If you’re thinking of importing, manufacturing, or selling e cigarettes, vaporizers or other vaping products in Canada, you have to know about the excise duty (or tax as some refer to it as) being implemented by the federal Canadian government.

Canada Vape Tax
Canada Vape Tax

The Canadian Vapour Products Tax System

The program, which came into effect as of October 1, 2022, requires importers and manufacturers to obtain excise stamps and affix them to the packages of vaping products that contain e-liquid.

Excise Duty Stamps must be obtained by importers and manufacturers of vaping products.

Importers of products that are packaged before they arrive in Canada must apply for Vaping Prescribed Persons Registration, as well as apply for the vaping excise stamp regime, obtain the stamps, and affix them to their packages before the products arrive in Canada. The same goes for importers or manufacturers of vaping products that are packaged in Canada, except that instead of a registration they must obtain a Vaping Product Licence, and affix the excise stamp to packages before the products enter the duty paid market (aka retail).

You will also need to submit a business plan, financial plan, and sales and marketing plan.

If you do not have one, please reach out to my office and i can put you in touch with a great business planner.

Thinking of importing or manufacturing vaping products? See our page here. Want to find out more about the actual stamps and their features? We have a page on the excise duty stamps.

Frequently Asked Questions About Vaping Excise Tax

How much is the Canada vape tax?

That depends on whether your vaping product contains vaping liquids or vaping solids. If your product contains vaping liquids, the excise duty is:

$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

For vaping solids, $1 per 2 grams (g), or fraction thereof, for the first 10 g of vaping substance in the vaping device or immediate container
$1 per 10 g, or fraction thereof, for amounts over the first 10 g

Who has to pay the Canada vape tax?

According to the federal government: “For every vaping product packaged in Canada and intended for the duty paid market, the vaping product licensee who packaged the vaping product must calculate the vaping duty to determine the amount payable to the CRA on their monthly vaping duty and information return. For vaping products imported into Canada and intended for the duty paid market, the person liable to pay the duty under the Customs Act must calculate the vaping duty to determine the amount payable to the Canada Border Services Agency (CBSA) at the time of importation.”

Are there different rates for different provinces?

No. At this time the rate is the same no matter which province or territory you are in. The excise duty needs to be paid no matter which province or territory you import them to into or manufacture them in.

Do I have to pay the excise tax on batteries and other vape parts?

If a particular vaporizer or e-cigarette product you are selling does not contain e-liquid or any other similar substances, you do not need to affix an excise stamp and pay excise duty on those products.

How do I obtain excise duty stamps for my vaping products?

When you apply to the government for your vaping licence or registration, you will also have the opportunity to apply for the vaping excise stamp regime. You obtain them via the federal government’s online system, and they will be shipped to you. From there you need to ensure the stamps are affixed to the packages of

How do I pay and remit the excise duty for vaping products?

Each month you will need to fill out B600, the Vaping Duty and Information Return, which is due by the last day of the calendar month following the reporting period. You have to file a return even if there is no duty to pay or no business transactions. If you are a Vaping Prescribed Person, you need to instead file the B601 form.

Harrison Jordan is a Toronto-based lawyer assisting clients in the vaping / vapour product sector. To reach out to him to see how he can help, fill out the contact form today or call his office at +1.647.371.0032.

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