Licensed cannabis producers are subject to a federal excise duty when delivering their products. Federal law requires that an excise stamp be affixed on all cannabis products that are intended for retail sale. The only exception is for low-THC cannabis products, prescription cannabis drugs, and exported products. To buy cannabis excise stamps, a person must have a cannabis license from the Canada Revenue Agency (CRA), which is responsible for collecting federal duties and taxes. This license should be obtained before production. To qualify for a CRA cannabis license, applicants must also get a license from Health Canada. You can register for both these licenses simultaneously. Once you have both licenses, the following is required:
1. Purchase and apply cannabis excise stamps to products
- To register for the cannabis stamp, use Form L301, Registration for Cannabis Stamping Regime. You may be asked to provide more information.
- If no additional information is required, a letter will be sent to confirm your registration, along with instructions on how to purchase.
- For more information, Excise Duty Notice EDN54, General Overview of the Cannabis Excise Stamps.
2. Calculate the duty on sales
- For imported cannabis products, the importer is responsible for paying the duty.
- To calculate the cannabis duty see this chart.
3. File their return and remit excise duty to the CRA
- Monthly returns must be filed to report inventories for all cannabis licensees. Additional info can be found here.
