Understand Tobacco Tax
Overview
Suppliers of non-tax paid tobacco and retail vendors are required to obtain a licence to operate in Saskatchewan.
Effective 12:01 a.m., March 24, 2022, the tax rate for cigarettes and cigarette sticks is 29 cents per stick. Smokeless tobacco and other tobacco (including raw leaf) is 35 cents per gram. Heated tobacco products is 21.8 cents per unit (stick, capsule or cartridge).
Cigars continue to be taxed at 100% of the taxable value of a cigar. A minimum tax of 35 cents per cigar and a maximum tax of $5.00 per cigar is applied.
Licensed tobacco importers must file a Tobacco Tax return by the 20th of the month following the purchase of their tobacco products.
Eligibility
Licensed tobacco suppliers must file Tobacco Tax returns on a monthly basis.
Additional Information
Obtain an Inventory Declaration or a copy of the Tobacco Tax Return
Tobacco Tax Return
Use this template to complete your tobacco tax return. Note that this template is also available once you are logged in to SETS.
The Ministry of Finance recommends using the form built in to SETS rather than the template, where reasonable (i.e. 50 or fewer rows of data).
Inventory Declaration Form
Apply for a Tobacco Supplier Licence
Overview
Tobacco suppliers include manufacturers of tobacco in Saskatchewan, importers of tobacco for commercial purposes and wholesalers of tobacco to retailers. All suppliers are required to obtain a tobacco tax supplier licence. Some suppliers may also be required to become tax memo filers. See the Tobacco Tax Reporting section for more information on tax memos.
Tobacco suppliers that also sell tobacco at retail are also required to obtain Tobacco Retailer Licences for each retail location.
Eligibility
To obtain a Tobacco Supplier Licence the following must be provided:
- a completed Tobacco Tax Supplier License Application ;
- a comprehensive business plan and a copy of the most recent financial statement of the applicant ;
- names of all business owners, directors, partners, shareholders, officers, employees, contractors, and any other person dealing directly with the ownership of the business;
- tobacco types intended to be sold including product category, estimated sales and documentation to support that products are marked correctly for distribution in Saskatchewan;
- information regarding the source of the supply of tobacco products including raw leaf tobacco;
- location(s) where tobacco is to be sold and/or stored;
- details of security measures in place for the storage of tobacco;
- security in the form of a bond or letter of credit; and
- information concerning any other licences, permits or other authorizations relevant to tobacco held or intended to be held by the person making the application that are issued or may be issued by Saskatchewan, Canada, another province or territory of Canada, another country or a state within that country.;
In addition to the above information, manufacturers must include:
- the products to be manufactured, packaging type and size, as well as production volume for each;
- the supply source(s) of raw leaf tobacco; and
- where the raw leaf tobacco is to be stored, and the location where the manufacturing is to be carried out and the finished tobacco is to be stored.
Note: The Ministry of Finance may require a background check to be provided for:
- the applicant;
- a partner, shareholder, director, officer, employee or contractor of the applicant;
- a person performing some or all of the functions of a director; and
- any person not dealing at arm’s length commercially with the applicant in relation to the business.
How to Apply
Complete and return a Tobacco Tax Supplier Licence Application to:
Email: SaskTaxInfo@gov.sk.ca
Write:
Ministry of Finance
Revenue Division
PO Box 200
Regina, SK S4P 2Z6
Apply for a Tobacco Retailer Licence
Overview
All tobacco retailers will be required to obtain a licence to retail tobacco and to purchase tobacco from a licensed wholesaler starting October 1, 2024, and will be required to be licensed by December 31, 2024. If a retail entity has more than one location, each location is required to obtain a separate licence. Multiple locations may be applied for on one application.
First Nations retailers are not required to apply for a tobacco retailer licence. The Ministry of Finance will issue a licence to all First Nation retailers that file through the Real Time Validation System.
While retailers are required to maintain a licence to sell tobacco in Saskatchewan, there is no reporting requirement.
To become a licensed retailer of tobacco products you must complete an application form.
How to Apply
Complete and submit a Tobacco Tax Retailer Licence Application to:
Email: SaskTaxInfo@gov.sk.ca
Write:
Ministry of Finance
Revenue Division
PO Box 200
Regina, SK S4P 2Z6
Request a Tobacco Tax Refund on Stolen Tobacco
Licensed importers and retailers may claim a credit/refund of tax paid on tobacco stolen from a wholesale or retail outlet by submitting
- Invoices;
- A police file number; and
- A copy of their insurer’s report to:
Ministry of Finance
Revenue Division
P.O. Box 200
Regina, SK S4P 2Z6
Apply for the Tobacco Competition Assistance Program
Overview
Tobacco tax retailers located along the Alberta border may be eligible for competition assistance for tax paid on marked tobacco products. The level of assistance is based on the tax rate differential between Saskatchewan and Alberta and the shortest distance as measured by a public road between the tobacco retailer and the nearest competition in Alberta.
Eligibility
Tobacco retailers located in the communities of Lloydminster, Onion Lake, or up to 48 kilometers by public highway from the nearest tobacco retail dealer in Alberta.
How to Apply
Submit a completed Application for Tobacco Competition Assistance
Submit the completed form by email to taxprogramsincentives@gov.sk.ca or mail to:
Ministry of Finance
Revenue Division
PO Box 200
Regina, SK S4P 2Z6
