Canadian Excise Tax IntroductionJohn Cloud
THE KEY POINTS
- 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
HOW WILL THIS AFFECT PRICING?
The initial 10ml of e-liquid will be taxed at 50¢ per ml. Thereafter, a rate of 10¢ per ml. This excise tax will increase the price of a typical 30ml bottle of vape juice by around 30%. 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.
HOW WILL THIS AFFECT US?
During the transition period between October 1st and December 31st you will notice both taxed and untaxed products in store and online. Starting January 1st, all e-liquid products will include the new excise tax.
Are allo products subject to this tax?
Does this mean not all e liquids currently in stock will go up in pricing on October 1st?
We will adjust the prices according to the arrival of new batches of e-liquids containing the stamps from October 1st. On January 1, 2023 all liquids on sale will be taxed.