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What is the vapor products tax?
Wisconsin law imposes an excise tax of 5 cents per milliliter of liquid or other substance on vapor products sold, offered or exposed for sale, possessed with intent to sell or removal for consumption or other disposition for any purpose by any person engaged as a distributor of them in Wisconsin (sec. 139.76(1m), Wis. Stats). The tax is due at the time the vapor products are received in Wisconsin for sale or distribution.
"Vapor product" means a noncombustible product that produces vapor or aerosol for inhalation from the application of a heating element to a liquid or other substance that is depleted as the product is used, regardless of whether the liquid or substance contains nicotine (sec. 139.75(14), Wis. Stats.).
The tax applies to liquids or other substances that are sold with a vapor product as one packaged item. The tax does not apply to equipment and devices that are not sold with a liquid or other substance. The tax also does not apply to liquids that are not packaged and sold with equipment that is in whole or in part a vapor product.
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Who is subject to the vapor products tax?
- Person(s) engaged as a distributor (secs. 139.75(4) and 139.76(1m), Wis. Stats.).
"Distributor" means any of the following:
- Any person engaged in the business of selling vapor products in Wisconsin who brings, or causes to be brought, into Wisconsin from outside Wisconsin any vapor products for sale;
- Any person who makes, manufactures, or fabricates vapor products in Wisconsin for sale in Wisconsin; or
- Any person engaged in the business of selling vapor products outside Wisconsin who ships or transports vapor products to retailers in Wisconsin to be sold by those retailers.
Note: A distributor includes a retailer that makes sales of untaxed vapor products in Wisconsin which are brought into Wisconsin from another state. If you are a Wisconsin retailer, review the
Wisconsin Tobacco/Vapor Products Permit Listing on our website to see if you are purchasing vapor products from businesses that hold a Wisconsin tobacco and vapor products distributor's permit.
- Consumers. A use tax is imposed on the use or storage of untaxed vapor products in Wisconsin (sec. 139.78(1m), Wis. Stats.).
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Do I need a permit to sell vapor products?
You must obtain a tobacco and vapor products distributor permit from the Wisconsin Department of Revenue if you are:
- A manufacturer, distributor, or subjobber selling vapor products to Wisconsin customers (Sec. 139.79, Wis. Stats.)
- A Wisconsin retailer purchasing untaxed vapor products (Sec. 139.78(1m), Wis. Stats.)
Distributors of vapor products must apply for a permit by completing Form
CTV-200,
Application for Cigarette, Tobacco, and Vapor Products Permits, found on the
Cigarette, Tobacco and Vapor Products Forms page.
Retailers that bring untaxed vapor products into Wisconsin for sale to consumers must obtain a distributor permit (sec. 139.79(1), Wis. Stats.).
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How do I report the vapor products tax?
The vapor products tax is reported on Form TT-100,
Wisconsin Distributor's Tobacco and Vapor Products Tax Return, and supporting schedules. The sample tax forms and instructions can be found on the
Cigarette, Tobacco and Vapor Products Forms page.
Tax returns are required to be filed electronically using one of the following methods:
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My Tax Account, the department's self-service business tax filing system.
- Transmitting an approved XML data file to the department. See the
XML page on the department's website for more information.
Sign up for the Cigarette, Tobacco and Vapor Products Excise Tax E-file
electronic mailing list to receive up-to-date information about the changes.
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I purchased untaxed vapor products (received and/or consumed in Wisconsin). Do I owe excise tax?
Yes, you owe use tax on vapor products that you use or store in Wisconsin at the rate of 5 cents per milliliter of the liquid or other substance that is depleted as the product is used, regardless of whether the liquid or substance contains nicotine. The use tax does not apply on the vapor products if the excise tax has been paid by the manufacturer, distributor, or retailer or if an exemption applies (e.g., vapor products sold by post exchanges of the U.S. armed forces).
The vapor products use tax is reported on Form TT-104S,
Wisconsin Combined Tobacco and Vapor Products Use Taxes Return, found on the
Cigarette, Tobacco and Vapor Products Forms page.
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Do we need to let DOR know that we will be switching to XML filing?
Yes, you should give the department six weeks' notice of your intent to switch to XML filing. An FTP directory must be created and test files must be submitted prior to filing a return.
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Can I get an extension of time to file vapor products returns?
There are no extensions for distributors to file tobacco and vapor products tax returns.
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How long can I save and edit my return in My Tax Account before filing the return?
You can create, save, and edit a return in My Tax Account for up to two years. This means that you do not have to enter an entire month's worth of transactions at once. You can enter transactions for the period on a daily or weekly basis. You can also save your progress and edit previous entries.
If you are having a problem with a saved return, you can call (608) 266-6701 for help resolving your issue.
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Is there a spreadsheet available to enter data throughout the month as transactions occur that I can later upload directly into My Tax Account when I am ready to file my return?
Microsoft Excel spreadsheets are available below to assist with filing your returns in
My Tax Account. Download and save the appropriate spreadsheet from My Tax Account to your computer and enter your transaction data. When you are ready to file your return, you can upload the transaction detail from the spreadsheet directly into My Tax Account. Data for other areas of the tax returns (other schedules) must be entered directly into My Tax Account. See the User Guideline below for additional information about using the Excel spreadsheet.
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Schedule TT-101,
Uniform Tobacco and Vapor Products Transaction Schedule
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User Guideline for Excel Import Template
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Is there a maximum number of rows that can be entered or uploaded on a tax return when filing in My Tax Account (MTA)?
Yes, the MTA filing method cannot be used for returns with more than 32,000 transaction rows. If your return has more than 32,000 transaction rows, you must file via XML. For more information regarding the schema necessary to program an XML file, visit the
Excise Tax e-File Cigarette, Tobacco, and Vapor Products Program page.
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Is there a way to autofill the manufacturer's address and FEIN?
Not at this time, however, My Tax Account allows the user to duplicate lines of reported data and make necessary changes to the duplicated data, which may reduce the amount of keying required. Utilizing the downloadable Excel spreadsheet can also assist in this process. Data can be copied and pasted into the Excel spreadsheet and then uploaded into My Tax Account.
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What is the format for entering dates on the schedules?
The date can be entered in any format and My Tax Account will change it to the correct format.
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Do I have to report both the SSN and the FEIN for transactions?
No, only one of the two must be reported.
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How do I print a copy of my return and schedules in My Tax Account?
You will not be able to print a copy of a return filed via My Tax Account, but you can view the return. If needed, you may print screen shots to have a physical copy for your files.
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On the TT-101,
Uniform Tobacco and Vapor Products Transaction Schedule, do I need to list every flavor and product variation separately?
Vapor products of the same brand but of different flavors cannot be listed on one line. Every flavor or product variation must be listed separately.
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I hold a tobacco and vapor products distributor permit selling vapor products at wholesale to retailers and I am also a vapor products retailer selling vapor products to the ultimate consumer at a vape shop. Am I required to report retail sales to the ultimate consumer on the schedule of disbursements attached to the TT-100,
Wisconsin Distributor's Tobacco and Vapor Products Tax Return? Specifically, am I required to report all my sales as transaction code 2C (vapor products disbursed to an end user) on TT-101,
Uniform Tobacco and Vapor Products Transaction Schedule?
If you hold a tobacco and vapor products distributor permit and sell vapor products at retail to the ultimate consumer of the products, you are not required to report your sales of vapor products disbursed to an end user (transaction code 2C) on TT-101.
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Where can I learn about vapor products taxation and regulation?
Publication 304,
Cigarette, Tobacco, and Vapor Products Tax and Regulatory Information, contains detailed information about the vapor products tax, vapor products permits, retail licenses, and more.