British Columbia | Finance & Taxation | Food & Grocery

B.C. imposes 7% provincial sales tax (PST) on soda beverages beginning April 1, 2021

February 18, 2021

The PST exemption for food products for human consumption will no longer include soda beverages as of April 1, 2021.

Soda beverages include: soft drinks and soda pop; sparkling fruit juices; carbonated or nitrogenized energy drinks; kombucha; nitrogenized coffee (if sweetened); and sparkling, sweetened water, as well as a variety of frozen sweetened beverages and desserts. Sellers must also charge, collect and remit PST on all beverages dispensed by a vending machine (unless the machine does not dispense any soda beverages) or soda fountain, even if the beverage is not a soda beverage (e.g. juice or water). Soda beverages sold with food or other goods are also subject to PST.

For any questions, please contact Greg Wilson, Director of Government Relations at gwilson@retailcouncil.org.

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