Excise Tax on Vaping Products
What is excise tax?
On April 7th, 2022, the Federal Government announced excise duty on vaping products. This excise duty (or excise tax) applies to any vaping substances sold in Canada that are intended for use in a vaping device.
All vaping products that are meant for sale in the Canadian duty-paid market are required to have an excise stamp affixed to the product as proof that duties have been paid. Canadian manufacturers and importers are responsible for applying excise stamps to vaping products that are intended for sale in the Canadian duty-paid market and remit payments to the Canada Revenue Agency (CRA).
When will the excise tax be implemented?
Effective October 1st, 2022, manufacturers and importers of vaping products sold at retail stores are required to be licensed or registered with the Canada Revenue Agency (CRA).
During the transition period between October 1st and December 31st you will notice both taxed and untaxed products in our online store. By clicking the EXCISE TAX FREE link in the main menu you will be able to find the products that are unaffected by the excise tax. Starting January 1st, all e-liquid products will include the new excise tax.
What changes at 416vapes and the products/brands we offer?
As you may know we are switching our manufacturing over to Dvine Laboratories starting Oct 1st, 2022. With this switch some flavours are being discontinued as well as some flavour name changes. If your favourite flavour is being discontinued we apologize in advance and advise you to stock up before Dec 31st deadline. Please keep in mind that quantities will be limited and all sales will be first come, first serve basis.
See chart below for changes
Flavour Name Changed | Flavours being discontinued
| 416Vapes | Name change | Discontinued |
| Caramacco | Caramacco | Adventures |
| Dew | Morning Dew | B Plumes |
| Dragon Joose | Dragon | Cloudy B |
| Live | Live | Crazy CB |
| Flavourless | Flavourless | The Six |
| Splash | Fruit Splash | Tropical Freeze |
| Nana's Recepie | Banana Silk | Loony |
| Hazel | Nut Job | Pineapple |
| Snozzle | Snozzleberry | Colada |
| Fusion | Strawberry Fusion | Educate |
| Summer Bliss V2 | Summer Bliss V2 | Regulate |
| Temptations | East Side | Bold Burley |
| The Beach | Peachy Banana | |
| Yolo | Monarch | |
| Frost Bite | Frost Bite | |
| Insane 6 | ||
| Angry | Angry Apricot | |
| Berserk | Berserk Berries | |
| Bizarre | Bizarre Blackcurrant | |
| Kooky | Kooky Kiwi | |
| ShookUp | ShookUp Strawberry | |
| Let’s Get Tropical | ||
| Mojito | Mojito | |
| 19+ Eliquid | ||
| Conversate | Conversate | |
| Mad Puffer | ||
| Black Ice | Black Ice | |
| Cherry Blend | Cherry Blend | |
| Nice & Smooth | Nice & Smooth | |
| Rich & Mild | Rich & Mild | |
| Deez Rollz | ||
| Classic | Classic Brown | |
| Salt Nic | ||
| Snozzle | Snozzleberry | |
| Dragon Juice | Dragon | |
| Hazel | Nut Job | |
| Caramacco | Caramacco | |
| The Beach | Peachy Banana | |
| Mojito | Mojito | |
| Bizarre | Bizarre Blackcurrant | |
| Kooky | Kooky Kiwi | |
| ShookUp | ShookUp Strawberry |
How much will the excise tax increase the prices, and how will they be calculated?
The duty is calculated based on the liquid volume of vaping substance contained in a single container (in mL). At this time, duties are charged and collected on the Federal level.
Federal Taxes Calculations
- For the first 10 mL of vaping substance, a duty is applied at a rate of $1.00 per 2 mL of the vaping substance.
- For each additional 10 mL of vaping substance thereafter, a duty is applied at a rate of $1.00 per 10 mL of the vaping substance.
Example 1:
- For a closed pod pack (3 pods cartridges), the duty payable will be CAD $1 per 2 mL, which equates to an increase of $3 per closed pod pack.
It is important to note that the Government has invited the Provinces and Territories to participate. In the event that the Provinces or Territories opt into the excise tax, a new Provincial/Territorial stamp will need to be applied on all products and the duty payable will effectively double.
Using the example above, the same closed pod pack with 6 mL of vaping substance with Federal and Provincial/Territorial duties would be $2 per 2 mL, which equates to $6. At the time of this writing, no Provinces and Territories have participated yet.
Example 2:
- A 60 mL bottle of e-liquid at Federal excise duties would be $1 per 2 mL for the first 10 mL, which equates to $5. The remaining 50 mL would be $1 per 10 mL which equates to another $5.
- The total Federal excise duties would be $10. If/when Provincial or Territorial duties are implemented, this would effectively double to $20 of excise tax.
What products are affected by excise tax?
Vaping products that are vaping devices that contain vaping substances or that are vaping substances in immediate containers. Any vaping hardware that is sold separately from the vaping substance will not be impacted.
- Taxed products:Â closed pods, disposable vapes, e-liquid bottles, or bottles containing any component intended for vaping (nicotine, VG, PG, flavouring).
- Products that will not be taxed: device/battery for closed pod systems and any vaping hardware or mods (including chargers, empty cartridges, tanks, and other accessories).