Vape Shop Regulations Guide 2025: Legal Must-Knows

Thinking about opening a vape shop in 2025? Be warned—regulations are just as strict as those for traditional tobacco retailers. No cutting corners here! The government watches vape shops closely. Why? Because vaping products can contain nicotine and other regulated substances.

So, before you stock your shelves with flavored pods and display cases with shiny devices, there are some important legal boxes to tick. Let's break down everything you need to launch your vape business legally, from vape shop regulations to age restrictions and point-of-sale (POS) essentials. 

Regulations Are Strict—But Compliance Is Manageable with the Right Tools

Your vape shop will sell the following items, which makes following vape shop regulations especially important:

• Nicotine-containing e-liquids
• Nicotine-free e-liquids
• Disposable vape pens
• Refillable vape devices
• Vape mods and tanks
• Replacement coils and cartridges
• Batteries and chargers
• CBD vape products (in some states)
• Delta-8 or hemp-derived THC products (where legal)
• Accessories (e.g., drip tips, cases)
• Recyclable or hazardous waste (e.g., used batteries)

Vape retailers face tighter scrutiny due to health regulations, age restrictions, and complex state-by-state rules.

It might feel like a lot now. But running your shop legally protects your business, builds customer trust, and keeps surprise inspections stress-free. Furthermore, retail POS systems today are built for this. With features like automated age checks and tax tracking, staying compliant is easier.

How to Start a Vape Shop in 2025 Legally

Let’s walk through how to open a vape shop with all legal requirements together.

Step 1: Get a General Business License

A general business license registers your store with local authorities and gives you the legal thumbs-up to operate in your city, county, or state. It also confirms that your location allows retail activity. It also ensures your business stays on the regulatory radar—making updates and renewals easier to manage.

Every jurisdiction has its own process. But generally, here’s what you’ll need to apply for this license:

1. Fill out an application form. You’ll need to provide your EIN (Employer Identification Number), ownership details, business name, address, and what your store plans to sell.
2. Make sure your store location is in an area where vape retail is allowed.
3. Pay the license fee. This can vary widely. In rural counties, it might be nominal. In large metro areas, it could be a few hundred dollars or more.
4. Plan for annual renewal with updated paperwork and fees.

Step 2: Apply for a Seller’s Permit

The seller’s permit allows you to collect sales tax on products you sell. If your state requires sales tax, and most do, this permit is a must. It legally designates your shop as a retailer. You’re also responsible for collecting and remitting local and state sales taxes. It protects you from costly audits and compliance penalties down the line.

Here’s how to apply:

1. File a resale certificate or application with your state’s tax department.
2. Include your federal EIN and business details.
3. Pay any applicable fees, usually small, but required.
4. Stay on top of sales tax calculations for each taxable transaction.

Note: There are five states with no sales tax: Delaware, Montana, New Hampshire, Oregon, and Alaska. But if you're elsewhere, you’re likely on the hook for between 2.9% and 7.25% in taxes, depending on your state and city.

Step 3: Get a Retail Tobacco License

Many vape products don’t contain actual tobacco. Still, most states classify them as tobacco products for regulatory purposes. That means you’ll need a tobacco retailer license. It’s often tied to rules that protect minors and promote safe retail practices. Also, local governments may impose extra restrictions. For example, New York City bans vape shops within 500 feet of a school.

Here’s how to apply for it:

1. Submit an application that includes your business name, location, and details about your products.
2. Ensure all staff are over 21 and trained in proper ID verification procedures.
3. Pay the licensing fee. It varies by location. For example, maximum license fees go from $6 in New Hampshire to $800 in Connecticut.
4. Display your license in a visible spot inside your store.

Step 4: Don’t Forget Other Required Permits

In addition to the three big licenses above, your city or county may require other permits to ensure public safety and environmental compliance. Here's a checklist to keep on your radar:

Step 5: Know the Age Restrictions

You can’t sell vape products to just anyone. What’s the law? Well, as of December 2019, federal law mandates that you must be at least 21 years old to purchase tobacco and vape products in the U.S. This rule is non-negotiable and is strictly enforced.

So, here’s what you need to do:

• Verify ID on every customer who looks under 30.
• Train your staff to spot fake IDs and know vape shop regulations.
• Display signage stating that you only sell to customers 21+.

Warning: Selling to minors, even accidentally, can lead to heavy fines, license suspension, or store closure.

How to Choose a POS System That Helps You Stay Legally Compliant

When running a vape shop, you’ve to stay compliant with all regulations. A vape-friendly POS helps you pull that off. Let’s break down how.

Built-In Age Verification

This one’s non-negotiable. Most states prohibit the sale of vape products to anyone under 21. The penalties for violating this are serious: fines, license suspension, or permanent closure.

Make your POS your front-line defense against accidental sales to minors. So, look for a system that:

• Prompts for ID automatically during checkout
• Scans and validates government-issued IDs
• Stores age verification logs in case of inspections

Automated Sales Tax Calculation

Sales tax mistakes can result in penalties or unwanted attention from the revenue department. Since rates vary across counties and states, your POS should be able to:

• Pinpoint your store’s location and apply local tax rates
• Adjust tax collection based on the product type
• Track and report all taxes collected for accurate filings

Regulatory Product Categorization

Different vape products are often taxed or restricted differently. A good POS should allow you to:

• Categorize products, like e-liquids, mods, batteries, and accessories
• Apply rules or warnings based on category
• Easily filter or flag regulated items for compliance purposes

Inventory Tracking with Compliance Awareness

Proper inventory control supports environmental compliance and reduces liability. Inventory mismanagement can put your shop at risk. Your POS should include:

• Low-stock alerts, so you never run out of regulated items
• Tracking for electronic waste, like batteries and disposables
• Return tracking for damaged/defective products under warranty

Employee Access Controls

Compliance isn’t just what you do. It’s also what your staff does. Look for a system that allows you to:

• Set role-based permission levels for different employees
• Restrict who can override prices or process refunds
• Track individual staff activity for accountability

This keeps your team honest and your operations safe from internal mistakes or misuse.

Reporting Tools for Audits & Inspections

When inspectors or tax officials show up, you’ll want clean records. A great POS should give you:

• Time-stamped sales logs
• Age verification reports
• Tax summaries and product movement POS reports
• Daily closeout summaries

Bonus: Real-Time Alerts and Custom Rules

Advanced POS systems let you set custom compliance alerts—such as preventing bulk purchases of nicotine products or flagging invalid IDs. It’s an extra safety net to prevent accidental rule-breaking.

Make OneHubPOS Your Compliance Partner

To start a vape shop in 2025, secure a general business license to operate legally in your area and a seller’s permit to collect and remit sales tax. You also need a retail tobacco license since vape products are regulated like tobacco. Don’t forget other permits like health, fire, and signage. Age restrictions are strict. Only sell to customers 21 and older, verified by trained staff.

Finally, choose the vape-friendly OneHubPOS system with built-in age verification, automated tax calculation, inventory tracking, and reporting to simplify compliance and keep your shop running smoothly. 

Book your OneHubPOS demo now and see how our vape compliance features make running your store smoother, safer, and 100% regulation-ready.