VPT Vape Tax Setup (Cova users)

To ensure compliance with the 20% Vapour Product Tax (VPT) guidelines for cannabis retailers in British Columbia and Saskatchewan, it's crucial to configure tax settings correctly in both Buddi and Cova.

This also ensures that order totals match between the two systems. If the taxes charged are different between Buddi and Cova, then action is required on your end. Please refer to the sections below.

Vape Tax Setup in Buddi

• Upon creating your account, we have already configured your tax settings accordingly in the Admin Portal > Store Settings > Tax Settings page. Applicable products are subject to 20% VPT (PST) and 5% GST (at a compounded tax rate).
  
  As noted in BC's Provincial Sales Tax (PST) Notice, Goods and Services Tax (GST):
  • "Generally, when GST is payable on a good on which PST is also payable, the PST amount is not included as consideration for the purposes of calculating the GST. However, with the 20% PST rate that applies to vapour products, the PST amount is included in the consideration for the purposes of calculating the GST."
     
  • Buddi's tax settings for BC and Saskatchewan retailers charge compounded GST vape taxes, which align with government regulations.
     
• **ACTION STEP***
  • All vapour products subject to VPT must be categorized in Buddi as 'Accessory Vape: Concentrate'. This ensures that the correct tax rates are applied to those products.

Vape Tax Setup in Cova

• **ACTION STEP***
  • Ensure that your tax settings in Cova are also configured so that applicable products are subject to 20% VPT (PST) and 5% GST (at a compounded tax rate). See attached PDF on BC Vape Tax Setup in Cova: