Excise Tax On E-Liquids / Policy changes!

Excise Tax On E-Liquids / Policy changes!

In the 2022 budget, the Government of Canada approved an Excise Duty to be applied on vaping liquids.

An excise duty is a tax that is applied at the manufacturing level. The duty is to be paid when the product is ready to be sold. Whether the product is sold or sits on a shelf, the tax on the product has been paid. Since this duty is to be paid before the product is sold, sales tax are applied on top of it (tax the tax!). 

This framework is the same as the one used in tobacco, alcohol and marijuana products. Once the duty has been paid a stamp is applied to the product. 

Starting October 1st, any new bottle manufactured needs to be stamped. On January 1st 2023, all bottles sold must be stamped.

A breakdown of the the tax is as follows: 1$ per 2ml for the first 10ml, followed by 1$ per 10ml.

Popular bottle sizes will have the following amount of duty per bottle:

  • 30ml: 7$
  • 60ml: 10$
  • 100ml: 14$
  • 120ml: 16$

To prepare for this grace period of 3 months (Oct-Dec), we will be overproducing and stocking most of our catalog to be able to keep offering a lower priced tier until Jan 1st 2023.

This new framework forces us to bring some changes to our prices and policies:

  • We will be increasing our prices to reflect this tax. 
  • We will no longer offer the possibility to modify an order once it was been placed, unless the customer is willing to pay the excise tax on the new bottle (we stamp the product once we close the bottle). Please double check your order before checking out!
  • We will be increasing the free shipping threshold to reflect the new tax.
  • For the time being, USA orders will unfortunately have to pay the duties. We are working towards automating a way to prevent this.

We have always promoted fairness and want to give everyone a chance to place an order/stock up before Jan 1st. 

Starting October, most coupon codes will be disabled and we will slowly start raising our prices to balance the old/new stock and offer reduced pricing for stamped bottles. This will allow us to provide fair pricing to everyone for every flavour we offer. We will proceed with this until we run out of unstamped stock.

Due to these circumstances, from now on until Jan 1st 2023, we reserve the right not to honor abnormally large orders of our steeped Signature Line products.

We will most probably by overwhelmed with orders during this grace period. We apologies in advance for the possible delays in shipping out orders!

While we do not agree with this tax and believe it to be unfair, we are confident we will remain the cheapest option for E-Liquids made in an ISO 7 Lab in Canada.

The Vaporist Team

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