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Who is liable for the excise tax on e-cigarette liquids?
The wholesale dealer or the distributor, dealer, subjobber, subjobber dealer, retailer, or any other person who is the first person to receive tax-not-paid e-cigarette liquid products in West Virginia. If you receive e-cigarette liquids from someone other than a West Virginia registered Tobacco Wholesaler located outside of West Virginia, you may be responsible for the tax. Please note that whenever e-cigarette liquid is found in the place of any retail dealer available for sale without evidence of the tax being paid, it shall be presumed that the e-cigarette liquid is kept on the premise in violation of WV Code §11-17-4b and shall be considered contraband and subject to confiscation in addition to applicable criminal penalties found in WV Code §11-17.
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. These products may also be known as vape juice, vape liquid, vape cartridges, e-juice, e-fluid, e-cigarette liquid, e-cigarette liquid cartridges, or e-cigarette liquid product. It may or may not include propylene-glycol (PG), vegetable glycerin (VG), nicotine from any source, or flavorings. Absence of an ingredient does not change taxability. This includes e-cigarette liquid mixing kits and e-cigarette liquid mixing kit components. This also includes but is not limited to products containing cannabidiol (CBD), products labeled as Delta-8, Delta-9 and Delta-10, for use in an e-cigarette device.
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 replicates, mimics, or reproduces an experience similar to inhaling, or otherwise drawing into the mouth or nose or exhaling the smoke or combustion product of burning tobacco or any other product or material that can be used in a similar fashion. This includes, but is not limited to, devices composed of a heating element, battery or electrical or electronic circuit, or a combination of these items that works in combination with e-cigarette liquid to produce an inhalable product. This includes, but is not limited to, products marketed or sold as an e-cigarette, e-cigar, e-pipe, or under any other name or descriptor meeting the definition of e-cigarette, such as vape.
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 ($0.075) per milliliter of e-cigarette liquid or fraction thereof. For example, a product that is 1.2 milliliters would be taxed as 2 milliliters with tax due being a total fifteen cents ($0.15).
When is the excise tax on e-cigarette liquids effective?
The excise tax on e-cigarette liquids became effective July 1, 2016.
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 excise 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 excise tax.
Do I need to receive a license from the Tax Division 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 a business registration certificate, before selling e-cigarette liquids in this state regardless of whether the product is tax-paid or non-tax paid. If the product is non-tax paid when received, you will also have to register to remit the e-cigarette liquid tax. If you have a current business registration certificate, but have not been licensed as a tobacco retailer, please contact the West Virginia Tax Division at (304) 558-3333 or by mail at P.O. Box 2666, Charleston, WV 25330-2666 to add the license. You will be required to pay the $30 reissuance fee for the license. If you are selling CBD products, you will also need to acquire a retail hemp license from the Department of Agriculture.
As a retail dealer, will I need to provide the Tax Division 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 Tax Division 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, must complete Form TPT-709 West Virginia Tobacco Products Tax Report and corresponding Schedule ECL 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 has not been subjected to the tax are also required to complete Form TPT-709 West Virginia Tobacco Products Tax Report and corresponding Schedule ECL 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?
Form TPT-709 West Virginia Tobacco Products Tax Report is available on our website or taxpayers may register and file their return through our online portal located at https://mytaxes.wvtax.gov/.
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 as well as notifying the WV Tax Division of your request to consolidate to ensure duplicate account types are not set up.
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 Tax Division?
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 a business registration certificate that states “This business is licensed to sell cigarettes and/or tobacco products, 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 Tax Division 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 from licensed wholesalers who have properly paid the excise tax. 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 the excise tax.
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 be on serially numbered invoices and include the name and address of the seller and the purchaser, the point of delivery, the date, the number of e-cigarette cartridges, apparatus, containers, or other devices, the quantity in milliliters of each cartridge, apparatus, container or other device, the wholesale price of each e-cigarette cartridge, apparatus, container or other device delivered in this state, or if sold outside of a cartridge or other device, or if sold outside of a cartridge or other device or container, the total quantity in milliliters of e-cigarette liquid not in cartridges, apparatus or other device or container delivered in this state and the wholesale price of the e-cigarette liquid. The invoice must also either set out the amount of tax imposed separately on the invoice or must indicate that the tax imposed is included in the total price.
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 excise 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 excise 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 excise 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. An internet retail dealer must register with the WV Tax Division and obtain a Business Registration Certificate.
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 e-mail us at TaxHelp@WV.Gov or send a notice through your MyTaxes account.