Effective March 27, 2021, the Preventing Online Sales of E-Cigarettes to Children Act extends the Jenkins Act and Prevent All Cigarette Trafficking (PACT) Act. This covers all electronic nicotine delivery system (ENDS) products, including related components, liquids, parts, and accessories that do not contain nicotine. Learn more.
A vapor product is any noncombustible product containing a solution or other consumable substance, regardless of whether it contains nicotine. It employs a mechanical heating element, battery, or electronic circuit that can be used to produce vapor from the solution or other substance, regardless of the shape or size.
Vapor products include electronic cigarettes, electronic cigars, electronic cigarillos, electronic pipes, or similar products or devices. Vapor products also include any cartridge or other container of liquid nicotine, solution, or other consumable substance, regardless of whether it contains nicotine. Vapor products are intended to be used with or in a device that can be used to deliver aerosolized or vaporized nicotine to a person inhaling from the device and is sold for such purpose.
Vapor products do not include:
There are two vapor products tax rates, and the rate that applies to your inventory depends on the volume of solution and type of the container.
Vapor products tax rates:
You may claim a credit on your combined excise tax return for Washington’s vapor products tax previously paid if you remove the product from your inventory in Washington by:
If you purchase vapor products online from a seller who has not paid the Washington vapor products tax, or purchase them outside Washington and bring them back to Washington, then you owe the vapor products tax. You must submit a Vapor Consumer Use Tax Return and pay the tax directly to the Department of Revenue.
You owe the vapor products tax if you:
You must report your purchases of untaxed vapor products you possess in Washington on your excise tax returns. You must also report your sales of vapor products on the excise tax returns under the retailing business and occupation tax, and collect and submit sales tax on your sales of vapor products.
You owe the vapor products tax if you do either of the following:
You must report your purchases of untaxed vapor products you possess in Washington on your excise tax returns. You must also report your sales of vapor products on the excise tax returns under either the wholesaling or retailing business and occupation tax, depending on the nature of the sale. For sales reported under the retailing tax classification, you must also collect and submit retail sales tax.
You owe the vapor products tax on all vapor products you manufacture or possess in Washington. This tax is reported on your excise tax returns. You must also report your production activity (manufacturing) and selling activity (wholesaling and/or retailing) on your excise tax returns. See our Manufacturing guide for more information.
In regards to consignment sales, the party with first possession of the vapor products in Washington is responsible for paying the tax. For reporting existing vapor floor stock inventory, it is the party with first possession on the date the law went into effect, Oct. 1, 2019.
Choose one of the following methods:
Effective March 27, 2021, the Preventing Online Sales of E-Cigarettes to Children Act extends the Jenkins Act and Prevent All Cigarette Trafficking (PACT) Act to cover all electronic nicotine delivery system (ENDS) products, including related components, liquids, parts, and accessories that do not contain nicotine.
Under the Preventing Online Sales of E-Cigarettes to Children Act, sellers must:
An ENDS is any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user by inhaling from the device.
An ENDS does not include a product that is approved by the Food and Drug Administration for sale as a tobacco cessation product or any other therapeutic purpose.
You must report ENDS sales on the Schedule C4 (ENDS) form.
The following sales need to be reported:
Schedule C4 (ENDS) is due no later than the 15th day of each month for the previous month’s shipments.
You must file a report with the box checked indicating no sales activity.
You must keep all sales invoices and shipping records for five years. Invoices need to include the following information:
Yes, if you are a business shipping or selling ENDS products through interstate commerce in Washington, or disseminating advertisements or offers, you need to complete the PACT Act Registration form generated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and email it to the DOR Cigarettes mailbox.
If you owe vapor products tax or other Washington state taxes, you need to register with the Department of Revenue by completing a Business License Application.