As announced in the 2022 Federal Budget, beginning October 1, 2022, excise duty will be payable on vaping substances that are manufactured in Canada or imported that are intended for use in a vaping device.
Manufacturers of vaping products are required to obtain a vaping product license from the CRA. Importers must apply to CRA to become a vaping prescribed person.
The rates will be as follows:
For vaping liquids:
- $1 per 2 milliliters (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
All vaping products entering the Canadian duty-paid market are required to be packaged with an excise stamp affixed to the product. The stamps indicate that duties have been paid. Manufacturers and importers are required to register for the vaping stamping regime as outlined in EDN80 – Overview of Vaping Excise Stamps.
Products entering the duty-paid market that are not stamped prior to importation must be entered into a sufferance warehouse for the purpose of being stamped.
Please refer to the following resources for additional information:
Excise duty for vaping products – Canada.ca
Applying for a vaping product license – Canada.ca
Applying as an importer of vaping products – Canada.ca
Vaping Product Marking Requirements – Canada.ca
Questions can be emailed to CRA at [email protected] or call 1-866-330-3304.