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

As a cannabis licensee who packages and stamps dried or fresh cannabis, cannabis plants and cannabis plant seeds, the cannabis duty and additional cannabis duty, if applicable, you must pay 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/fresh cannabis, cannabis plant and cannabis plant seed product.

An ad valorem duty

Is imposed when these packaged cannabis products are delivered to a 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/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.

Learn more on how to calculate the cannabis duty, the additional cannabis duty and the adjustment to the additional cannabis duty on dried/fresh cannabis, cannabis plants and cannabis plants seeds: Excise Duty Memorandum EDM6-3, Imposition and payment of duty on cannabis products.

As a cannabis licensee who packages and stamps edible cannabis, cannabis extracts and cannabis topicals, the cannabis duty and, if applicable, additional cannabis duty you must pay a flat-rate duty based on the number of milligrams of total THC in the cannabis product.

This product is not subject to an ad valorem duty rate. The flat-rate duty is imposed when the cannabis product is packaged and becomes payable when you deliver the cannabis product to a purchaser.

For 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.

Learn more on how to calculate the cannabis duty, additional cannabis duty and adjustment to the additional cannabis duty on edible cannabis, cannabis extracts and cannabis topicals: Excise Duty Memorandum EDM6-3, Imposition and payment of duty on cannabis products.