Application of PST to Legal Fees

You are required to charge and collect the 6% PST on all fees charged for legal services with some exceptions. A few of the more common exemptions are:

  1. Legal services covered by The Legal Aid Act;
  2. Legal services provided by a person to that person’s employer in the course of employment;
  3. Legal services provided to a status Indian, Indian band or band-empowered entity that relate to a business, real property, or activity located on a reserve or that relate to aboriginal treaty or land claims issues. For more information on exempt sales to First Nations individuals and organizations, please see Information Bulletin PST-63, Information Regarding Sales to First Nations Individuals and Organizations; and
  4. Legal services provided federal government departments and agencies. Legal services provided to federal Crown corporations or to provincial government departments, agencies and Crown corporations are subject to tax.

For more information on exemptions, see Exempt Services in Information for Businesses Providing Legal Services.

 

Legal Services Provided to Clients Not Resident in Saskatchewan

If you provide legal services in Saskatchewan to a client who neither resides nor carries on business in Saskatchewan, then you may still need to charge PST if the services relate to Saskatchewan. The most common examples would include legal services that relate to real property located in Saskatchewan or legal services related to litigation commenced in Saskatchewan. There must be a connection to Saskatchewan.