British Columbia PST rate increase on vapor products
The following notice only applies to customers that are located in British Columbia, Canada. Customers who reside in any other province, territory or country are not affected.
In a “Notice to Sellers of Vapour Products,” the Government of British Columbia has announced that it will increase the PST rate on vaping-related products from 7% to 20%, starting January 1, 2020.
The new PST rate applies to vapour products, including vaping devices (e-cigs and concentrate vaporizers), tanks, cartridges, replacement parts, coils, batteries, e-liquids (with or without nicotine) and pod systems, etc.
Dry herb vaporizers are not subject to the new tax rate and will continue to be taxed at the usual 7% PST.
Typically GST and PST are calculated separately and added to the subtotal. However, the last paragraph of the government notice explains how the new PST rate and GST are calculated on a sale. The 5% GST rate is calculated on top of the PST amount.
For example, if you live in BC and the subtotal of your order is $100. PST is charged at the new rate of 20%, making your new subtotal $120. The GST rate of 5% is then charged on the $120, which means that the cost of your order will be $126.00.
Again, this tax rate only applies to orders being shipped to a British Columbia address. Customers who live in other provinces, territories or countries are NOT affected by the new tax rate.
If you have any related questions, feel free to contact us, or alternatively contact the Ministry directly (phone number is on the notice linked above).