Some leeway for retailers in Nfld and Lab preparing to charge the vape tax on January 1, 2021

Following RCC discussions with Newfoundland and Labrador’s Premier’s Office and the Department of Finance,  since the government was late in providing reminders and applications related to the January 1, 2021 tax on vaping products, the government has agreed to instruct inspectors to provide some leeway to retailers as they prepare to charge the vape tax on January 1, 2021.

RCC was able to secure some allowances in terms of timelines for implementation provided that:

• Retailers charge the vape tax
• Retailers are able to show inspectors that all reasonable efforts have been made to change the point-of-sale systems (POS) in advance of January 1, 2021
• Retailers area able to demonstrate the ongoing efforts being made (eg. using a notebook to figure out the tax and total amount for the customer)

The government still expects that retailers will make every effort to be in full compliance by January 1, 2021 and will rely on inspectors’ discretion on acceptable time frames, which could mean decisions may not be harmonized across the province. 

The government will however not change the official date for tax implementation or enforcement given:

• this change was announced when the budget was passed
• there has been some publicity on this tax change
• the House of Assembly is not in session (no major changes can occur)
• January 1st is less than three weeks away

Should RCC members have specific questions regarding the vape tax, they should contact Erin Dalton, Manager, Tax Administration, Dept of Finance, Government of Newfoundland and Labrador at erindalton@gov.nl.ca or 709-729-6217.