E-LIQUID EXCISE TAX CALCULATOR

Excise tax is a tax on specific goods manufactured or produced in Canada, including:

• Alcohol
• Tobacco Products
• Cannabis & Vaping Products
• Fuel (Gasoline, diesel, avaition fuel)
• Certain Luxury Items

Provinces also levy their own excise tax in addition to the federal tax, effectively doubling the tax in those provinces.

The excise tax on disposable vapes and pre-filled pods is calculated on the volume of e-liquid in each individual unit, not the total volume in a multi-pack. So, each pod or disposable device is taxed separately, regardless of packaging.

For bottled e-liquids, the excise tax is based on the total volume of e-liquid in the entire bottle. For example, a 30 mL bottle is taxed as a single, 30mL unit.

The short answer is no. While both are consumption taxes collected by the government, they differ significantly in their scope and application.

Yes, excise taxes are applied at the manufacturer stage before GST is even calculated and included into the final retail price. Consumer's often don't see the amount paid in excise tax separately since it tends to be embedded in the advertised or sticker price.

Sales tax applies not only to the base price of goods that are subject to excise tax, but also to the excise tax amount as well.

Typically, the manufacturers or wholesalers pay the excise tax directly to the government. They, in turn, usually incorporate this tax into the price of the product, effectively passing the cost on consumers.

Imagine you buy a bottle of e-liquid or a disposable vape. The manufacturer pays the excise tax based on the ml quantity produced. This cost is then factored into the wholesale price, which retailers mark up to determine the final retail price. GST is then added to this final retail price at checkout, effectively creating a "tax-on-tax" scenario.

Yes, even vaping products with no nicotine are subject to the excise tax. The tax applies to all vapeable products, regardless of nicotine content.

The federal vaping excise duty took effect on October 1, 2022. It was subsequently increased by 12% on July 1, 2024. The implementation dates of additional provincial taxes have varied, but ultimately end up looking identical to the federal tax.

All vaping liquids and pre-filled pods are required to have a special excise stamp on their packaging to show the tax has been paid. Enforcement of stamps began in January 2023, meaning that it became illegal at that point to sell or purchase products without the stamp.

The stated aim of the excise tax is to discourage vaping, especially among youth, and to generate government revenue. The stated intent of the tax was similar to the goals stated for tobacco tax implementations of the past, all while acknowledging that vaping products are the most effective tool in reducing cigarette use.