mark-up (i.e. the difference between the price you pay for the liquor and the expected selling price) if you'll be selling liquor above the price you pay for the liquor

At or after the time you purchase a Special Event Permit, you can purchase liquor using that permit. When you purchase the liquor, you must pay PST at 10% on the purchase price of the liquor.

If you'll be selling the liquor at or below the price you pay for it, or you don't charge for liquor you provide at the event (i.e. an open bar), you pay PST only when you purchase the liquor. You are not required to pay the PST equivalent amount when you purchase the permit.

Example

You purchase a Special Event Permit and $500 in liquor for your wedding. You expect to sell the liquor for $800 at the wedding. The PST you pay when you buy the liquor will be $50.00 and the PST equivalent amount you pay when you purchase the permit will be $30.00, calculated as follows:

Your cost of the liquor purchased (10% PST on $500)	$50.00
Your expected mark-up amount (10% PST on $300)	$30.00
Total amount due	$80.00

The Special Event Permit application calculates the PST equivalent amount on the mark-up based on your estimated liquor sales at the event.

When you sell the liquor at the event, you must charge PST on the sales of liquor (see below).

Sales

During your event, you must charge 10% PST on the sale of liquor or alcoholic beverages, such as:

Beer (draft, canned or bottled)
Wine
Spirits and liqueurs
Coolers and ciders
Mixed drinks
Any other alcoholic beverage with an alcohol content of more than 1%

You can include the 10% PST in the sale price of the liquor or charge it separately.

If the PST you collect on your sales is equal to the PST you paid on the liquor plus the PST equivalent amount you paid when you purchased the permit, you can keep all the PST you collect on the sale of the liquor.

Actual liquor sales are greater than estimated

If your actual liquor sales are greater than what you estimated when you purchased the Special Event Permit, or you sell the liquor at a higher price, you must remit to us the amount of PST collected less the total of:

Any PST you paid when you purchased the liquor, and
The PST equivalent amount you paid on the mark-up when you purchased the permit

You must remit the additional PST to us on or before the last day of the month after the month in which the Special Event Permit expires. For example, if the permit expires on May 2, you must remit the additional PST on or before June 30.

If you have a PST number and your next return is due on or before the last day of the month after the month in which the permit expires, you remit the additional PST collected on your next PST return. Otherwise, you must self-assess (pay directly to us) the additional PST due using a Casual Remittance Return (FIN 405) (PDF, 255KB) on or before the last day of the month following the month in which the permit expires.

Refunds

In the circumstances outlined below, you may be eligible for a refund of the PST you paid under a Special Event Permit.

The person that holds the Special Event Permit must apply for the refund. In many cases, this is the “Permittee” named on the Special Event Permit. However, if the “Permittee” is an unincorporated organization (e.g. a recreational softball team), the person named as the “Applicant” on the permit must apply for the refund. We may return a refund application to you without processing if the applicant information needs to be changed.

Sales were less than estimated

If your liquor sales were less than estimated, you can request a refund of the PST you paid. For example, your liquor sales may be less than estimated if:

You purchased less liquor than you originally estimated
You purchased the quantity of liquor showing on your Special Event Permit but sold less than estimated
Your actual selling price per serving was less than the per serving unit price on your Special Event Permit

If you have unsold liquor, you can request the refund from the seller when you return the unsold liquor. The seller can refund the PST you paid on the returned liquor but you'll need to apply to us for a refund of the PST equivalent amount you paid on the mark-up.

How to apply

The Special Event Permit
The Special Event Permit Application Summary showing the PST equivalent amount paid on the mark-up
Copies of invoices or receipts showing the type, quantity and price of liquor you purchased
For event liquor returned to the seller, copies of invoices or receipts showing the type, quantity and price of each type of liquor you returned
A schedule showing the total liquor revenue for the event, including the details of the quantity and price of each type of liquor sold

Cancelled permits

If your permit is cancelled (e.g., because your event is cancelled), you can request a refund of the PST you paid on any liquor you purchased when you return the liquor to the seller. The seller can refund the PST you paid on the liquor but you'll need to apply to us for a refund of the PST equivalent amount you paid on the mark-up.

How to apply

The cancelled Special Event Permit
The Special Event Permit Application Summary showing the PST equivalent amount paid on the mark-up
Confirmation from the Liquor and Cannabis Regulation Branch showing the permit was cancelled

Special Event Permits and First Nations

Special rules apply under a Special Event Permit if liquor is:

Purchased on First Nations land by a First Nations individual or band, if the liquor will be provided by the First Nations individual or band at no charge at an event (e.g. an open bar at a wedding), or
For sale at an event on First Nations land

Latest revisions to this page:
October 25, 2018

Updated the PST refund application information with a new refund application form, FIN 355/SEP, for eligible PST refunds where PST was paid on a special event permit and the actual liquor sales for the event were less than estimated or the permit was cancelled

The information on this page is for your convenience and guidance and is not a replacement for the legislation.

References: Provincial Sales Tax Act, sections 1 “band”, “First Nation individual”, “liquor”, 28, 37, 98, 182 and 182.1