Electronic Nicotine-Delivery Systems (ENDS) aka Vapes

“ENDS” means any combination of electronic nicotine-delivery system and/or e-liquid and/or any derivative thereof, and/or any e-liquid container, regardless of whether the liquid or substance contains nicotine.

A tax is imposed on any electronic nicotine-delivery system (ENDS) product at a rate of either (1) $0.50 per milliliter of the electronic liquid (e-liquid) contained within an ENDS product that is prefilled and not to be refilled, or (2) 10% of the wholesale cost of any other ENDS product. 

For more information on ENDS and what is and is not subject to the ENDS tax, see the Division’s ENDS Distributor FAQs and ENDS Dealer FAQs.

Every distributor with a Rhode Island License must collect, file, and pay the ENDS tax. For detailed information on distributors, see the Division’s ENDS Distributor FAQs. 

Yes, ENDS dealers are required to have a Cigarette Dealers license, and ENDS distributors, manufacturers, and importers are required to have a Rhode Island Distributor License. Details are available under the relevant headings below, as well as in the Distributor FAQs and Dealer FAQs.

Yes, all purchases of ENDS products must be made from a distributor with a Rhode Island license as of January 1, 2025. 

You may review the Rhode Island Licensed Distributor Listing on our website to ensure you are purchasing ENDS products from a distributor with a Rhode Island licensed. 

ENDS products purchased by a licensed dealer from anyone other than a distributor with a Rhode Island license are contraband.

No one – all ENDS products sold at retail are subject to sales and use tax. 

There is no exemption for the ENDS product tax.

Other taxes may apply depending on other aspects of the business and the specific circumstances of each transaction.

Any retailer having ENDS products in their possession must maintain records on the premises and ensure permanency and accessibility for inspection by the Division. The records should include sales invoices from a distributor with a Rhode Island license. 

Yes. The sale, or offer for sale of, or the possession with intent to sell or to offer for sale, flavored ENDS to individuals within the State of Rhode Island is prohibited. “Flavored electronic nicotine-delivery system product” means any electronic nicotine delivery system product that imparts a characterizing flavor.

Examples of characterizing flavors include, but are not limited to, any fruit, mint, chocolate, honey, or spice or which impart a cooling or numbing sensation. 

The taste or aroma of tobacco or menthol is not considered a characterizing flavor.

No. However, ENDS tax is imposed on bundled transactions that contain ENDS products along with other items sold for one price.   

For more information, please refer Question 1 of ENDS Dealer FAQs.

Under federal and state law, it is illegal for retailers to sell any tobacco product—including ENDS products and cigarettes—to anyone under age 21. The law applies to all retailers and stores, with no exceptions.

Yes, a Cigarette Dealer License is required to sell ENDS products. 

If you currently hold a Cigarette Dealer License, you do not need to apply for a new license to sell ENDS products.

If you do not hold a Cigarette Dealer License, you may apply here:  www.ri.gov/taxation/BAR/.

Yes, all purchases of ENDS products must be made from a distributor with a Rhode Island license as of January 1, 2025.

You may review the Rhode Island Licensed Distributor Listing on our website to ensure you are purchasing ENDS products from a distributor with a Rhode Island licensed. 

ENDS products purchased by a licensed dealer from anyone other than a distributor with a Rhode Island license are contraband.

Yes, ENDS products sales are subject to sales and use tax.

Sales Tax: filed monthly and is imposed on the total sales price, including any fees associated with the sale.

Other taxes may apply depending on other aspects of the business and the specific circumstances of each transaction.

Yes. All ENDS products sold at retail are subject to sales and use tax. 

Yes, all manufacturers, importers, and distributors selling ENDS products to Rhode Island dealers are required to have a Rhode Island license. They may only sell to Rhode Island dealers that have Rhode Island dealer licenses.

If you currently hold a distributor license from the Rhode Island Department of Health, you do not need to apply for a new license prior to January 1, 2025 as your license will remain active until that date. 

If you do not hold a distributor license, you may apply with the Rhode Island Department of Health prior to January 1, 2025.

As of January 1, 2025, all license applications will be handled by the Division of Taxation. The Division will provide further information regarding licensing in the near future.

Yes, all purchases of ENDS products must be made from a distributor with a Rhode Island license as of January 1, 2025.

ENDS products purchased by a licensed dealer from anyone other than a distributor with a Rhode Island license are contraband.

All ENDS distributors with a Rhode Island license making sales in Rhode Island on or after January 1, 2025 are required to pay tax on such sales or use by electronically filing a monthly return (Form OTP-1, Other Tobacco and Electronic Nicotine-Delivery Products Tax Return) and making electronic payments of the tax to the Rhode Island Division of Taxation. The first due date for ENDS distributors with a Rhode Island license, making sales in Rhode Island, to file a return and pay the tax is February 10, 2025. There is no grace period.

The filing and payment of ENDS tax must be made on or before the 10th day of each month for the previous calendar month when the sale was made.  For example, if the sale of the ENDS products is in January of 2025, then the filing and payment of the ENDS tax must be made on or before February 10, 2025.

Businesses may be subject to Rhode Island’s Electronic Filing Mandate. Larger business registrant taxpayers are required to use electronic means to file returns and remit taxes to the State of Rhode Island for tax periods beginning on January 1, 2023. 

For more information on Rhode Island’s Electronic Filing Mandate, visit the Division of Taxation’s dedicated Electronic Filing Mandate webpage: https://tax.ri.gov/resources/businesses/electronic-filing-mandate.

The tax is imposed on any ENDS product at a rate of either (1) $0.50 per milliliter of the electronic liquid contained within an ENDS product that is prefilled and not to be refilled, or (2) 10% of the wholesale cost of any other ENDS product. 

The licensed distributor is obligated and responsible for indicating the payment of the ENDS tax on the sales invoice to the licensed dealer.

Any retailer having ENDS products in their possession must maintain records on the premises and ensure permanency and accessibility for inspection by the Division of Taxation.