Canada Vape Tax

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A new Canada Vape Tax is being announced by the Canadian federal government beginning on October 1st, 2022. This is an additional tax for vaping products in Canada, on top of any HST or GST you are already paying. Read more to learn all about the Canada Vape Tax today! 

This tax has caused a lot of confusion amongst vapers, and many people are wondering what it all means. In this blog post, we will discuss the Vape Tax in Canada and answer all of your questions!

Introducing An Excise Duty

First things first, what exactly is an excise duty? Excise duties are a type of tax that can be imposed on goods for their production, licensing and sale. This tax is levied on certain goods that may be considered harmful to public health, such as tobacco and alcohol, and collected by the Canadian federal government.

The Canadian government is introducing an excise duty, effective October 1st 2022 that will require all pre-filled e-Liquid bottles or cartridges manufactured in Canada or imported into Canada to be labeled with an excise-tax stamp (similar to the labels on tobacco, alcohol and cannabis products). This duty applies to vaping products whether or not they contain nicotine.

Who Pays For This Excise Duty?

In the case of vaping, excise duty is paid by businesses that manufacture vaping products initially, and then the final consumer pays the vape tax to the retailer.

What products are affected?

The new excise duty will only affect e-Liquid or anything that contains vape liquid. The tax will be applied to both bottled e-Liquids and pod systems pre-filled e-Liquids, including disposable vapes.

The Canada vape tax will not affect vape hardware, as long as refillable devices are sold without e-Liquid, and are non-filled.

Canada Vape Tax Picture Vaping Man

Excise duty rates

The excise duty rates for vaping substances are included in the Excise Act, 2001, will work on a per milliliter basis and are as follows:

$1 per 2 ml, or fraction thereof in the device, for the first 10 ml
$1 per 10 ml, or fraction thereof, for amounts over the first 10 ml

Please note that the vaping duty is calculated on the quantity of e-Liquid in each package, not on the total volume.

Canada Vape Tax Examples

Vape Tax On 30 mls

If you buy 1 x 30 mls bottle of e-Liquid in Canada, the new tax will be; $5 for the first 10 mls and $2 for the next 20 mls. So the total vape tax on a 30 mls bottle of e-Liquid would be $7. This works out to a tax of approximately $0.23 cents per ml.

Vape Tax On 60 mls

If you buy 1 x 60 mls bottle of e-Liquid in Canada, the new tax will be; $5 for the first 10 mls and $5 for the next 50 mls. So the total vape tax on a 60 mls bottle of e-Liquid would be $10. This works out to a tax of approximately $0.16 cents per ml.

Vape Tax On 130 mls – Best Value!

If you buy 1 x 130 mls bottle of e-Liquid in Canada, the new tax will be; $5 for the first 10 mls and $12 for the next 120 mls. So the total vape tax on a 130 mls bottle of e-Liquid would be $17. This works out to a tax of approximately $0.13 cents per ml. This is your best value!

Again the new excise duty will only be charged on electronic cigarette e-liquids, not hardware.

Essential Liquids Inc. Canada Vape Tax

When Does This Vape Tax Start In Canada?

By shopping during the transition period between October 1st and December 31st, you will find some products that are taxed while others aren’t. e-Liquid held in inventory by retailers at the time of implementation (Oct 1st 2022) would be exempt from the tax until the new year.

As well, all retailers will have a sell-through window from October 1st to Dec 31st to sell any inventories without charging the tax.

However any imported e-Liquids not manufactured in Canada will be required to have a stamp effective October 1 2022.

Essential Liquids Inc. manufactures premium e-Liquids in Canada. We will not be charging the excise tax until late November or early December, after our current inventory has been sold.

Starting January 1st, 2023 all e-Liquid products, whether manufactured in Canada or imported,will include the new excise tax.

We highly suggest stocking up on your favourite e-Liquids before the Canada vape tax comes into effect.

Now is the perfect time to save yourself money in the future. We know you’re going to love Essential Liquids Inc. selection of fine e-Liquids, browse these Canadian made vape juices now and save.

Conclusion

You can avoid the Canada vape tax price hike by buying e-Liquids before the end of the year. So if you want to save money on vaping, be sure to stock up on e-Liquids now.

Essential Liquids Inc. also offers great eJuice discounts right now, make sure you check it out for some extra savings.

We hope you found this blog post helpful. If you have any questions in understanding the new Canada vape tax, please feel free to contact us and we would be happy to help!

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