Reporting & Paying Tobacco Tax For Retail Dealers
Your business may be required to report and pay tobacco tax each month. The reporting requirements for your business will vary depending on the type of tobacco permit(s) you have:
When you purchase tobacco from a registered wholesale dealer, you report and pay tobacco tax only when the tax rates change.
When you purchase tobacco from anyone other than a registered wholesale dealer, you must report and pay the tobacco tax:
- Calculate the tobacco tax due for the products you purchased
- Charge the tobacco tax to your customer
- Remit the tobacco tax collected from sales
You must report and pay the tobacco tax to us within 20 days of selling the tobacco products at your retail location. You must include a cheque, bank draft or money order made payable to the Minister of Finance with your return, or pay using banking services.
Note: We will not accept payments by international bank draft of less than $500 Canadian dollars. Bank drafts under $500 will be returned to you and you will need to make alternate payment arrangements.
To report the tobacco tax, complete the Collector’s Return (FIN 125) (PDF) and submit:
Your completed return and payment must be received or postmarked within 20 days of selling the tobacco products. If the due date falls on a weekend or a B.C. statutory holiday, the due date is the next business day.
If you don’t report and pay the tobacco tax due, an assessment equal to the amount of tax plus interest may be imposed.