Excise taxes

Excise taxes are charged on:

• fuel-inefficient vehicles
• automobile air conditioners
• certain petroleum products

Note
The excise tax on jewellery was eliminated effective May 2, 2006.
The heavy vehicle weight tax was replaced by the fuel-inefficient vehicle tax, effective March 19, 2007.

The Excise Tax Act sets out the rates of tax for each of these goods.

When goods are manufactured in Canada, excise tax is payable at the time the goods are delivered to the purchaser. When they are imported, excise tax is payable by the importer, at the time the goods are imported.

Under certain circumstances, you may be able to claim a refund of the excise taxes you paid.

Manufacturers need an excise tax licence ("E" licence) unless they qualify as a small manufacturer. You qualify as a small manufacturer if your total annual sales are not more than $50,000.

A wholesaler licence ("W" licence) allows you to buy goods for resale without paying excise taxes. You may qualify for a "W" licence under certain limited circumstances, thereby enabling you to buy goods exempt of excise tax and to collect and remit the excise tax at the time you sell the goods.

For more information, contact us at 1-866-330-3304 for service in English or at 1-888-609-0073 for service in French.

Forms and publications

• Form L15, Application for Licence under the Provisions of the Excise Tax Act

Related topics

• Excise Taxes and Special Levies