Keywords: vape excise tax Canada 2026 | vaping duty by province | CRC compliant vape wholesale
If you run a vape shop in Canada — or you're planning to open one — the excise duty on vaping products is one of the most important cost factors in your business. Get it wrong and your margins disappear. Get it right and you can price competitively while staying fully compliant.
This guide covers everything you need to know: how the tax is calculated, how it varies by province, what the excise stamp means, and what to watch for in 2026.
How the Vaping Excise Duty Works
Canada introduced a federal excise duty on vaping products on October 1, 2022. Unlike sales tax, which is calculated as a percentage of price, this duty is based purely on the volume of vaping substance in the product — regardless of brand, flavour, or retail price.
The current federal rates (in effect since July 1, 2024, following a 12% increase in Budget 2024) are:
- $1.12 per 2 mL (or fraction thereof) for the first 10 mL of vaping substance
- $1.12 per 10 mL (or fraction thereof) for any volume beyond the first 10 mL
These rates apply to all products containing vaping substance — whether or not they contain nicotine. This includes disposable vapes, vape pods, Flavour Beast e-liquid, and ALLO e-liquid. Hardware with no pre-filled liquid — mod kits, empty pod devices, coils, and accessories — is exempt.
Quick Tax Reference Table
| Product Type | Volume | Federal Duty Only | Federal + Provincial |
|---|---|---|---|
| Small disposable (e.g. Elf Bar 600) | ~2 mL | ~$1.12 | ~$2.24 |
| Mid disposable (e.g. ALLO 2500) | ~7 mL | ~$3.92 | ~$7.84 |
| Large disposable (e.g. Geek Bar Pulse X) | ~16 mL | ~$6.27 | ~$12.54 |
| High-puff disposable (e.g. Lost Mary OS50K) | ~28 mL | ~$7.39 | ~$14.78 |
| 30 mL bottled e-liquid | 30 mL | ~$7.84 | ~$15.68 |
| 60 mL bottled e-liquid | 60 mL | ~$11.20 | ~$22.40 |
Note: Approximate federal duty estimates only. Final retail prices also include GST/HST and applicable provincial taxes. Always verify with your distributor and CRA's latest published rates.
The Coordinated Vaping Duty System: Why Your Province Matters
This is where things get more complex — and where many retailers make costly mistakes.
Beyond the federal excise duty, a growing number of provinces have signed Coordinated Vaping Product Taxation Agreements (CVPTAs) with the federal government. Under these agreements, an additional provincial vaping duty equal to the federal rate is applied on top. The result: total duty in these provinces is effectively doubled.
Province-by-Province Status (as of 2026)
| Province / Territory | Coordinated Tax? | Effective Date | Total Duty |
|---|---|---|---|
| Ontario (ON) | ✅ Yes | July 1, 2024 | Federal + Provincial (~2x) |
| Quebec (QC) | ✅ Yes | July 1, 2024 | Federal + Provincial (~2x) |
| Northwest Territories (NWT) | ✅ Yes | July 1, 2024 | Federal + Provincial (~2x) |
| Nunavut (NU) | ✅ Yes | July 1, 2024 | Federal + Provincial (~2x) |
| Alberta (AB) | ✅ Yes | January 1, 2025 | Federal + Provincial (~2x) |
| Manitoba (MB) | ✅ Yes | January 1, 2025 | Federal + Provincial (~2x) |
| New Brunswick (NB) | ✅ Yes | January 1, 2025 | Federal + Provincial (~2x) |
| Prince Edward Island (PEI) | ✅ Yes | January 1, 2025 | Federal + Provincial (~2x) |
| Yukon (YT) | ✅ Yes | January 1, 2025 | Federal + Provincial (~2x) |
| British Columbia (BC) | ❌ Not yet | — | Federal only |
| Saskatchewan (SK) | ❌ Not yet | — | Federal only |
| Nova Scotia (NS) | ❌ Not yet | — | Federal only |
| Newfoundland & Labrador (NL) | ❌ Not yet | — | Federal only |
To put this in practical terms: our Geek Bar Pulse X (~16 mL) carries approximately $6.27 in excise duty for a BC retailer — but the same product in Ontario costs approximately $12.54. The Lost Mary OS50K (~28 mL) reaches approximately $14.78 in Ontario. That $6–$7 per-unit gap has a direct impact on your pricing strategy and margin.
Excise Stamps: What to Check on Every Order
Every legally compliant vaping product sold in Canada must carry a vaping excise stamp — a physical label on the packaging that confirms the duty has been paid. As a retailer, this stamp is your first line of defence against non-compliant inventory.
Stamp Colours and What They Mean
- Peach/Beige "CAN" stamp: Federal duty only. Can be sold in non-coordinated provinces (BC, SK, NS, NL). Cannot be sold in coordinated provinces like ON or AB.
- Province-specific stamps (unique colour per province): Federal + provincial duty paid. Required for sale in that specific coordinated province only.
⚠ Compliance Warning
Selling vaping products with the wrong excise stamp for your province is a violation of the Excise Act, 2001. Penalties can include fines, inventory seizure, and in serious cases, criminal prosecution. As of April 1, 2025, all coordinated provinces require province-specific stamps — the transition period has ended.
All products from Arctic Distributions ship with appropriate excise stamps for the Canadian market. Browse our disposable vapes, STLTH, ALLO, OXBAR, and ELF BAR collections — all fully stamped and compliant. If you have questions about stamp types for your province, contact our team before placing your order.
Which Products Are Exempt?
Not everything in your store is subject to excise duty. The following are exempt:
- Empty vaping hardware — pod kits, mod devices, coils, tanks with no pre-filled vaping substance
- Accessories — cases, chargers, drip tips, cotton
- Cannabis vaping products (subject to cannabis excise duty instead)
- Tobacco-based vaping products (subject to tobacco excise duty instead)
This means open pod systems like our Vaporesso kits and Uwell devices are not subject to vaping excise duty on the hardware itself — only the pre-filled pods or bottled e-liquid you stock alongside them. This is an important distinction when calculating your per-category cost structure.
Browse our compliant wholesale inventory
All Arctic Distributions products ship with correct excise stamps and full CRC compliance. No minimum order. Free shipping on orders over $1,000 CAD.
What to Watch in 2026
No major changes to the federal vaping excise duty have been announced for 2026 at the time of publishing. That said, there are several developments worth monitoring closely:
- More provinces joining the coordinated system: BC, SK, NS, and NL have not yet signed CVPTAs. If any join, duty costs in those provinces will effectively double — directly affecting your landed cost on products like VICE, DOJO, and Flavour Beast.
- Annual CPI adjustment: Federal excise duty rates are reviewed annually. Budget 2026 (expected spring 2026) may include an inflationary adjustment.
- Flavour regulations: Health Canada has been advancing proposed federal-level regulations on flavoured vaping products. New rules could affect which products can be legally sold and, by extension, your inventory decisions.
- TVPA amendments: The Tobacco and Vaping Products Act continues to be updated. Monitor Health Canada for changes to advertising, packaging, and point-of-sale rules.
The most effective way to stay ahead of regulatory changes is to work with a distributor that monitors compliance on your behalf. At Arctic Distributions, we track updates across all product lines — including Geek Bar, Lost Mary, ALLO, and ELF BAR — to ensure everything on your shelf meets the latest requirements.
5 Practical Steps for Retailers
- Confirm stamp type before every order. Ask whether products are stamped for your specific province. You can reach our team directly via the contact page.
- Build excise duty into your unit cost calculations. Use the table above to estimate duty costs when evaluating wholesale prices.
- Be cautious with cross-border inventory. Products purchased in BC (CAN stamp) cannot legally be resold in Ontario. Always source from a distributor providing correctly stamped stock. See our shipping policy for details on our delivery coverage.
- Keep your purchase records. In a CRA audit, you'll need to demonstrate that your products came from a licensed, compliant source.
- Watch the federal budget. Excise duty rate changes are typically announced alongside the federal budget, usually released in March or April.
Related Articles:
How to Make Sure Your Vape Inventory Is Legal
Vape Flavour Bans by Province: 2026 Update
Browse Best-Selling Wholesale Products
WARNING: Vaping products contain nicotine, a highly addictive chemical. This website is intended for licensed retailers only. Must be 19+ to purchase (18+ in AB and QC).
