Cannabis duty – Report and remit (pay) the duty on cannabis

Who is required to file a cannabis duty and information return

All cannabis licensees must file, on a calendar month or quarter basis, returns to report their inventories, and if applicable, sales and duty payable. To qualify to file quarterly returns, a cannabis licensee must make a request to the CRA and meet all of the following conditions:

• The cannabis licensee holds a cannabis licence with the CRA for a period exceeding 12 consecutive calendar months
• The cannabis licensee is compliant with the Act, including not having any outstanding returns
• The total of all excise duties payable under Part 4.1 of the Act by the licensee did not exceed $1 million in the previous 12 calendar months

A cannabis licensee that wishes to file and remit on a quarterly basis must submit a letter requesting approval to their regional excise office. For more information on who can qualify for quarterly reporting and remitting see Excise Duty Notice EDN 76, Budget 2022 – Quarterly Filing and Remitting for Cannabis Licensees.

Inventory of packaged cannabis products or cannabis excise stamps under authorized service agreements

When cannabis products are not sold but transferred between licensees under an authorized service agreement, the responsible person (the licensee who owns the product) must report all inventory movements on their return, whether the product is in their possession or not.

Similarly, when cannabis excise stamps are transferred to another licensee under an authorized service agreement, the responsible person (the licensee who owns the stamps) must report all stamp inventory movements on their return, whether the stamps are in their possession or not.

Any unaccounted-for cannabis product or cannabis excise stamps may be subject to excise duties or penalties payable by the cannabis licensee responsible for the cannabis product/excise stamps.

When to file (send) a cannabis duty and information return

Your return is due by the last day of the calendar month following your reporting period. You have to file a return even if you have:

• no business transactions
• no duty to remit

When a due date falls on a Saturday, a Sunday, or a public holiday recognized by the CRA, your return is considered to be filed on time if we receive it on the next business day.

Methods to file a cannabis duty and information return

As a cannabis licensee, you can file your return using either of the following methods:

• online through My Business Account using the B300 Web Form 
• paper using Form B300, Cannabis Duty and Information Return

If you are also claiming a refund of cannabis duty, use either of the following methods:

• online through My Business Account using the B301 Web Form
• paper using Form B301, Application for a Refund of Cannabis Duty and attaching it to your return

Methods to remit (pay) the cannabis duty

Your payment is due at the same time as your return. For more information on which method you can use, see Payment options for excise duty. 

After sending in a cannabis duty and information return

When the CRA receives your return, it will process your payment (if attached) and send you a notice of assessment of your return. If your payment is not attached, the CRA will assess the amount owing and advise you using one of the following methods:

• If you registered for email notification service, you will receive an email notification that there is mail for you to view in My Business Account
• You will receive a notice of assessment by mail

If you filed a nil return, you will not receive a notice of assessment.

If you have an amount owing

If there is an amount owing and you have registered for email notification service, you will receive an email notification that there is mail for you to view in My Business Account. If you receive a notice of assessment, you will also receive Form RC159, Amount Owing Remittance Voucher.

Use this form to pay any outstanding amount. Form RC159 is not available on the CRA's website; it is only provided in a pre-printed format. To order this personalized form, go to My Business Account, or Represent a Client.

Sending a cannabis duty and information return late or paying late

CRA may charge you penalties and interest if you:

• do not file on time
• receive a demand to file and do not do so
• make a false statement or omission

CRA will charge you interest if you:

• have an overdue amount on your return
• make a late or insufficient payment

The CRA may hold any refund or rebate you are entitled to until it receives all outstanding returns and amounts owing. This includes returns that are required to be filed under other legislation administered by the CRA. The CRA may also use a refund of cannabis duty that you are entitled to receive to off-set your outstanding amounts in accordance with the law.

What records to keep

You must keep all records that will support the information you have provided on your Form B300. This includes the amount of cannabis product produced, received, used, packaged, sold and disposed of, as well as information to support all cannabis duty amounts reported on the return. You must keep your records for a period of at least six years from the end of the last year to which they relate. For more information on the requirement to maintain books and records, see Excise Duty Notice EDN55, Calculation of Cannabis Duty and Additional Cannabis Duty on Cannabis Products.