If you’re running a vape shop in 2025, “compliance” isn’t a suggestion—it’s survival.
State and federal regulations on vape retailers are growing more complex, with several states enacting new tax codes, enforcement mandates, and compliance reporting requirements. And while many vape business owners are passionate about their product and community, staying compliant with every shifting rule can feel like walking a legal tightrope.
At Lifelong Merchant Services, we work with hundreds of vape retailers across the U.S.—and we’ve seen firsthand how the right POS system can help keep you compliant, avoid fines, and stay open. Here’s what you need to know for 2025 and beyond.
States Increasing Enforcement in 2025
While regulations vary, these states have shown increased enforcement actions (including surprise audits and license suspensions) since the beginning of 2024:
California: Crackdowns on improper tax filing, flavored e-liquid sales, and unverified age verification processes.
New York: Retailers must report detailed inventory logs and transaction-level data on all nicotine-containing products.
Illinois & Massachusetts: Expect more enforcement of milliliter-based excise taxes—and stiffer penalties for late reporting.
New Jersey & Washington: These states now require integration with approved POS systems that log and report excise data automatically.
If you operate in these areas (or plan to expand), a POS system that supports state-by-state compliance settings is essential.
What to Look for in a POS to Stay Compliant
Here’s what your system should do automatically:
Milliliter-Based Tax Setup
Some states charge a per-ml excise tax on e-liquids. You shouldn’t have to manually calculate these fees. Look for a POS that supports per-unit tax structures built into the catalog.Age Verification at Checkout
Manual ID checks are risky. Your POS should require age verification before payment is processed—with support for barcode scanning or integrated cameras.SKU-Level Inventory Logs
Many states now request detailed reports by SKU (including manufacturer, flavor, and size). Your POS should auto-log every sale with item-level metadata.Automated Tax Reporting
Simplify your audits. The best vape POS systems generate exportable tax reports for monthly, quarterly, or annual filing—saving you hours (and accountant fees).
The Hidden Compliance Risks Most Shops Overlook
Even well-meaning shop owners fall short due to:
Using generic POS systems that don’t support vape-specific tax rules.
Forgetting to update pricing after tax code changes.
Not locking down employee permissions—leading to inventory changes without proper controls.
A generic retail POS may seem cheaper upfront—but the cost of one failed audit or license suspension can be far higher.
The Lifelong Approach to Vape Compliance
We’ve built our POS system with high-risk industries in mind—especially vape. Every unit comes with:
Built-in age verification
Custom milliliter tax configuration
Real-time inventory and tax reporting
Extended support hours for late-night businesses
High-risk approved merchant accounts
If you’ve ever worried about compliance, chargebacks, or state audits, we’ve got your back.
Want to see a compliant POS in action?
👉 Book a free demo today
