Taxes & Fees Setup (Cova Users)

Article Topics:

• Adding a Bottle Deposit Fee in Buddi
• Applying Vape Taxes to Products in Buddi (BC/SK only)

Adding a Bottle Deposit Fee in Buddi

1. Sign in to the Admin Portal > go to Store Settings > Tax Settings
   
2. Scroll down to find the 'Add Bottle Deposit' function:
3. Click on 'Add Bottle Deposit'.
   
4. Enter the fee amount into the field. The amount must match your Cova tax settings, otherwise orders may not appear in your POS.
   
5. Hit 'Save'.
   
   

Exception for Ontario Retailers (ON only):
Bottle Deposit Fee

NOTE: In Ontario, cannabis retailers are NOT supposed to collect a Bottle Deposit Fee for beverages, but we’ve noticed some retailers have this turned on inside of Cova.

If you notice that an order placed in Buddi did not appear in your POS, it could be related to the Bottle Deposit Fee. Having this fee turned on in Cova but not in Buddi will prevent the order from going through.

For Ontario retailers experiencing this issue, there are two options to solve it:
1. (Recommended) Turn off the bottle deposit in Cova.
2. (Not Recommended) Turn on the bottle deposit in Buddi.

Article: Bottle Deposit Fee Requirements for Cannabis Retailers in Canada

Applying Vape Taxes to Products in Buddi (BC/SK only)

Vape Tax Setup for BC and SK Retailers

• 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 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 for action steps.
  
  
• Upon creating your Buddi 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).
    

***ACTION REQUIRED***

• On your end, all non-cannabis 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.
  
  
• Please follow the steps in this article: VPT Vape Tax Setup (BC / Saskatchewan Retailers).
  

  NOTE: All new accessories subject to VPT must be categorized in Buddi accordingly. Wrong tax amounts will be applied if you skip this step.

• As noted in BC's Provincial Sales Tax (PST) Notice, Goods and Services Tax (GST):
  (official notice is attached)
  "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.

Applying Vape Taxes in Cova (BC/SK only)
 ***ACTION REQUIRED***

• On your end, be sure to configure your tax settings in Cova so that applicable products are subject to 20% VPT (PST) and 5% GST (at a compounded tax rate).
• See attached PDF on BC’s Vape Tax Setup in Cova.

Article: Adding a Bag Fee