Trade Regulation Updates

Vaping Liquid Excise Tax

September 29, 2022

An excise duty on vaping products, as announced in Budget 2022, is being implemented on October 1, 2022 through the introduction of a new excise duty framework. The excise duty applies to vaping substances that are manufactured in Canada or imported and that are intended for use in a vaping device in Canada.

Manufacturers of vaping products are required to get a vaping product licence from the CRA. Importers are required to apply for a registration from the CRA.

Manufacturers and importers are also required to register for the vaping stamping regime. All vaping products entering the Canadian duty-paid market are required to be packaged with an excise stamp affixed to the product. The excise stamps shows that duties have been paid.

While the CBSA has not issued a Customs Notice or D Memorandum to this effect, we anticipate that one will be forth coming shortly. The CRA has published information and rates that may be helpful.

We will continue to follow up with CBSA on when more fulsome information will be made public. Members with questions may direct them to Shelley Gares.

Continue reading to learn how to calculate the vaping duty.