Collecting the Tobacco Tax
A retail vendor (retailer) must collect the tobacco tax on all tobacco products sold in Québec. However, the tobacco tax amount does not need to be shown on receipts given to customers.
For the tobacco tax rates, see the Tobacco Tax Rate Table (TA-1-V).
The retailer must also collect the GST on tobacco products. The GST is calculated on the price including the tobacco tax.
Tobacco products are zero-rated with respect to the QST; therefore, the retailer does not have to collect this tax.
If you make retail sales of tobacco products in Québec, you are a mandatary of Revenu Québec and must collect the tobacco tax from consumers at the time of the sale.
See Reporting and Remitting the Tobacco Tax – Retail Vendors (Retailers) for information on reporting and remitting the tobacco tax.
If you sell tobacco products at wholesale, you are a mandatary of Revenu Québec and, as such, are generally required to collect an amount equal to the tobacco tax. You must then file a return and remit the amounts you collected to us.
You must collect amounts from every person to whom you sell or deliver (or cause to be delivered) tobacco whose packaging is identified in accordance with the Tobacco Tax Act, or any other packages of tobacco intended for retail sale in Québec. However, this requirement does not apply if you sell tobacco products to another collection officer under agreement.
Revenu Québec can enter into an agreement with any permit holder (collection officer, importer, manufacturer, storer or carrier of bulk tobacco) in order to:
- facilitate the collection and remittance of tax amounts as prescribed under the Tobacco Tax Act;
- prevent the tax from being paid twice with respect to the same tobacco.
See Reporting and Remitting the Tobacco Tax – Wholesale Vendors (Wholesalers) for information on reporting and remitting the tobacco tax.