Excise taxes

Excise taxes are charged on:

• fuel-inefficient vehicles
• automobile air conditioners
• certain petroleum products

The Excise Tax Act sets out the excise tax rate for each of these goods.

When goods are made in Canada, excise tax is payable when the goods are delivered to the buyer. When they are imported, excise tax is payable by the importer, at the time the goods were imported.

Under certain circumstances, you may be able to claim a refund of the excise taxes you paid.

Manufacturers need an excise tax licence ("E" licence) unless they qualify as a small manufacturer. You qualify as a small manufacturer if your total annual sales are not more than $50,000.

A wholesaler licence ("W" licence) lets you buy goods for resale without paying excise taxes. You may qualify for a "W" licence under certain limited circumstances. When you have this licence, you collect and remit the excise tax when you sell the goods.

For more information, go to Excise taxes and other levies technical information or contact us at 1-866-330-3304.

Forms and publications

• Form L15, Application for Licence under the Provisions of the Excise Tax Act