Tax on sweetened drinks begins April 1

People who buy sweetened carbonated beverages will have to start paying provincial sales tax (PST) on the products as of next month.

That’s one of two planned tax changes that were delayed by the COVID-19 pandemic, that will go into effect on April 1, 2021.

Starting April 1, B.C. will begin charging the seven per cent PST on sweetened carbonated beverages, a move that is supported by health professionals due to the health costs and impacts of sweetened drinks. The PST will apply to all beverages that are dispensed through soda fountains, soda guns or similar equipment, along with all beverages dispensed through vending machines.

All sellers of digital software and telecommunication services will be required to collect PST on sales to B.C. customers if they have B.C. revenues of more than $10,000. As part of these new requirements, beginning April 1, all Canadian sellers of vapour products will be required to register to collect PST on all online or mail-order sales to B.C. customers.

As B.C. businesses work to transition to a post COVID-19 economy, government will open applications for two tax benefits to support businesses. These tax benefits include a temporary PST rebate on select machinery and equipment, and a refundable tax credit for employers, which encourages the creation of new jobs for B.C. workers or increases in payroll for existing low- or medium-income employees.

Applications will open in the coming weeks.