Completing a vaping duty and information return – vaping product licensee

Completing a vaping duty and information return – vaping product licensee

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This page provides line-by-line instructions on how to fill out Form B600, Vaping Duty and Information Return, which is required to be filed monthly by vaping product licensees under the Excise Act, 2001.

Instructions for Part A: Business information

Part A of the return is used to identify the vaping product licensee. Current and accurate information is required for each field as follows:

Business information

Provide the legal name and the business number of the account for which the return is being filed. If the legal name of the business has changed, you need to contact your CRA regional excise office to report the change. A list of the offices is available at Contact Information – Excise Duty, Excise Taxes, Fuel Charge and Air Travellers Security Charge.

Physical business location

Provide the address of the physical location of the premises for which the return is being filed. If the return being filed is a consolidated return for more than one premises, provide the physical location of the filing account. If the physical address of the business has changed, you need to contact your CRA regional excise office to report the change.

Type of return

If you are filing a return for a reporting period for which you already have submitted a return, select "Amended." Otherwise, select "Original."

Reporting period

Identify the start and end dates of the calendar month for which the return is being filed. If the return does not cover a full calendar month because you received or cancelled your licence partway through a calendar month, enter the start and end dates that cover your operations for that particular calendar month.

Instructions for Part B: Vaping product inventory – Unpackaged

Details for each unpackaged product should be reported in this section in the proper unit of measure, either Litres (L) or Kilograms (Kg). The ending inventory reported should match the physical ending inventory.

There are two categories of vaping products reported in this part, the first column is for inventory of liquid vaping substances and the second column is for inventory of solid vaping substances. The details required to be reported under the inventory columns are as follows:

Opening inventory (line A)

The opening inventory of unpackaged vaping products on the return must equal the last calendar month's closing inventory for each respective product. Enter amounts for "Opening inventory" under the applicable columns of line A.

Additions to inventory

Total production

Enter the total quantity of vaping substances produced during the reporting period for each applicable category of product and in the corresponding unit of measure.

Total production is the manufacturing in a licensed facility of individual vaping substances, including but not limited to vegetable glycerin (VG), propylene glycol (PG), flavouring, and nicotine. The mixing of two or more of VG, PG, flavouring and nicotine together would not be reported on this line.

Quantity obtained from Canada

Enter the total quantity of vaping substances received from within Canada during the reporting period for each applicable category of product and in the corresponding unit of measure. This would include the individual ingredients of VG, PG, flavouring, and nicotine received for further manufacturing. For example, the amount of vegetable glycerin purchased from a facility in Canada that is received at the licensed premises would be recorded as quantity received in Canada.

Quantity imported into Canada

Enter the total quantity of vaping substances imported into Canada during the reporting period for each applicable category of product and in the corresponding unit of measure (Litres/Kg). Similar to “Quantity received in Canada”, all ingredients imported into the licensed premises would need to be reported on this line, in the appropriate column.

Total additions (line B)

Add the quantities in each column under the "Additions to inventory" section and enter the result on line B.

Reductions to inventory

Quantity packaged (Stamped)

Enter the total quantity of vaping products packaged during the reporting period for each applicable category of product in the corresponding unit of measure. Vaping products are considered to be packaged when they are placed in the smallest consumer package (including any outer wrapper, package, box, or other container) with all required labels affixed and are ready for sale to a consumer. Applying a vaping excise stamp is not considered to be a part of packaging.

For example, 50 Litres of liquid vaping substance is packaged into 30 mL bottles that are ready for sale to a consumer (in other words, no further packaging is required). This would be reported as a 50.000 Litre reduction to vaping liquid on this line.

If any losses were incurred in the packaging process, report the final packaged amount on this line and any losses on the “Quantity incurred as a processing loss” line below.

Vaping products that are only partially packaged, but still require final packaging steps, would not be reported as a reduction to inventory until they are in their final package.

Quantity packaged (Unstamped) – Removed to excise warehouse

Enter the total quantity of vaping products packaged and removed to an excise warehouse during the reporting period for each applicable category of product in the corresponding unit of measure.

Vaping products that are packaged and not stamped must immediately be entered into an excise warehouse, unless it is a vaping product drug. Vaping products that are entered into an excise warehouse are products that will be exported or sold to an accredited representative for their use.

Quantity packaged (Unstamped) – Vaping product drug

Enter the total quantity of vaping products, that are vaping product drugs, packaged during the reporting period for each applicable category of product in the corresponding unit of measure. A vaping product drug is a vaping product that has been assigned a drug identification number under the Food and Drug Regulations. Vaping product drugs are exempt from vaping duty.

Quantity delivered in Canada

Enter the total quantity of unpackaged vaping products sold or delivered to other vaping product licensees during the reporting period for each applicable category of product and in the corresponding unit of measure.

Quantity exported outside Canada

Enter the total quantity of unpackaged vaping products exported from Canada during the reporting period for each applicable category of product and in the corresponding unit of measure.

Quantity incurred as a processing loss

Enter, in Litres or Kg, any amounts incurred through any processing losses. These could include, but are not limited to, losses incurred during packaging, and losses incurred during product blending.

For example, if 50 L of vaping substance is packaged into 1,666 bottles of 30 mL each, totalling 49,980 mL or 49.980 L, there would be a processing loss of 20 mL or 0.020 L. The loss incurred would be reported as “Quantity incurred as a processing loss”.

Note: The books and records of the vaping product licensee must substantiate any processing losses reported.

Quantity destroyed

Enter the total quantity of vaping products destroyed during the reporting period for each applicable category of product and in the corresponding unit of measure.

Note: In accordance with section 158.66, the destruction of any vaping product must be done in a manner that has been approved by the CRA.

Quantity sent for analysis

Enter the total quantity of vaping products sent for analysis during the reporting period for each applicable category of product and in the corresponding unit of measure.

Note: In accordance with section 158.66, any vaping product sent for analysis must be done in a manner that has been approved by the CRA.

Other

Enter the total quantity for reductions that do not fall into any of the above categories for reductions to unpackaged inventory that occurred in the reporting period for each applicable category of product and in the corresponding unit of measure.

Total reductions (line C)

Add the quantities in each column under the "Reductions to inventory" section and enter the result on line C.

Inventory adjustments (line D)

Adjustments may be necessary to balance the physical inventory with the book inventory. The closing or book inventory must agree with the physical inventory for the reporting period. All adjusting entries are subject to audit and must be entered as "Inventory adjustments" on line D.

Closing inventory

The closing inventory is the sum of lines A and B, minus line C, plus or minus any adjustments on line D, and the result is entered on this line:

(A + B) – C ± D

The closing inventory of unpackaged vaping products will become the opening inventory for the following reporting period.

Instructions for Part C: Vaping excise stamp inventory

This section requires an inventory reconciliation of the vaping excise stamps for each reporting period. Inventory reporting is required to be conducted based on the jurisdiction of the stamp. Currently, since no provinces or territories have joined a coordinated framework, the only jurisdiction available is Canada. For more information regarding vaping excise stamps, see Excise Duty Notice EDN80, Overview of the Vaping Excise Stamps.

Opening inventory (column A)

The opening stamp inventory on the return must equal the previous reporting period’s closing inventory for each jurisdiction. Enter amounts for "Opening inventory" for each jurisdiction.

Stamps received (column B)

Enter the quantity of vaping excise stamps received during the reporting period from the authorized vaping excise stamp provider in this column, for each applicable jurisdiction.

Stamps used for products (column C)

Enter the quantity of stamps affixed to vaping products during the reporting period in this column, for each jurisdiction.

Destroyed stamps (column D)

Enter the quantity of stamps that were destroyed during the reporting period in the column, for each jurisdiction.

Note: Prior to destroying any vaping excise stamps, you must obtain approval from your regional excise office. A list of the offices is available at Contact Information – Excise Duty, Excise Taxes, Fuel Charge and Air Travellers Security Charge. Failure to do so may result in a penalty for unaccounted for stamps.

Inventory adjustments (column E)

Adjustments may be necessary to balance the physical inventory with the book inventory. The closing or book inventory must agree with the physical inventory for the reporting period. All adjusting entries are subject to audit and must be entered as "Inventory adjustments" in column E.

Closing inventory (column F)

The closing inventory is the sum of columns A and B, minus columns C and D, plus or minus any adjustments in column E, and the results for each respective jurisdiction are entered in this column F:

A + B – C – D ± E

This closing inventory of vaping excise stamps will become the opening inventory for the following reporting period, for each respective jurisdiction.

Instructions for Part D: Calculation of duty payable

This section consists of subsections that must be completed for both categories of vaping products (vaping liquids and vaping solids). For each category of vaping product packaged in the reporting period, enter the following amounts in the applicable column for each jurisdiction:

  • number of packages and total volume or weight (L/Kg) for vaping product not more than 10 mL (vaping liquids) or 10 g (vaping solids)
  • number of packages and total volume or weight (L/Kg) for vaping product more than 10 mL (vaping liquids) or 10 g (vaping solids)
  • the total amount of vaping duty

Note: The final package size will determine under which section to report the vaping product. For example, if a vaping liquid was packaged into 30 mL bottles, this would be reported under the “Vaping product more than 10 mL” section. If a vaping liquid was packaged into 4 x 2 mL pod packages (8 mL total in the package), this would be reported under the “Vaping product not more than 10 mL” section.

Enter the totals for each vaping duty and additional vaping duty column in field 1 to 8, as applicable.

For additional information on the imposition and payment of excise duty on vaping products, see Excise Duty Notice EDN78, General Information – Vaping Products, Excise Duty Notice EDN82, Calculation of Vaping Duty.

Calculation of total net amount

Vaping duty payable (line 9)

The vaping duty payable for all vaping products packaged during the reporting period is the sum of lines 1 to 4, and this amount is entered on line 9.

Additional vaping duty payable (line 10)

Currently, no additional vaping duty is applicable because there are no provinces or territories that have joined a coordinated framework.

Total (line 11)

The total is the sum of the vaping duty payable (line 9) and additional vaping duty payable (line 10) during the reporting period:

line 9 + line 10 = line 11

Refund (line 12)

Enter the amount reported on line 3 of Form B602, Application for a Refund of Vaping Duty on line 12. Form B602 must be attached to Form B600.

Net amount (line 13)

Enter the net amount due by subtracting line 12 from line 11.

Instructions for Part E: Certification

An authorized person must print their name and title, sign and date the return, and provide a current telephone number. Enter the complete name and telephone number of a person who may be contacted about the vaping duty and information return.

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