COVID-19 B.C. tax and tax-related changes, incentives and benefits

B.C. has extended certain filing and payment deadlines for the following taxes.

Employer health tax

• File and pay your employer health tax Updated August 18, 2020 

Logging Tax

• Logging tax Updated May 28, 2020 

Sales Taxes

• Provincial sales tax (including municipal and regional district tax*)
• Carbon tax
• Motor fuel tax
• Tobacco tax

See the following notices for more information:

• Notice 2020-002, COVID-19 Sales Tax Changes (PDF, 180KB) for general sales tax information Updated September 2, 2020
• Notice 2020-003, Multijurisdictional Vehicles - COVID-19 Update (PDF, 258KB) for information about temporary measures to support the commercial transport industry New notice May 4, 2020

*Municipal and regional district tax (MRDT) is the additional 2 or 3% tax on accommodation. 

Updated September 2, 2020

The following tax changes announced in Budget 2020 are postponed and will not take effect until April 1, 2021:

• Eliminating the PST exemption for carbonated beverages that contain sugar, natural sweeteners or artificial sweeteners

• Expanded registration requirements for Canadian sellers of goods, along with Canadian and foreign sellers of software and telecommunication services

The carbon tax rate changes announced in Budget 2020 will take effect on April 1, 2021. These rate changes were originally scheduled for April 1, 2020, but were postponed to provide relief for people and businesses as part of our COVID-19 support measures.

 Carbon tax rates (PDF, 114KB) will remain at their current levels until March 31, 2021. Updated February 18, 2021

See Notice 2020-002, COVID-19 Sales Tax Changes (PDF, 180KB) for more information. Updated September 2, 2020

The four-year time limit for claiming a sales tax refund is being extended in some cases. For more information, see Notice 2020-002, COVID-19 Sales Tax Changes (PDF, 180KB). Updated September 2, 2020

Updated April 20, 2021

Effective March 11, 2019, the exemption for a new resident’s effects is expanded to provide more time for new residents to bring their vehicles and other goods into B.C. without being subject to provincial sales tax. The following bulletins have been updated to include this information:

• Bulletin PST 306, Goods Brought Into BC by New Residents (PDF, 395 KB)
• Bulletin PST 308, Vehicles (PDF, 439 KB)

School tax rates for commercial properties are reduced for the 2020 tax year.

• Classes 4, 5 and 6 are reduced by 50%

On April 16, 2020, the school property tax was lowered again and classes 7 and 8 are now included. Overall, the commercial property tax bill for most businesses are reduced by 25% on average.

Rural property tax due dates have not changed.

For rural area properties, late payment penalties for classes 4, 5, 6, 7 and 8 are postponed to November 3, 2020. Learn more about important property tax dates for rural area properties.

For municipal property tax due dates and penalty dates, please contact your municipality or review your tax notice.

Support for local governments so they can meet their operational costs and required remittances to regional districts, regional hospital districts, TransLink and transit authorities, BC Assessment, the Municipal Finance Authority and other taxing authorities.

• Authorized to borrow, interest-free, from their existing capital reserves to help pay for operating expenses, such as employee salaries

• Provincial school tax remittances are delayed until the end of the year

• Greater flexibility to carry debt for an additional year

The Federal government announced benefit payments will continue for an additional three months for those who are not able to file their 2019 income tax returns on time.

This will also apply to the B.C. Early childhood tax benefit payments for July 2020 to September 2020. Updated May 21, 2020

An additional one-time payment will be made in July 2020 on top of the regular climate action tax credit amount for qualifying individuals and families.

The previously scheduled credit increase effective July 2020 remains the same.

The Federal government announced benefit payments will continue for an additional three months for those who are not able to file their 2019 income tax returns on time. This will also apply to the enhanced B.C. climate action tax credit payment for July 2020. Updated July 7, 2020

From March 24 to September 30, 2020, most debt collection activities were suspended.

Most collection activities resume effective October 1, 2020.

If you would like to discuss flexible payment options or your account, staff are available to assist you.

To contact us, or for information on payment options, refer to your Statement of Account.

From March 24 to September 30, 2020, interest will not be charged on outstanding amounts of most provincial taxes and royalties.

People and businesses that benefit from this interest relief will be notified directly through their Statement of Account.

Interest will be charged again effective October 1, 2020.

For more information and a list of affected taxes and royalty programs, see the Order in Council.