BC confirms tax measure implementation dates, deferral deadlines for businesses
BC is delaying implementation dates to April 2021 for changes to provincial sales tax (PST) and B.C.’s carbon tax.
Carbon Tax: The scheduled increase in April 2020 from $40 to $45 per tonne of carbon dioxide equivalent (tCO2e) had been paused until at least October as part of the COVID-19 Action Plan. Upon review, the B.C. government has decided the carbon tax rate will remain at its current level of $40 per tCO2e until April 2021, when it will increase from $40 to $45 per tCO2e. The carbon tax will increase to $50 per tCO2e in April 2022.
PST: The implementation of two other planned tax changes is also being delayed until April 2021. This includes the elimination of the PST exemption for carbonated beverages that contain sugar, natural sweeteners or artificial sweeteners, and the addition of new PST registration and collection requirements for e-commerce businesses located outside B.C.
EHT: To further support businesses, the employer health tax (EHT) 2020 quarterly instalment dates are being extended as follows:
• 31, 2020 (original instalment date was June 15, 2020)
• 31, 2021 (original instalment date was Sept. 15, 2020)
• 28, 2021 (original instalment date was Dec. 15, 2020)
The 2020 EHT filing and balance due date will remain March 31, 2021.
Payment Due Dates: The filing and payment due dates for the following sales taxes were extended to Sept. 30, 2020, along with the 2019 EHT filing and balance due date.:
• hotel tax, also known as municipal and regional district tax
• tobacco tax
• motor fuel tax
• carbon tax
These administrative deferrals are not being extended further.