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Tax Changes - BC and NS

Tax Changes - BC and NS

If you are a vaper and reside within Nova Scotia or British Columbia, you are probably already aware of a major change in regulations within the e-liquid industry and how it affects you.  However, if that description does not fit you, this article may be filled with valuable information so you are not surprised when you walk into a vape shop or make a purchase online.  Please keep in mind that these points are simply our interpretation of the law and should be checked against the actual legislation put out by the provincial governments involved if clarification is required.

 

British Columbia

   Previous to September 15th, 2020, vaping products were subject to standard provincial taxes.  As of today, the Provincial Sales tax has been increased from 7% to 20% on vape related products as well as an additional 5% tax on top of the total + PST.  For the simplicity of the mathematics, this results in a 26% increase (Math shown at the end of the article for those interested).

 

Nova Scotia

   When purchasing products within Nova Scotia (Be it in store or online), all e-liquids are subject to a $0.50/mL tax.  Meaning a 30mL bottle of e-liquid would cost an additional $15 on top of the cost of the product.  Solids are also subject to a $0.50/gram tax and hardware an additional 20%.

   In addition to these taxes, businesses selling products to Nova Scotia have very recently been required to supply a very substantial Bond to the NS government.  It is with this portion that we regret that we will be unable to continue the direct to consumer sale of vaping products to the people of Nova Scotia.  However, we will continue to supply retail shops with whatever products they need to service their community.  Should your vape shop not carry something you want that you know we sell, let the shop owner know to reach out to us and we’ll be sure to provide.

 

My Thoughts

   When it comes to regulation changes within the industry, I try to keep an unbiased perspective and an open mind about the motivations for said changes.  I mostly view regulations of a product a good thing overall as it showcases the governments willingness to see the success of said product continue over the years.  Creating structure is indicative of the perceived value but with the intent to mitigate danger to oneself or others.  Both provinces have reported seeing an increase in youth vaping to which the governments of those regions believe these changes will address.  The motivations for the change is admirable as True North Vapor has always taken a stance that this product is designed for people who are of legal smoking age and are already vapers/smokers.  The questions that are left on the table now will be answered in the coming months:

  • Will these new taxes effectively hinder the sale of products to minors and non-smokers/vapers?
  • Will these new taxes hinder the sale of products to consumers who effectively had quick smoking tobacco? Or worse, drive them back to smoking again?
  • Will these new taxes create a black market for unregulated e-liquid products?

 

 

Cheers,

Tim Howey

General Manager

True North Vapor

 

 

 

BC Tax Example:  If it an item costs $100 and is first subject to a 20% tax, the result would be $120.  If that $120 is then subjected to an additional 5% tax, the result would be $126.  Making the converted simplified math a straight 26%, not 25%.  This is not how it’s reported to the government when remitting taxes, but it’s the number that you, the end user, will see.


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