BC PST Rate increases to 20% Jan 1st, 2020
Starting on January 1st, the rate of PST (only in British Columbia) on vapour products increases from 7% to 20%.
Another part of this tax hike is that GST will be charged on the subtotal and PST.
For example:
| Subtotal | $100.00 |
| PST (20%) | $20.00 |
| Total | $120.00 |
| GST (5%) | $6.00 |
| Grand Total | $126.00 |
Another way to look at it is:
| Subtotal | $100.00 |
| PST (20%) | $20.00 |
| GST (6%) | $6.00 |
| Total | $126.00 |
Compare this to the old tax rate:
| Subtotal | $100.00 |
| PST (7%) | $7.00 |
| GST (5%) | $5.00 |
| Total | $112.00 |
Effectively, the total tax rate jumps from 12% to 26%.
This tax hike is part of the British Columbia government's plan to reduce youth uptake of vaping products.
Any vendor in Canada making sales to BC will be required to register, collect and remit this tax to the BC Government source
Hope this helps clear it up for people that may be confused.
The way we're going to process this on our Point of Sales is 20% PST and 6% GST source
Posted Dec 31, 2019, 8:23 PM UTC
813
Lovely, they tax the tax when spending after the tax you already paid when you made the money. Because it goes over easier than just taking 75% of your productive time up front and always lets them finagle just a little bit more.
If I'm reading this right, this BC NUTBAR tax only affects customers in BC and not necessarily businesses when they sell to out of province/international then?
Yep, the double dip is only orders shipping within/to BC