Tariffs on Importation of US Goods

Apr 11, 2025

 

On April 9, the Government of Canada imposed duties on the importation of non-CUSMA-compliant US-made vehicles and vehicle content. The list of vehicles and content subject to tariffs can be found here. This comes in addition to 25% tariffs set on a variety of products imported from the United States effective March 4, which can be viewed here. These are countermeasures to tariffs applied to Canadian exports to the US which is summarized here.

Tax Relief for Business Affected by Tariffs

Apr 1, 2025

The Government of Canada recently announced that the CRA will:

  • Defer GST or HST remittances and corporate income tax payments from April 2 to June 30, 2025.
  • Waive interest on GST or HST between April 2 and June 30.
  • Provide interest relief on existing GST or HST balances between those dates.

GST and HST returns still need to be filed as normal. 

Elimination of Consumer-facing Carbon Tax

Mar 28, 2025

The government of British Columbia followed Prime Minister Carney's announcement that the Federal Consumer Carbon Tax with the elimination of the BC Consumer Carbon tax. Both changes will take effect April 1, 2025. These rules are complementary; the federal carbon tax applies in jurisdictions that do not already have a corresponding provincial tax. How this impacts all "consumers" is not yet known.

GST Eliminated for First-Time Homebuyers 

Mar 21, 2025

Prime Minister Carney issued a press release that first-time homebuyers will not have to pay GST on homes under $1M. Hopefully more details will be forthcoming as this leaves many questions, such as when this will come into effect and how it will be implemented.

Output-Based Pricing system                                                                                                                                                         

Mar 20, 2025

Many companies with industrial operations in British Columbia seem to not be aware of the Output-Based Pricing System Program or OBPS. 

 

OBPS, administered by the Ministry of Energy and Climate Solutions, is an exemption from carbon taxes for qualifying and registered industrial operations. This program is mandatory for operations that emit over 10,000 tons of carbon dioxide equivalent per year, or for production of a regulated product. Operations are assessed on an annual basis to incentivize emitters to reduce GHG emissions. Credits are earned for organizations that are under their annual "limit", which is determined by a formula that compares their operations to a production weighted average emissions intensity for the product being produced. Over limit they will have to buy credits or make direct payment in compensation..

Industrial operations that produce a regulated product but emit less than 10,000 tons can opt-in by applying to the Director of the Greenhouse Gas Industrial Reporting and Control Act. There may be cost benefits for organizations that opt in.

 

Apply for OBPS through the CAS OBPS Registration.

 

More information about the program can be found in the BC OBPS Program Guidance or contact me.

Changes to Tax Verification Requirements                                                                                                                                  

Jan 1, 2020

 

Effective January 1, 2020, unless certain exceptions apply, vendors will be required to provide a Tax Verification Letter before contracts with the Province valued at equal to or above $100,000 (including all fees, expenses and options to extend or renew) can be entered into, extended or renewed. This requirement will ensure vendors entering into contracts with the Province are compliant with certain tax obligations.  Link 

Mandatory QST registration for suppliers outside Québec

Mar 27, 2018

As part of the 2018-2019 Budget Speech  This link will open a new tabdelivered on March 27, 2018, the Minister of Finance announced the implementation of a new QST registration system to collect QST from suppliers that are non-residents of Québec and thereby ensure tax fairness.

 

 

Foreign suppliers (suppliers outside Canada) will have until January 1, 2019, to register for the QST using this new system, while Canadian suppliers (suppliers outside Québec) will have until September 1, 2019. Note that registration will also be mandatory for certain digital platforms acting as an intermediary between suppliers and consumers.

Foreign suppliers: mandatory registration before January 1, 2019

Jan 1, 2019

This deadline applies to foreign suppliers:

  • with no physical or significant presence in Québec;
  • that are not already registered for the QST;
  • that make over $30,000 in taxable sales to consumers in Québec; and
  • that supply services and incorporeal moveable property in Québec.

Canadian suppliers: mandatory registration before September 1, 2019

September 1, 2019 

This deadline applies to Canadian suppliers:

  • with no physical or significant presence in Québec;
  • that are not already registered for the QST;
  • that make over $30,000 in taxable sales to consumers in Québec;
  • that supply services and incorporeal moveable property in Québec; and
  • that supply corporeal movable property in Québec.

 

Application of the new measure

Suppliers that have questions concerning their registration can contact us. They must register and start collecting and remitting the applicable QST on their taxable sales made to Québec residents that are not QST registrants by the above deadlines.

 

This measure is an important step towards ensuring tax fairness between non-resident suppliers of Québec and local businesses, which are required to collect and remit the QST.