If you are thinking of importing or manufacturing tobacco or vaping products, chances are you will need to apply for the excise stamping regime and apply excise stamps to your products before they enter the duty-paid market in Canada. As of October 2022, the Canadian government has started to enforce the vaping excise stamping regime, which is in addition to the tobacco products excise duty regime which is already in effect and being enforced.

Canadian Vaping Excise Duty Stamp
Canadian Vaping Excise Duty Stamp

What is an Excise Duty Stamp?

An Excise Duty Stamp is a stamp that a manufacturer or importer of tobacco or vapour products must obtain from the Government of Canada and affix to their product before it is sold in the duty-paid market. For tobacco products, there are stamps specific to each province that the product will be sold in, in addition to a federal, peach-coloured excise stamp. For vaping products, there is only one excise stamp: the federal, peach-coloured stamp.

Manufacturers and Importers of Tobacco Products

Whether you manufacture or import tobacco products, you will need to register for the excise stamp regime. There is, however, a specific exemption for people who are manufacturing for their own personal use if they meet certain conditions. Excise duty is payable on tobacco products, and the excise stamp affixed to a tobacco product shows to the public and law enforcement that excise duty has been paid in respect of the product. Tobacco manufacturers and importers must keep records of information and file returns with the Government of Canada. An excise stamp must be applied to all manufactured tobacco, which is defined as “every article, other than a cigar or packaged raw leaf tobacco, that is manufactured in whole or in part from raw leaf tobacco by any process.”

Importers of Pre-Packaged Vaping Products

Are you an importer of vaping products that are already packaged before they come into Canada? While you may not need a vaping licence, you will likely need to register for what’s called Vaping Prescribed Persons registration. I talk more about it in the page here. Additionally, you will need to apply for the excise duty stamp regime and apply the stamp before the product is imported into Canada. This means that if you do not. Enforcement of this new regime starts October 1, 2022, so it is very important that before then you have applied for the correct registration and are ready to comply with the requirements of the regulations.

Manufacturers of Vaping Products

Similar to importers of pre-packaged vaping products, if you manufacture vaping products you must register for the excise stamp regime and obtain excise stamps. You will have to apply the excise stamp at the time the vaping product is manufactured — before it enters the duty-paid market. Just like other parties that need to register for the excise stamping regime, you must keep records as well as file information returns with the Canadian government.

Ordering Excise Stamps

The Canadian government has an online stamp ordering system set up through which you must purchase your excise stamps. The stamp purchaser can log into this system and place an order. Note that there are some differences between the tobacco and vaping excise stamp ordering systems, and they have separate login systems. Please note that the excise duty stamps themselves cost money (typically under 1 cent each) and this fee needs to be paid in order to obtain the excise stamp.

Vintage Excise Duty Stamp (Not currently in use.)
Vintage Excise Duty Stamp (Not currently in use.)

For more information on the vaping tax, click here.

You deserve a dependable and reliable lawyer on your side. Harrison Jordan is a Toronto-based lawyer assisting business with their tobacco and vaping excise duty stamping and licensing needs. Call him at +1 647 371 0032 or email him today. He’ll get back to you as soon as he can.

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