After you apply
Your application for a cannabis licence is not an approval to start your business activities relating to cannabis.
The CRA will review your application to determine if you are eligible for a cannabis licence based on the information provided on your Form L300. The CRA may contact you if more information is necessary.
Upon meeting the eligibility criteria, you will receive a letter to confirm your CRA cannabis licence approval and tell you your new excise duty program account number.
You can only start to produce cannabis products after you receive licences from both the CRA and Health Canada.
Learn how to register with Health Canada: Cannabis in Canada.
Your responsibilities as a cannabis licensee
As a cannabis licensee, you must:
- register for the cannabis stamping regime (if you are packaging cannabis products for final sale or another licensee is packaging and/or stamping your cannabis products for final sale on your behalf under an authorized service agreement)
- calculate the duties imposed on cannabis
- report (send) and remit (pay) the duty payable on cannabis using Form B300, Cannabis Duty and Information Return
- report your unpackaged and packaged cannabis product inventories using Form B300
- keep all your supporting documents for at least six years to support all aspects of your operations
- apply for a licence renewal at least 30 days before the expiry of your licence (your licence is valid for a maximum of five years)
You must tell the CRA immediately if any information you provided in your licence application has changed or is no longer accurate.
Get the contact information of the regional excise offices: Contact information – Excise and Specialty Tax Directorate.
Learn more: Excise Duty Memorandum EDM6-2, Obtaining and renewing a cannabis licence.
Conditions to suspend or cancel your cannabis licence
The CRA can suspend or cancel your licence if you no longer meet the conditions to be a licensee.
These reasons include but are not limited to:
- You are bankrupt
- You stop cultivating, producing or packaging cannabis products
- You fail to comply with any Act for the taxation or control of alcohol, tobacco, cannabis, or vaping products
- You act to defraud His Majesty
- You fail to notify the CRA of any changes to your licensing information as required by legislation
If a change of legal entity occurs (for example, a proprietorship incorporates), you would have to apply for a new licence using Form L300 and your existing cannabis licence would be cancelled.
If a licence is not being cancelled at your request, the CRA will send you a written notice at least 90 days before the proposed cancellation date of your licence. You have 90 days from the date of notification to provide the reason why the licence should not be cancelled.
Learn more: Excise Duty Memorandum EDM6-2, Obtaining and renewing a cannabis licence.