CANADIAN EXCISE TAX INTRODUCTION

  • Royal assent passed June 23, 2022
  • All product manufactured after October 1, 2022 will require a federal duty excise stamp
  • Tax is remitted and reported at the manufacturing level
  • Retailers and distributors may sell unstamped product until December 31, 2022 at 12am, produced prior to October 1, 2022
  • Effectively at 12:01am January 1, 2023 any eliquid product unstamped is considered illegal
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    HOW DOES THIS AFFECT PRICING?

    • +$1 per 2 millilitres (mL), or fraction thereof, for the first 10 mL of vaping substance in the vaping device or immediate container
    • +$1 per 10 mL, or fraction thereof, for amounts over the first 10 mL

    Examples:

    1)     A package containing 3 pods, with each pod containing 2mL of vaping liquid, attracts $3 of vaping duty ($1 per 2mL pod). It is important to note that the vaping duty is calculated on the quantity of vaping liquid contained in each individual pod, not on the total volume contained in the package.

    2)     A 30 mL bottle of vaping liquid attracts $7 of vaping duty ($5 for the first 10mL plus $2 for the next 20mL).

    Furthermore, provinces and territories are able to implement their own provincial taxes that would further increase the price of vaping products sold within their jurisdiction.