Excise Tax Implemented on Vaping Products

Trade Update • Oct. 6, 2022

n excise duty on vaping products has been implemented through a new excise duty framework as of October 1, 2022, as announced in Canada’s Budget 2022. This excise duty applies to vaping substances manufactured in Canada or imported and intended for use in a vaping device in Canada.

Manufacturers of vaping products must now acquire a vaping product licence from the Canada Revenue Agency (CRA), while importers are required to apply for registration with the CRA.

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

What is an Excise Tax?

An excise tax is a tax imposed on specific goods such as alcohol, tobacco, and cannabis products. Canada’s government first proposed imposing excise duties on vaping products in 2021. With the implementation of the new excise task framework, all vaping products containing nicotine will be taxed and require federal excise duty stamps.

You can find more information concerning the administration and enforcement of this new tax on this page.