Excise Tax and the Cannabis Industry Webinar Series

August 03, 2018

Excise Tax and the Cannabis Industry Webinar Series

Synopsis
5 Minute Read

As a licensed cannabis producer or processor, you will be required to register with the Canada Revenue Agency (CRA) to have access to excise tax stamps.

As a licensed cannabis producer or processor, you will be required to register with the Canada Revenue Agency (CRA) by October 17, 2018 to have access to excise tax stamps – or face being shut down.

In this insightful two-part webinar series Harrison Jordan, MNP’s Cannabis Consultant, outlines how to successfully complete the tax agency’s application – and get on with business. Below we have provided a recording of each webinar as well as answers to the questions we received. 

 

 
In the business plan, how many years of operations are needed to submit? If the security is based on the average excise based on 12 months, is this from Oct. 17, 2018 to Oct. 17, 2019 or some other 12 month cut off?

You must show for at least one year in advance, but having a longer history of operation will provide better security in having your business plan approved. You are required to show the CRA at least 12 months from October 18, 2018.

In the business plan are they looking to determine how we are financing construction of facilities or just interested in operations?

More information is better to provide security for your business plan. Financing of construction is not a critical piece of information, but it does not hurt to include this in your plan.

If we are awaiting our heath canada license do we still need to apply before October?

Yes, if you have already applied (or are in the process of applying) to Health Canada, you should register now here

Saskatchewan has an additional 6.45% excise tax - how is this calculated by the packager?

The calculation of the excise task in Saskatchewan's cannabis coordination framework has not been released as of yet. Contact Harrison Jordan at [email protected]

If you haven't yet obtained your license, should you register with CRA for the stamp program and excise tax?

Yes, if you have already applied (or are in the process of applying) to Health Canada, you should register here

How does the stamp regime and execise tax work with exports? For example, we send product to an Alberta airport to be exported.

Exports are not subject to excise tax.

Are there any differences in tax regime and exercise tax between recreational cannabis and medical cannabis?

There aren’t any significant differences. You still need to register for a CRA cannabis license regardless of med or rec, and you still need to register for excise stamp regime if you are packaging cannabis products, regardless of med or rec. However, you do not need to excise stamp any cannabis products you package that has low THC (0.3%)

Where do we start the process for the CRA license- where do we obtain the application?

You can find everything you need to know here.

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