Canada's Vape Tax: Everything You Need to Know

To all Allo customers,  

As valued supporters of Allo, we want to ensure you are well-informed about any upcoming changes in the vaping industry that could impact you as a consumer.  

Earlier this year, Health Canada announced the decision to implement a tax on all products containing vaping substances.  

When does the vaping tax start? 

The tax came into effect on October 1, 2022. However, there is a grace period between October 1 through December 31, 2022. During this period, you will continue to see unstamped vaping products (as they are currently sold), and eventually, stamped products will be introduced as retailers deplete their stock. These stamps represent paid taxes and will be sold at the new taxed price.  

By January 1, 2023, all required vaping products must be sold with a stamp and with taxes. 

Which products will be taxed? 

All products that contain a vaping e-liquid, sold within Canada must be taxed. This includes disposable vapes, closed-pods, and e-liquid bottles. Products intended for vaping but that are sold separately from the vaping substance will not be taxed, this includes closed-pod devices, vape mods, charging cables, and other accessories.  

How is the tax calculated? 

The tax is calculated based on the liquid volume of vaping substance within the product (in mL). At this time, taxes are charged and collected at the Federal level. There is a possibility for individual provinces and territories to implement their own vape tax in the future. 

You will still be charged any applicable provincial or federal sales taxes in addition to the vape tax. This varies on the region, check your local sales tax guidelines for more information. 

If you have any other questions, please feel free to reach out to our customer service team.