CRA Issues Notice on Cannabis Duty Calculation

The Canada Revenue Agency has issued Notice EDN55, “Calculation of Cannabis Duty and Additional Cannabis Duty on Cannabis Products”, which outlines the various rates for the calculation of the federal cannabis duty and additional cannabis duty (where applicable) on these recently legalized products.

Furthermore, the listed specified provinces of Alberta, Nunavut, Ontario, and Saskatchewan impose additional adjustment rates when packaged and stamped cannabis products are delivered to purchasers in these provinces.  The complex calculations necessary to determine the cannabis duty and additional cannabis duty payable are outlined in the publication, including examples.  In addition, the publication notes the detailed records and documentation that cannabis licensees are required to retain regarding flowering and non-flowering ingredients, production, sales, purchases, disposals, and deliveries.