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Jewellery Tax & Duties


MILLAR KREKLEWETZ LLP is a boutique Canadian law firm with lawyers who have significant expertise in assisting businesses with Canadian tax and customs matters regarding jewellery.

The following is a short introduction to our services in this area.

Jewellery Tax & Duties

Previous Taxation of Jewellery

Previously, manufacturers paid an excise tax of 10% on the sale price of jewellery manufactured in Canada , and importers paid an excise tax of 10% on the duty-paid value of imported jewellery, pursuant to section 5 of Schedule I of the Excise Tax Act. Some exceptions to this general rule included religious articles, watches less than $50, and gems and jewellery under $3.

Current Taxation of Jewellery

For a brief time in 2005 and 2006, and due to an anomaly that resulted in the passing of Bills C-43 and C-259, it was unclear whether the excise tax on jewellery was completely eliminated, or whether the tax still applied, albeit at a reduced rate.

However, effective May, 2006, the excise tax on jewellery in Canada was officially repealed. Accordingly, jewellery in Canada is no longer subject to any excise tax.

The Canada Revenue Agency (the CRA) may however still assess persons for tax on jewellery relating to any period before May, 2006.

Customs Duties on Jewellery

In addition to any taxes payable, jewellery imported into Canada will be subject to the payment of customs duties.

The rate of customs duty on jewellery is generally set out in Chapter 71 of Canadas Customs Tariff, and ranges between 0% to 8.5%, depending on the type of jewellery imported and the country from which it originates.

Millar Kreklewetz LLP has significant experience relating to tax and customs duties for jewellery. In addition in providing advice on the application of the tax and duties, Millar Kreklewetz LLP is also well placed to objecting to and litigating any assessment issued relating to jewellery tax and duties.

Toronto Office

10 Lower Spadina Avenue, Suite 200, Toronto, Ontario, M5V 2Z2 Canada
Phone: (416) 864-6200| Fax: (416) 864-6201

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