Cannabis duty – Calculate the excise duty on cannabis

The information described on this webpage is based on the Excise Act, 2001 and its regulations including proposed amendments under Bill C-97, Budget Implementation Act, 2019, No. 1.

Who must pay the cannabis duty

A cannabis licensee who packages cannabis products must pay the applicable duties.

For cannabis products that are imported, the person who must pay the duty is the importer, owner or other person who is liable under the Customs Act. A cannabis licensee does not have to pay the duty at the time of importation.

GST/HST also applies to cannabis products. For more information, see Charge the GST/HST.

How to calculate the cannabis duty and additional cannabis duty on your sales

Dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds

As a cannabis licensee who packages and stamps dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, the cannabis duty and additional cannabis duty, if applicable, you must pay is the higher of:

  • a flat-rate duty
  • an ad valorem duty

A flat-rate duty is imposed when these cannabis products are packaged. It is based on the quantity of flowering and non-flowering material, viable seeds or vegetative cannabis plants included in the dried cannabis, fresh cannabis, cannabis plant and cannabis plant seed product. An ad valorem duty is imposed when these cannabis products are delivered to the purchaser. It is based on the dutiable amount of the cannabis product. If the two duties are equal, the flat-rate duty is payable.

The cannabis duty and additional cannabis duty, if applicable, is payable when you deliver these cannabis products to a purchaser. You must keep track of the flat-rate duty and the ad valorem duty and report the higher duty payable on a transaction-by-transaction basis.

For dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds delivered to a purchaser in Alberta, Nunavut, Ontario or Saskatchewan, there is also an adjustment to the additional cannabis duty that is required to be calculated.

For more information on how to calculate the cannabis duty, the additional cannabis duty and the adjustment to the additional cannabis duty on dried cannabis, fresh cannabis, cannabis plants and cannabis plants seeds, see Excise Duty Notice EDN55, Calculation of Cannabis Duty and Additional Cannabis Duty on Cannabis Products.

Cannabis oil, edible cannabis, cannabis extracts and cannabis topicals

As a cannabis licensee who packages and stamps cannabis oil, the cannabis duty and, if applicable, additional cannabis duty you must pay is a flat-rate duty based on the number of milligrams of total THC in the cannabis oil. This product is not subject to an ad valorem duty rate. The flat-rate duty is imposed when the cannabis oil is packaged and becomes payable when you deliver the cannabis oil to a purchaser.

Similar to cannabis oil, the cannabis duty and, if applicable, additional cannabis duty imposed on edible cannabis, cannabis extracts and cannabis topicals, will be a flat-rate duty imposed on the number of milligrams of total THC contained in these cannabis products imposed at the time of packaging and payable at the time of delivery to a purchaser. These products will also not be subject to an ad valorem duty rate.

For cannabis oil, edible cannabis, cannabis extracts and cannabis topicals delivered to a purchaser in Alberta, Nunavut, Ontario or Saskatchewan, there is also an adjustment to the additional cannabis duty that is required to be calculated.

For more information on how to calculate the cannabis duty, additional cannabis duty and adjustment to the additional cannabis duty on cannabis oil, edible cannabis, cannabis extracts and cannabis topicals, see Excise Duty Notice EDN60, Calculation of Cannabis Duty and Additional Cannabis Duty on Cannabis Oil, Edible Cannabis, Cannabis Extracts and Cannabis Topicals.

Rates of cannabis duty and additional cannabis duty
 Cannabis product Cannabis duty

Additional cannabis duty

(not applicable in Manitoba)

Flat-rate Ad valorem Flat-rate Ad valorem
Dried/fresh cannabis

$0.25/gram of flowering material

$0.075/gram of non-flowering material

2.5% of the dutiable amount for the cannabis product

$0.75/gram of flowering material

$0.225/gram of non-flowering material

7.5% of the dutiable amount for the cannabis product
Cannabis plants and cannabis plant seeds

$0.25/plant

$0.25/seed

2.5% of the dutiable amount for the cannabis product

$0.75/plant

$0.75/seed

7.5% of the dutiable amount for the cannabis product
Cannabis oil, edible cannabis, cannabis extracts and cannabis topicals $0.0025/milligram of total THC 0% of the dutiable amount for the cannabis product $0.0075/milligram of total THC 0% of the dutiable amount for the cannabis product

Adjustment rates for the additional cannabis duty in listed specified provinces

The adjustment rates for the additional cannabis duty required when packaged and stamped cannabis products are delivered to a purchaser in a listed specified province are as follows:

  • Alberta, 16.8%
  • Nunavut, 19.3%
  • Ontario, 3.9%
  • Saskatchewan, 6.45%

How to report the cannabis duty and additional cannabis payable

At the end of each month, you must report and remit the duties on cannabis payable in the previous month using Form B300, Cannabis Duty and Information Return.

What records to keep

You must keep all records that will support the information you provide on your Form B300. This includes the amount of cannabis product produced, received, used, packaged, sold and disposed of, as well as the milligrams of total THC contained in cannabis oil, edible cannabis, cannabis extracts and cannabis topicals produced and packaged.

You must be able to support the cannabis duty that you reported as payable.

You must keep your records for a period of at least 6 years from the end of the last year to which they relate.

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