Policy holders of crop, livestock, hail, margin/income, life and health insurance in Saskatchewan will soon receive a sales tax refund or credit from their insurance provider. Refunds and credits are automatic, meaning no action is required of policy holders.
As announced February 26, 2018, Provincial Sales Tax (PST) no longer applies to the following types of insurance:
- Individual and group life, health, disability, accident and sickness insurance; and
- Crop, livestock, hail and margin/income insurance.
The PST exemption on these insurance products is retroactive to August 1, 2017, the date certain insurance premiums became taxable in Saskatchewan.
Insurance providers who collected and remitted the PST will calculate all refunds payable and either credit each policy holder’s account or provide a refund.
Policy holders do not have to request or submit a claim to their insurance provider or to the government to receive a refund or credit. Most refunds or credits will be paid by June 30, 2018.
If you do not receive a refund or credit by that date, or have questions about the process, please contact your insurance provider.
Saskatchewan Ministry of Finance news release April 6, 2018