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 will have to start duty-stamping products as of October 1st, 2022. Retailers can sell non-stamped products purchased before October 1st until January 1st. As of January 1st, all e-liquid sales in Canada must be excise stamped.
This does not apply to Hardware, Coils and Empty replacement Pods.
How to calculate
The excise duty rates on vaping products are outlined in Schedule 8 of the Excise Act, 2001 and are as follows:
For vaping liquids:
- $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
1) A package containing 4 pods, with each pod containing 1.5 mL of vaping liquid, attracts $4 of vaping duty ($1 per 1.5 mL pod). It is important to note that the vaping duty is calculated on the quantity of vaping liquid contained in each individual pod, not on the total volume contained in the package.
2) A 30 mL bottle of vaping liquid attracts $7 of vaping duty ($5 for the first 10 mL plus $2 for the next 20 mL).
- 2mL filled pods (STLTH etc) will be $1/pod ($3/pk)
- 6mL (Ghost MAX, ENVI etc) will be $3
- 6.8-8mL disposables (Allo 1600, Vice, Mr.Fog etc) will be $4
- 10mL disposables (Ghost MEGA, Flavour Beast, Allo 2500 etc) will be $5
- 30mL bottles $7
- 60mL bottles $10
- 100mL bottles $14
- 120mL bottles $16