- Starting June 1, 2025, a six percent PST will be added to vapor products in Saskatchewan, totaling a 26 percent tax with the existing Vapor Products Tax.
- Vapor products include e-cigarettes, e-substances, and related cartridges and components.
- Exclusions are cannabis, heated tobacco products, and dry herb vaporizers for cannabis.
- Retailers must collect and remit both taxes.
- New PST penalties effective October 1, 2024, aim to improve compliance.
- Late filing penalty is $50 per late return.
- Late payment penalty remains at 10 percent of unpaid tax, with no $500 cap.
- Failure to produce records incurs a $500 penalty per instance.
- Incorrect or incomplete return filing results in a $100 fine per return.
- Audit penalties range from 10 percent to 100 percent based on violation severity.
- Interest on tax assessments is the prime rate plus 3 percent, adjusted semi-annually.
- To avoid penalties, ensure timely and accurate PST filings and payments, and maintain detailed records.
Source: bakertilly.ca
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
