Newfoundland and Labrador to Impose Tax on Vapour Products

Newfoundland and Labrador has published Notice, Tax on Vapour Products, which outlines that tax at 20% will be imposed on vapour products sold in the province, effective at midnight January 1, 2021. The province describes vapour products as a vaping device, a vaping substance, or a vaping package and expands on each of these terms.

The notice advises retailers of vapour products they are required to post their licences in a conspicuous place in their stores. Starting in February 2021, retailers will be required to file a return on or before the 20^th day of each calendar month along with the associated remittance. Additionally, a licence is required to sell or store vapour products in the province as a wholesale operation. Wholesalers must also verify the existence of licences for all of their wholesale and retail customers.

Both retailers and wholesalers of vapour products are required to follow the guidelines with respect to detailed invoicing and receipts. Maintaining proper books and records is also required, and penalties will be imposed for lack of compliance.