A federal excise tax on vaping products has been in effect in Canada for some time, impacting the cost of disposable vapes. This tax applies to all e-liquids and e-liquid-filled products, including disposable vapes. It's important for both retailers and consumers to understand how this tax works.
The tax is calculated based on the volume of e-liquid in the disposable vape:
- Devices with e-liquid up to 10ml: $1 per 2ml of e-liquid. For example, a 6ml disposable vape would be taxed $3 (since 6ml / 2ml = 3, and 3 x $1 = $3).
- Devices with e-liquid over 10ml: $5 for the first 10ml, plus $1 for every additional 10ml. For example, a 13ml disposable vape would be taxed $6 ($5 for the first 10ml + $1 for the additional 3ml, rounded up to the nearest 10ml increment).
Vape products containing 10.1mL of 20mL E-Liquid:
- Current Federal Excise Tax: $6
- Updated Federal Excise Tax (12% Increase): $6.72 (July 1st, 2024)
Vape products containing 20.1mL to 30mL of E-Liquid:
- Current Federal Excise Tax: $7
- Updated Federal Excise Tax (12% Increase): $7.84 (July 1st, 2024)
Vape products containing 30.1mL to 40mL of E-Liquid:
- Current Federal Excise Tax: $8
- Updated Federal Excise Tax (12% Increase): $8.96 (July 1st, 2024)
Vape products containing 40.1mL to 50mL of E-Liquid:
- Current Federal Excise Tax: $9
- Updated Federal Excise Tax (12% Increase): $10.08 (July 1st, 2024)
This tax is applied at the manufacturer or importer level. Therefore, retailers should receive products already stamped to indicate the tax has been paid. It's illegal to sell unstamped products. Consumers will see the tax reflected in the retail price of disposable vapes.
This tax has resulted in increased prices for consumers. For example, a small disposable vape that previously cost a certain amount will now cost $3 more due to the excise tax. Larger disposables will see even greater price increases.
Cloudistro ensures all products comply with the federal excise tax regulations. We encourage our customers to be aware of these changes and understand how they affect pricing.
Important Note: Always refer to the official Government of Canada website for the most accurate and current tax information. Tax laws are subject to change.