Excise duty needs to be paid by cannabis distributors who supply packaged cannabis products to their customers. The excise duty is calculated based on the sales price of product that is charged to customer. Panni has built functionality in SAGE X3 to calculate the excise taxes/duties payable and this document would explain how the excise taxes/duties payable are calculated in SAGE X3.
The rates used for calculation of the three components of excise taxes would be based on the province of delivery address and the type of cannabis product delivered. In SAGE X3, Panni has developed an Excise tax rates table where user can define the excise tax rates based on province of delivery and packaged cannabis product type.
Initial data entry on this table would be a one-time activity. The data in table would later need to be updated only when there are changes in the rates provided by Canada Revenue Agency.
Product Identifier field in Products Master
Any packaged cannabis product that can be classified within the following product types would be considered excise-dutiable at the time of product delivery:- Cannabis Oil
- Cannabis Extracts
- Edible Cannabis
- Cannabis Topicals
Excise Tax Rates Table
Let us name the rates used for calculating the three components of excise taxes as below.| Excise tax component | Rate |
| Flat-rate cannabis duty | R1 |
| Flat-rate additional cannabis duty | R2 |
| Adjustment to additional cannabis duty | R3 |
Initial data entry on this table would be a one-time activity. The data in table would later need to be updated only when there are changes in the rates provided by Canada Revenue Agency.
