Tax Information - Vermont
Resellers in Vermont are required to pay all taxes upon receipt or sale
Vermont - https://tax.vermont.gov/business-and-corp/miscellaneous-taxes/e-cigarettes/faqs
Information is current as of: March 28, 2021
WHO PAYS THE TAX: The reseller (You) (Exceptions: Vermont taxes are NOT Charged to resellers by ECBlend unless a specific agreement with ECBlend is obtained.)
If, on or after July 1, 2019, a retailer acquires other tobacco products on which the licensed wholesale dealer has not paid the tax, then the retailer will become responsible for paying the tax. Retailers should know whether the Tobacco Products Tax has been paid, because licensed wholesale dealers are required to state on the invoice whether the price includes the tax. The amount of tax paid by either the wholesaler or the retailer must be added and collected as part of the retail sales price of the tobacco products sold to the consumer.
Wholesale dealers become liable for collecting and remitting tax in Vermont on any tobacco substitutes (e-cigarettes), liquids, and devices imported, manufactured, furnished, sold, shipped, or delivered by them to retailers on or after July 1, 2019. Wholesale dealers who hold both wholesale and retail dealer licenses, and sell directly to consumers, must calculate the tax on the wholesale price when they acquired the products at wholesale.
Is ECBlend licensed in Vermont:Yes, our Vermont Tobacco Wholesale License is 11015621
What forms must be filed and when are the due dates? The Tobacco Products Tax Form CTT-646, Wholesale Cigarette And Tobacco Dealer Report And Tax Return must be filed and paid monthly by every licensed wholesale dealer, even when no tax is due. The return and tax are due 15 days following the end of the month. To register, file your return, and pay taxes due, go to myVTax. If you have any questions, contact Vermont Tax Dept at (802) 828-2551 or firstname.lastname@example.org.
Does sales tax apply to sales of other tobacco products? Yes, sales tax applies to retail sales of other tobacco products such as e-cigarettes. Consumers will pay sales tax in addition to the Tobacco Products Tax, which is added to the final price. This is not a change to the current taxation of other tobacco products, which are already subject to sales tax at the point of retail sale.
LAWS, REGULATIONS AND GUIDANCE
32 V.S.A. Chapter 205 Cigarettes and Tobacco Products
- Tobacco. Certain tobacco products are taxable in Vermont when manufactured from, derived from, or contain tobacco, and when intended for human consumption. This excludes cigarettes, little cigars, roll-your-own tobacco, snuff, and new smokeless tobacco, which are subject to different taxes and rates.
- Tobacco Substitutes. Taxable tobacco substitutes are products that contain or are designed to deliver nicotine or other substances into the body through the inhalation of vapor and have not been approved by the U.S. Food and Drug Administration for tobacco cessation or other medical purposes. Tobacco substitutes include electronic cigarettes or other electronic or battery-powered devices.
- Liquids. Liquids are taxable whether they contain nicotine or other substances.
- Delivery devices. Delivery devices sold separately for use with a tobacco substitute are taxable.
Examples of newly taxable products are e-cigarettes, vaping liquid of any substance even if it does not contain nicotine, and vaping apparel such as hoodies. Repair parts, accessories, and charging devices that can only be used in vaping devices or are custom made for vaping devices are taxable. The content of vaping liquid is immaterial for the purposes of taxation. If a product is sold to be vaped, then it is taxable. Even CBD products are taxable if sold for vaping. Likewise, vaping devices sold for use with legal cannabis are taxable. Products manufactured from, derived from, or containing tobacco that are intended for human consumption continue to be taxable.
Examples of nontaxable products are generic items that could be used for other purposes, such as batteries, chargers, protection equipment, carrying cases, and cleaning products. Generally, if accessories or repair parts can be used in non-vaping products, then they are not taxable.