Tobacco Manufacturer and Vendor Licensing

This section provides information for tobacco manufacturers, tobacco wholesale vendors and tobacco retail vendors on licensing requirements under the Tobacco Tax Act and Tobacco Tax Act Regulations.

Are there licensing requirements for a tobacco manufacturer?

Tobacco manufacturers that are active in Prince Edward Island must apply to the Provincial Tax Commissioner for a tobacco manufacturer’s license to operate in the province using the form Application for a Tobacco Manufacturer’s, Wholesale Vendor License and/or Marking /Marking Exemption Permit.

The tobacco manufacturer must also apply to the Provincial Tax Commissioner for a tobacco marking permit or a tobacco marking exemption permit. Permit applications are included on the Application for a Tobacco Manufacturer’s, Wholesale Vendor License and/or Marking /Marking Exemption Permit form.

Are there licensing requirements for a tobacco wholesaler?

Tobacco wholesalers that are active in Prince Edward Island must apply to the Provincial Tax Commissioner for a wholesaler’s vendor license to operate in the province using the form Application for a Tobacco Manufacturer’s, Wholesale Vendor License and/or Marking /Marking Exemption Permit.

The Provincial Tax Commissioner may require an applicant for a wholesale vendor’s license to deposit a bond in the form of cash or other security acceptable to the Commissioner. The minimum value of the bond is five thousand dollars, and the maximum is not to exceed an amount equal to six times the estimated monthly tax collected by the wholesale vendor.

Licenses and permits are non-transferable.

Why would a bond be required by the Provincial Tax Commissioner?

In a situation where a licensed wholesale vendor does not collect or remit tobacco tax as required under the Tobacco Tax Act or the Revenue Administration Act the Provincial Tax Commissioner can apply the bond to the amount that should have been collected and remitted by the wholesale vendor.

Are there licensing requirements for a tobacco retailer?

Tobacco retailers who are active in Prince Edward Island must apply to the Provincial Tax Commissioner for a license to operate in the province using the form Application for a Tobacco Retail Vendor’s License.

If the applicant is a corporation, a copy of the certificate of incorporation must be submitted with the application.

Licenses are non-transferable.

Retail vendors must ensure that a copy of the retail vendor’s license is prominently displayed at each retail location that is covered by the license. If tobacco sales are to be made by the license holder at a new location not covered by the license, the retail vendor must apply for an amendment to their retail vendor’s license using the Application for a Tobacco Retail Vendor’s License form.

Can tobacco licenses or permits for manufacturers, wholesalers or retailers be refused, suspended or cancelled?

The Provincial Tax Commissioner may refuse to issue a license or permit if the applicant has been convicted of a violation of:

  1. any provision of the Tobacco Tax Act or the Revenue Administration Act; or
  2. any provision relating to tobacco in any other Act of the Legislative Assembly or the Parliament of Canada; or
  3. any provision relating to tobacco in any regulations made under the Tobacco Tax Act or the Revenue Administration Act or any other Act of the Legislative Assembly or the Parliament of Canada.

The Provincial Tax Commissioner can also suspend or cancel a license or permit if the manufacturer, wholesaler or retailer has:

  1. failed to comply with any provision of the Tobacco Tax Act or the Revenue Administration Act or any regulations made under the Tobacco Tax Act or the Revenue Administration Act; or
  2. been convicted of a violation of any provision relating to tobacco in any other Act of the Legislative Assembly or the Parliament of Canada or any regulations related to tobacco made under any other Act of the Legislative Assembly or the Parliament of Canada. 

How is important information on licensing communicated to Tobacco Tax manufacturers, wholesalers and retailers?

A formal Tobacco Tax Notice - Licensing is produced and posted on our website whenever there is important information regarding licensing to be communicated to Tobacco Tax manufacturers, wholesalers and retailers. If applicable, notices are also forwarded by email and/or mail to respective tobacco tax manufacturers, wholesalers, and retailers. 

 

Disclaimer: This page is prepared for information purposes only, and should not be considered a substitute for the applicable statutes. Should there be any conflict between the contents of this page and the statutes, the statutes shall prevail.
Published date: 
April 5, 2017
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Phone: (902) 368-4070
Fax: (902) 368-6164

taxandland@gov.pe.ca