If you’re a distributor or merchant in Canada selling beverages, most provinces and territories require you legally to charge deposit fees on specific types of containers. These fees are usually small, between 5¢ and 20¢, and will vary depending on the provincial regulations. Non-compliance can result in hefty fines and harm your store’s reputation.
Building fees into the total price can lead to a lack of transparency, customer confusion, and difficulty reporting and remitting fees. Separating fees as line items on receipts resolves these issues.
Since Shopify doesn’t offer built-in tools to charge and manage these fees effectively, using an app like Magical Products Fees makes it easy to charge and manage container fees. This helps you achieve compliance, increase transparency with your customers, and avoid penalties.
What Are Container Deposit Fees?
Container deposit fees, or bottle deposit fees, are small deposits of about 5 – 15¢ that are charged on certain beverages in Canada. Customers will pay this deposit and be eligible for a refund if they return the bottle for recycling. This creates an incentive to return beverage containers, which boosts overall recycling rates and has major benefits for environmental sustainability.
I’ve seen firsthand how deposit programs encourage recycling. For example, when I buy Muskoka Brewery beer in Ontario, I pay a small deposit upfront. Returning the cans to The Beer Store not only gets me my deposit back, but I usually apply it toward my next purchase, giving me an extra reason to return.
Most provinces and territories have two types of container fees. There is often a refundable fee, known as the Container Deposit, which customers can get back by returning the container, and there is often a non-refundable fee, usually known as a Container Recycling Fee, that supports recycling programs and isn’t returned to the customer.
Do I Have to Charge Container Deposit Fees?
Most provinces and territories in Canada, except Nunavut, have bottle deposit programs. Most of these programs require businesses selling regulated beverage containers to charge deposit fees. If you sell these products, the answer is Yes, you need to charge container deposit fees.
The refundable container deposit fee must be charged by both distributors and merchants. The non-refundable recycling fee is usually charged by distributors only, however merchants can choose to pass this fee onto consumers if they wish.
Each province has regulations that set the amount of the deposit fee and recycling fee, the types of containers covered, and how the program is enforced.
Non-compliance can lead to serious consequences. For example in British Columbia, violations of the Recycling Regulation under the Environmental Management Act can result in administrative penalties of up to $75,000.
Failing to charge container deposit fees could lead to a damaged reputation, too. The container fee program helps to reduce waste, supports provincial recycling programs, and appeals to eco-conscious shoppers. If you are found to be non-compliant, consumers could view your business as environmentally negligent.
Some businesses choose to build container deposit fees and recycling fees into product prices for simplicity, but this can lead to customer confusion. It may also make it more difficult to remit unclaimed fees since container deposit fees are usually not taxable in Canada.
Displaying and labelling container deposit fees ensures compliance, builds trust with your customers, and simplifies the tax remittance process.
Charging Taxes
In Canada, container deposits are not subject to GST/HST when they are charged at the time of sale. This is because the deposit is considered a separate amount intended to be refunded when the container is returned. Container recycling fees however are generally taxable.
For example, if you purchase wine or spirits from the LCBO (Ontario’s Liquor Store) you’ll notice the receipt will separate bottle deposit fees from the rest of the total. Tax is not calculated on these fees.
The Canada Revenue Agency recommends that the deposit paid by the consumer be treated as a non-taxable amount and may be included in the product’s total price or listed separately. This provides businesses with some flexibility on how they want to present these fees on receipts.
One thing to keep in mind is that charging deposit fees separately on its own line item will make it easier to remit taxes. Including the fee in the product’s total price can make it harder to distinguish between taxable and non-taxable amounts, leading to errors in tax calculations. By listing the deposit fee separately, merchants can simplify their accounting and reporting process.
Province-Specific Regulations
Bottle deposit fees in Canada are determined by provincial legislation. Each province sets its own rates and rules regarding eligible containers and enforces the program.
Let’s examine these regulations province by province.
Alberta
Alberta’s beverage container recycling program is overseen by the Alberta Beverage Container Recycling Corporation (ABCRC). This is under the regulatory authority of the Government of Alberta.
Beverages Covered: All ready-to-serve beverages.
Containers Covered: All sealed containers purchased in Alberta.
Amount of Deposit:
- ≤1 litre: 10¢
- >1 litre: 25¢
ABCRC states that container deposit fees and the non-refundable Container Recycling Fee (CRF) can be included in the total price or added as a separate line item. Retailers can decide this independently.
British Columbia
The beverage container deposit program in British Columbia is managed by Encorp Pacific, under regulations established by the provincial Ministry of Environment and Climate Change Strategy.
Beverages Covered: All ready-to-drink beverages, except infant formula, meal replacements, and dietary supplements.
Containers Covered: All container types.
Amount of Deposit: 10¢
Encorp encourages retailers to charge the non-refundable Container Recycling Fee (CRF) as well as the container deposit as a separate line item. The CRF ranges from 0 to 20 ¢ depending on the type of container. More information can be found on their website.
Manitoba
Manitoba’s beer container recycling program is operated by the Manitoba Liquor and Lotteries Corporation and Brewers Distributor Limited, with other beverage containers managed through the municipal blue box program.
Beverages Covered: Beer only; all other beverage containers are collected through the blue recycling box program.
Containers Covered: All empty beer containers.
Amount of Deposit:
- Beer cans and bottles <2L: 10¢
- Beer cans and bottles ≥2L: 20¢
- Reusable metal kegs: $40.00
Manitoba does not currently have a separate container recycling fee on top of the deposit.
New Brunswick
The beverage container program in New Brunswick is regulated by Recycle NB under the oversight of the provincial Department of Environment and Local Government.
Beverages Covered: All beverages except milk, milk products, and unpasteurized cider.
Containers Covered: All beverage containers ≤5L.
Amount of Deposit:
- Non-alcoholic beverages: 10¢ / 5¢*
- Alcoholic beverages:
- ≤500mL: 10¢ CAD / 5¢*
- 500mL: 20¢ CAD / 10¢*
- Refillable beer containers: 10¢
*Customers receive only half of their deposit back when returning non-refillable containers.
In New Brunswick, there is also a Container Recycling Fee (CRF). Retailers are required to build this fee into the total advertised price. The CRF cannot be listed as a separate line item.
Newfoundland and Labrador
The Multi-Materials Stewardship Board (MMSB) oversees Newfoundland and Labrador’s beverage container recycling program, with guidance from the provincial Department of Environment and Climate Change.
Beverages Covered: All beverages except milk, milk alternatives, infant formula, meal replacement beverages, and concentrated beverages.
Containers Covered: All beverage containers ≤5L, excluding refillable containers.
Amount of Deposit:
- Non-alcoholic beverages: 8¢ / 5¢*
- Alcoholic beverages (excluding wine and spirits): 8¢ / 5¢*
- Wine and spirits in plastic, glass, or tetra-pak containers: 20¢ / 10¢*
- Wine and spirits in all other containers: 8¢ / 5¢*
*Consumers receive only a partial refund depending on the container type. The remainder of the deposit is used to fund recycling programs.
Nova Scotia
Nova Scotia’s beverage container program is overseen by Divert NS, which operates under the regulatory framework of the Resource Recovery Fund Board (RRFB).
Beverages Covered: All ready-to-serve beverages <5L, excluding milk, milk-based products, and other exemptions.
Containers Covered: Plastic, metal, bimetal, glass, gable top, and tetra pak containers.
Amount of Deposit:
- Non-alcoholic containers <5L: 10¢ / 5¢*
- Alcoholic beverages:
- Wine & spirits ≤500mL: 10¢ / 5¢*
- Wine & spirits >500mL: 20¢ CAD / 10¢*
- Beer: 1.20 per dozen bottles
*Consumers receive only a partial refund depending on the container type. The remainder of the deposit is used to fund recycling programs.
Ontario
Ontario’s container deposit program is managed by the Beer Store and the Alcohol and Gaming Commission of Ontario (AGCO) for alcoholic beverages. Non-alcoholic beverage containers are collected through municipal blue box programs.
Beverages Covered: All alcoholic beverages, including wines, beers, and spirits.
Containers Covered: Glass bottles, plastic bottles, tetra paks, bag-in-box, aluminum, and steel containers.
Amount of Deposit:
- Glass bottles, plastic bottles (PET), tetra pak containers, bag-in-box:
- ≤630mL: 10¢
- 630mL: 20¢
- Aluminum and steel containers:
- ≤1L: 10¢
- 1L: 20¢
In 2023, Ontario also introduced a non-refundable Container Recycling Fee (CRF) which ranges from 1 to 3¢ depending on the container type, which includes non-alcoholic containers.
Prince Edward Island
Prince Edward Island’s beverage container program is managed by the Department of Environment, Energy and Climate Action, under the Environmental Protection Act.
Beverages Covered: Juice, sports drinks, carbonated soft drinks, water, alcohol, and beer.
Containers Covered: Plastic, metal, bimetal, glass, gable top, tetra pak, bag-in-box, and pouches.
Amount of Deposit:
- Non-alcoholic beverages ≤5L: 10¢
- Wine & spirits ≤500mL: 10¢
- Wine & spirits 501mL–5L: 20¢
- Beer cans & bottles ≤500mL: 10¢
- Beer cans & bottles ≥501mL: 20¢
- Refillable domestic beer bottles (fully refundable): $1.20 per dozen bottles
*Consumers receive a 50% refund. The remainder of the deposit is used to fund recycling programs.
Quebec
Québec’s beverage container deposit system is regulated by Recyc-Québec, under the Ministry of the Environment and the Fight Against Climate Change.
Beverages Covered: Beer, carbonated soft drinks, wine, spirits, cider, fruit juices, tea, water, and milk.
Containers Covered: Aluminum, plastic, and glass containers between 100mL and 2L. Expanded coverage for multi-layer/material containers begins in November 2025.
Amount of Deposit:
- Soft drink containers & beer cans ≤450mL: 5¢
- Non-refillable beer >450mL: 20¢
- One-way glass containers ≤450mL: 10¢
- Non-glass containers: 10¢ CAD
- Glass containers <500mL: 10¢
- Glass containers ≥500mL: 25¢
Éco Entreprises Québec (ÉEQ) also requires distributors to contribute to recycling programs directly, however there is no separate Container Recycling Fee above and beyond the initial deposit.
Saskatchewan
Saskatchewan’s beverage container program is managed by SARCAN Recycling, under the regulatory authority of the Saskatchewan Ministry of Environment.
Beverages Covered: All ready-to-serve beverage containers, excluding certain exemptions.
Containers Covered: Glass, plastic, juice boxes, and gable top cartons.
Amount of Deposit:
- Containers <1L: 10¢
- Containers ≥1L: 25¢
- Glass containers:
- ≤300mL: 10¢
- 300mL–1L: 20¢
- ≥1L: 40¢
- Refillable beer bottles: 5¢
In Saskatchewan, there is also a non-refundable Environmental Handling Charge (EHC) applied to beverage containers in addition to the refundable deposit. The amount of the EHC depends on the type of container.
Northwest Territories
The Northwest Territories beverage container program is managed by the Department of Environment and Natural Resources.
Beverages Covered: All ready-to-serve drinks, including milk, soft drinks, energy drinks, water, wine, spirits, and non-refillable beer.
Containers Covered: Glass bottles, aluminum cans, plastic bottles, tetra packs, drink pouches, gable top containers, and bi-metal containers.
Amount of Deposit:
Containers ≤1L: 10¢
Containers >1L: 25¢
In the Northwest Territories, consumers are required to pay both a refundable deposit and a non-refundable handling fee on beverage containers. The handling fee, also known as a Container Recycling Fee (CRF), varies based on the size and type of the container.
Nunavut
Nunavut’s beverage container recycling is in the early stages, with limited regulations and oversight currently provided by local municipalities.
Containers Covered: Aluminum cans only.
Amount of Deposit:
Cans: 15¢ (10¢ refunded at depots).
Nunavut currently has no separate recycling fee system for beverage containers.
Yukon
Yukon’s beverage container program is overseen by the Department of Environment under the Beverage Container Regulation.
Beverages Covered: Milk, juice, carbonated soft drinks, water, coffee, tea, drinkable yogurt, and alcoholic beverages.
Containers Covered: Plastic, aluminum, glass, and other sealed containers.
Amount of Deposit:
- Containers ≥750mL: 35¢ / 25¢ refundable
- Containers 30mL–750mL: 10¢ / 5¢ refundable
- Milk and milk substitutes: 10¢ / 5¢ refundable
*Consumers receive only a partial refund depending on the container type. The remainder of the deposit is used to fund recycling programs.
Displaying Bottle Deposit Fees to Customers
In most of Canada (excluding New Brunswick), merchants and distributors have the freedom to either build in the fees to the total price or display them as a separate line item.
However most recycling organizations will encourage you to display these fees separately. For example in BC, Encorp, operating as Return-It, says that displaying both container deposits and recycling fees separately promotes transparency and consumer awareness about the cost of recycling.
Displaying both container deposits and recycling fees separately promotes transparency and consumer awareness about the cost of recycling
-Encorp, Return-It BC
When displaying fees, merchants should be transparent by clearly communicating the fee’s purpose and what the amount is.
By using an app to clearly display fees throughout the shopping process, customers will better understand their fee total leading to no surprises at checkout.
A few tips to make sure your fees are transparent:
- Include fees on product pages so customers see them before adding items to their cart.
- Clearly label fees as “Container Fee” or “Bottle Deposit” so customers understand the charge and its purpose.
- Provide an itemized breakdown of fees at checkout so that customers aren’t surprised by additional costs.
How to Add Bottle Deposit Fees to Your Shopify Store
Since the bottle return process is a complex network between distributors, merchants, and customers, store owners need the ability to charge fees that are clearly displayed on receipts so customers can easily understand the charges. The process of charging and refunding these fees must be well-coordinated, so merchants can manage the deposit refund process smoothly, remit fees and taxes, and avoid penalties.
The options to add Bottle Fees to your Shopify store natively aren’t great…
Shopify doesn’t have great ways to add fees to your store natively:
- You could build fees into calculated shipping rates, but this doesn’t adjust to the quantity of items purchased.
- You could build the fee into the product’s price so it’s an inclusive fee, but this is cumbersome and may leave some customers feeling misled.
- You could create fee variants or separate products for fees, and then instruct customers to select or add these manually, but customers can easily remove these from the cart to avoid paying for them.
Using an app is the best way to add Bottle Deposit Fees
The best way to add fees to your store is to use an app. Apps provide a quick-and-easy setup that usually requires no coding experience. If you get stuck with the setup or need assistance managing your fees, you also have support from the developers to assist with the setup and troubleshooting.
Product fee apps are designed in a way that clearly displays fees so customers can easily see what they’re for. The setup process will guide you through creating the Help Text or tool tips that customers will see so your fees are properly labelled.
Apps will also arm you with better reporting methods to easily track your bottle deposit fees over a given period. This is important for any information that will need to be reported to either the Canada Revenue Agency or distributors for handling fees.
We’ve compared some of the top fees apps for Shopify and found Magical Product Fees was the best app for charging Canadian Container Deposit fees on your Shopify store.
Handling Multi-Provincial Sales and Location-Based Fees
If you are a distributor and or a merchant selling beverages to customers across multiple provinces, it is recommended to seek legal counsel so you understand your obligations.
Each province in Canada has its own legislation governing bottle deposits and container recycling fees. These laws can vary significantly, not only in the types of beverages or containers they apply to but also in the specific amounts charged and how the fees should be reported or remitted.
You will need to consult with each province’s legislature to determine whether or not you should charge bottle fees. For example, some provinces may require you to charge a deposit fee at the point of sale, which is refundable when customers return the containers, while others might impose non-refundable recycling fees.
Conclusion
While merchants can choose whether to include container fees within product prices or display them as separate line items, listing fees separately is a better approach. Displaying fees separately comes with many benefits, such as promoting transparency, building customer trust, and easier methods to report your fees.
Shopify doesn’t have great ways to charge fees natively, so the best way to manage and automate these fees on your Shopify store is by using an app like Magical Product Fees. Using an app will ensure compliance, simplify the process of charging fees, and deliver a better shopping experience for your customers.
Further Reading
Canada Revenue Agency – Returnable Containers
Encorp Pacific (Return-It) – Beverage Products
Alberta Beverage Container Recycling Corporation (ABCRC) – Container Fees
SARCAN Recycling – Deposit Information (Saskatchewan)
Canadian Beverage Container Recycling Association (CBCRA) – 2024 CRF Update
The Beer Store – Deposit Return Program (Ontario)
Recyc-Québec – Beverage Container Consignment
Encorp Atlantic – Deposits and CRFs (New Brunswick)
Divert NS – Beverage Container Deposit-Refund Program (Nova Scotia)
Island Waste Management Corporation (IWMC) – Beverage Containers (PEI)
Multi-Materials Stewardship Board (MMSB) – Beverage Containers (Newfoundland and Labrador)
Government of Northwest Territories – Beverage Container Program
Government of Yukon – Beverage Container Recycling Information
Government of Nunavut – Waste Management
Magical Product Fees
The Magical Product Fees app is a fast and easy way to build, customize, and attach fees to products or entire orders.