Tobacco Tax

If you sell tobacco products at retail in Québec, you must hold a registration certificate. To obtain a registration certificate, you must register for the Québec sales tax (QST). In some cases, you must also hold one or more permits.

According to the Tobacco Tax Act, you are a retail vendor (retailer) if you sell tobacco products to persons acquiring them for their own consumption or for consumption by others.

However, if you sell tobacco products to persons acquiring them for resale purposes, you are not considered a retail vendor. Moreover, if you sell leaf tobacco or raw tobacco (This link will open a new window) to be used in the composition of a tobacco product intended for sale, you are not considered a retail vendor.

Note

As of January 1, 2012, the rates of the tobacco tax will be changed as follows:

• The rate of 10.6 cents per cigarette will be raised to 10.9 cents per cigarette. 
• The rate of 10.6 cents per gram of loose tobacco or leaf tobacco will be raised to 10.9 cents per gram. 
• The rate of 16.31 cents per gram of any tobacco other than cigarettes, loose tobacco, leaf tobacco and cigars will be raised to 16.77 cents per gram. 
• The higher of the following rates, applicable to a stick or roll of tobacco or to another pre-rolled tobacco product designed for smoking, will be raised:
  • from 10.6 cents to 10.9 cents per stick or roll of tobacco or other pre-rolled tobacco product designed for smoking;
  • from 16.31 cents to 16.77 cents per gram.

As for cigars, the rate of 80% of the taxable price of each cigar will remain unchanged.