E-cigarette Liquids Excise Tax FAQ

Who is liable for the excise tax on e-cigarette liquids?

The wholesale dealer or the retail dealer who first acquires or otherwise handles e-cigarette liquids is liable for the tax. If you receive e-cigarette liquids from someone other than a registered Tobacco Wholesaler you may be responsible for the tax.

Who is a retail dealer?

A retail dealer is every person other than a wholesale dealer who sells or offers for sale e-cigarette liquids irrespective of quantity or the number of sales.

What is an e-cigarette liquid?

Any liquid or liquid mixture used in e-cigarettes that may also be known as e-juice, e-fluid, e-liquid, or e-liquid product.

Taxable liquid includes all such liquid that can be vaporized or otherwise converted into an inhalable product when used in an e-cigarette. This includes the liquid derived from a mixing kit or from mixing kit components when that liquid can be vaporized or otherwise converted into an inhalable product when used in an e-cigarette.

When a mixing kit contains every component part necessary to produce a liquid that can be vaporized when used in an e-cigarette, the entire volume of the mixing kit shall be subject to tax.

What is an e-cigarette?

An electrical or electronic device that provides a smoke, vapor, fog, mist, gas or aerosol suspension of a substance that, when used or inhaled, simulates the activity of smoking, including inhaling or exhaling product, and includes a device that is composed of a heating element, battery or electrical or electronic circuit, or a combination of heating element, battery and electrical or electronic circuit, which works in combination with e-liquid to produce an inhalable product.

An e-cigarette includes any so designed, or similarly designed, product that is manufactured, distributed, marketed or sold as an e-cigarette, e-cigar, e-pipe or under any other name or descriptor.

How much is the excise tax on e-cigarette liquids?

The excise tax on e-cigarette liquids is at the rate of seven and one-half cents ($.075) per milliliter of e-cigarette liquid.

When is the excise tax on e-cigarette liquids effective?

The excise tax on e-cigarette liquids is effective July 1, 2016.

Am I required to remit the tax on all of my floorstock of e-cigarette liquid on that date?

No. There is no floor stock tax on the possession of e-cigarette liquid on that date. Any liquid sold by a registered WV wholesale dealer or received by a retail dealer with tax not paid on or after to July 1, 2016 is subject to the tax.

Is the excise tax calculated on the liquid nicotine content in the e-cigarette liquid product or on the entire e-cigarette liquid itself?

The tax is calculated on the entire e-cigarette liquid.

Is an e-cigarette liquid that contains zero nicotine subject to the excise tax?

Yes. Any liquid or liquid mixture used in e-cigarettes whereby the liquid is vaporized or otherwise converted into an inhalable product is subject to the tax.

Do I need to receive a license from the Department before I sell e-cigarette liquids?

Yes. All retail dealers and wholesalers, including manufacturers who directly sell e-cigarette liquids, must receive a license, in the form of the business registration certificate, before selling e-cigarette liquids in this state.

If you have a current business registration certificate, but have not been licensed as a tobacco retailer, please contact the State Tax Department at (304)558-3333 or by mail at Revenue Division, P. O. Box 2666, Charleston, WV 25330-2666 to add the license.

As a retail dealer, will I need to provide the Department a bond to be licensed to sell e-cigarette liquids?

A surety bond will not be required at this time of retail dealers selling vapor products. The Department will periodically review the sufficiency of whether a bond is needed and may require a retail dealer to furnish a bond in an amount that adequately protects the State from loss if the dealer fails to pay taxes.

What form do I fill out to remit the tax on the e-cigarette liquids?

Registered wholesale dealers, including manufacturers that sell directly to retailers, are to complete Form TPT-709 West Virginia Tobacco Products Tax Report on a monthly basis. The return is due fifteen (15) days after the end of the month covered by the report.

Retail dealers purchasing e-cigarette liquids from someone other than an authorized tobacco wholesaler, or retail dealers that produce liquid that is not subject to tax are also required to complete a Form TPT-709 West Virginia Tobacco Products Tax Report on a monthly basis. The return is due fifteen (15) days after the end of the month covered by the report.

How do I obtain a tax form to report the tax on e-cigarette liquids? Can I file or pay the excise tax on e-cigarette liquids electronically?

The Department is currently working on an updated TPT-709 form to include e-cigarette liquids and it will be made available prior to August 1, 2016 (the first day a taxpayer is able to file the return for the period beginning July 1, 2016). The form will be available on the Department’s website as soon as possible on the Tobacco Products page.

As soon as the new form is available to print, a taxpayer may register and file their return through our online portal located at https://mytaxes.wvtax.gov/.

As noted above, the first return will be due on August 15, 2016.

I have multiple locations; can I file one consolidated return for all locations?

Yes, provided that you have registered each location under the same FEIN.

How do I round if I have a fraction of milliliters after I have totaled the amount of e-cigarette liquids are subject to the tax?

Rounding is to be performed AFTER calculating the grand total of all e-cigarette liquids. If you have a fraction of 0.5 milliliters or above of e-cigarette liquids, please round up to the nearest whole milliliter. If you have a fraction of less than .5 milliliters of e-cigarette liquids, please round down to the nearest whole milliliter.

Example #1: Selling 6 units at 0.4mL per unit would equal 2.4mL total or 2.0mL rounded down for tax purposes.

Example #2: Selling 9 units at 0.4mL per unit would equal 3.6mL total or 4.0mL rounded up for tax purposes.

I am a convenience store in West Virginia that buys all my e-cigarette liquids from a licensed wholesale dealer. Do I need to be licensed by the Department?

If you are buying tax-paid e-cigarette liquids, you are not required to file and pay the excise tax on e-cigarette liquids. However, all retail dealers and wholesalers must receive a license, in the form of the business registration certificate, before selling e-cigarette liquids in this state. If, at any time, you buy non-tax paid e-cigarette liquids, you will be liable for the excise tax and must be registered with the Department to pay that tax. If you wish to not be liable for the excise tax, make sure that you are buying tax-paid e-cigarette liquids. Asking the seller for a license or making sure the excise tax is applied to the invoice is an indication that the e-cigarette liquids you are buying are already tax paid

I currently manufacture e-cigarette liquid in West Virginia. Do I have to pay the tax on the liquid components before they are mixed to become a consumable product?

No. The excise tax applies once the component parts are mixed to be a consumable product as an e-cigarette liquid that is capable of being vaporized in an e-cigarette.

However, this is not the case for mixing kits which contain every component part necessary to produce a liquid that can be vaporized when used in an e-cigarette. In such an instance, the entire volume of the mixing kit shall be subject to tax.

If you are a consumer who mixes your own component parts that are mixed into a consumable product as an e-cigarette liquid that is capable of being vaporized in an e-cigarette, and no tax was imposed on those component parts, then you are required to file a TPT-702 Tobacco Products Excise and Use Tax report and pay any tax due in any month you produce and use e-cigarette liquid.

I currently manufacture e-cigarette liquid that is sold to West Virginia customers. Is there specific information that must be included on customer invoices?

Yes. All invoices for e-cigarette liquids sold to West Virginia customers must include the amount of e-cigarette liquid sold stated in milliliters.

Can a wholesale dealer or a retail dealer pay the tax based on sales or purchases of e-cigarette liquids?

Wholesale dealers are to pay the tax based on the quantity of product purchased for sale in West Virginia. Retail dealers who obtain non-tax-paid product or who manufacture the e-cigarette liquid are to pay the tax on the e-cigarette liquid purchased and/or produced for sale in West Virginia.

I need to return some e-cigarette liquid product back to the manufacturer. What do I need to do?

A wholesale dealer or retail dealer who is primarily liable for the e-cigarette liquids tax and is in possession of stale or otherwise unsalable e-cigarette liquids upon which the tax has been paid may return the products to the manufacturer and deduct the quantity so returned on their tax report. An affidavit from the manufacturer listing the vapor products returned to the manufacturer must accompany the return on which credit is claimed.

I am an internet retail dealer, how do I report the tax on the e-cigarette liquids?

Internet retailers selling tax not paid e-cigarette liquid in West Virginia are required to register as a retail dealer and report Internet sales and remit the appropriate amount due on TPT-709 - West Virginia Tobacco Products Tax Report.

What if I have other questions?

For tax information and assistance you can always reach us at (304) 558-3333 or (800) 982-8297. Your call will be taken in the order in which it was received.

You can also email us at TaxHelp@WV.Gov.