All information and processes related to the EHF (how to, how often to and to whom, etc) are controlled and defined by the ESABC and those rules & regulations take precedence over any information listed here. Visit the Encorp website to ensure you are aware of all of your obligations and criteria for the collection and remittance (if required) of the EHF.

What is the EHF?

Starting August 1st, 2007, the EHF (environmental handling fee) will be levied on the sale of new products in the designated categories sold in or into the province of British Columbia. 100% of the program revenue will be used for the administration, collection, transportation, and responsible recycling of end-of-life electronics. For more details visit the Encorp website

How do I set up my system to collect the EHF?

The easiest way to set up for the EHF is to create it as an ECO tax (taxes 7 & 8) in System 5. An example setup is in the image below (Type F for Fixed, Apply GST and PST in the Tax on Tax section, the rates are specified on the Encorp website). You can name the tax areas whatever you like (they cannot be more than 2 characters, however). The ledger number used can be any of your choices as well (ensure to create it in your Chart of Accounts afterward - it displays in yellow here as it doesn't exist yet).

The Name can be anything you choose as well, but you should set the Tax Name to match it. The name is what will be displayed on your invoice screen and printouts. As the EHF needs to be displayed on the customer invoice, using EHF as the name seems reasonable.

How do I set up my required items to have EHF applied to them?

You need to edit the appropriate inventory items and under the Taxes tab, select the correct tax you have set up (either 7 or 8) and then choose the correct tax name from the drop-down list for the fee amount required).

Now that it's set up, how does it all work?

Once you have set up the above and modified the required inventory items, when they are added to an invoice they will add the necessary amount of EHF to the new tax, and the GST and PST (if applicable) will be charged on that amount as well. This amount will accumulate in the ledger chosen during the tax setup.

  • If you are set up as a Remitter with the ESABC you will not be paying the EHF to your supplier as you buy the product but will charge the customer and remit the collected EHF periodically (use the Tax report, just as with a GST remittance, but for the EHF tax).
  • If you are set up as POP (Point of Purchase) with the ESABC you will be paying the EHF to your vendor (assuming they are a Remitter, if not, you will have to be) and when entering your bills the goods will post to Inventory as always, the EHF amount will be posted to your chosen EHF Payable ledger and the GST (if applicable) will be posted normally (There will be additional GST charged on the EHF amount now though). You will not need to remit the amount paid to the ESABC, and that amount posted to the ledger will zero out as the goods are sold and the consumer pays you the EHF.
All information and processes related to the EHF (how to, how often to and to whom, etc) are controlled and defined by the ESABC and those rules & regulations take precedence over any information listed here. Visit the Encorp website to ensure you are aware of all of your obligations and criteria for the collection and remittance (if required) of the EHF.