Canada Updates Alcohol Excise Tax Rules

Canada has updated its technical guidance on excise taxes for alcoholic beverages through a new set of notices posted in the tax section of Canada.ca, reflecting changes under the Excise Act and the Excise Act, 2001 and setting out the Canada Revenue Agency’s current rules for beer, wine and spirits from April 2025 through April 2026.

For spirits and wine, the list includes EDN100, which set adjusted excise duty rates effective April 1, 2025 and was canceled on April 1, 2026. It also includes EDN103, which addresses excise tax liability for packaged alcohol removed from a bonded warehouse, and EDN104, which establishes the new adjusted rates for spirits and wine effective April 1, 2026.

For beer, Canada.ca now includes EDBN31, which removes excise duty on non-alcoholic beer, changing how that category is taxed. The site also lists EDBN34, which sets filing and payment schedules for Form K50B for brewers from January 2025 through December 2027. On rates, EDBN35 set the adjusted excise duty rates effective April 1, 2025 and was canceled on April 1, 2026, while EDBN36 now governs the new adjusted beer excise duty rates beginning April 1, 2026.

The update gives producers, importers and other operators a clearer timeline for the shift between the rates in force in 2025 and those taking effect in 2026. It also clarifies obligations tied to bonded storage, product removal and reporting deadlines as Canada continues to apply annual adjustments across its alcohol tax system.