The Office of the Attorney General’s Tobacco Enforcement Section was created to enforce and administer the terms of what is known as the Tobacco Master Settlement Agreement ("MSA”) and Virginia statutes relating to Tobacco Product Manufacturers and cigarette product regulation. Please review the following information in answer to our most frequently asked questions.

Virginia laws impose restrictions and requirements relating to the possession, distribution and sales of cigarette and Roll-Your-Own (“RYO”) product upon individual buyers, those in possession of such product, retailers, distributors, stampers and importers. Virginia’s laws governing the commercial possession and trade of such product are enforced and regulated by the Virginia Alcoholic Beverage Control Authority (the Virginia ABC), the Virginia Department of Taxation, and the Virginia Office of the Attorney General.

The Virginia Tobacco Directory was established pursuant to Virginia Code § 3.2-4206. Cigarette and Roll-Your-Own (“RYO”) retailers, stampers, distributors and importers must review the Directory frequently to ensure that the tobacco products you stamp, sell, and/or import are published as currently legal for sale. Retailers, stampers, distributors and importers should also refer to Virginia Code §3.2-4207 and Virginia Code §3.2-4212 for information concerning the prohibition against the stamping, sale and/or import of tobacco products not listed in the Virginia Tobacco Directory.

Yes. Except where specifically provided by law, all sales, purchases, transportation, receipt or possession of unstamped cigarettes is prohibited under Virginia Code § 58.1-1017. Wholesale dealer stamping agents (as provided in Virginia Code § 58.1-1011) are generally exempt where the product is being distributed to an out-of-state purchaser, per Virginia Code § 58.1-1010.

Per the Virginia Department of Taxation, “Cigarette retailers and wholesale dealers must use the Cigarette Resale Certificate of Exemption (ST-10C) issued by Virginia Tax to buy cigarettes tax exempt for resale in Virginia.” (See URL https://www.tax.virginia.gov/cigarette-resale-exemption-certificates .) Virginia Code § 58.1-623.2 requires dealers to obtain and use the Cigarette Exemption Certificate to purchase stamped cigarettes tax-free for resale. Thus, if cigarettes and/or RYO are being commercially sold or purchased tax exempt, the purchaser must be in possession of an ST-10C and the seller must verify this before sale. See also Virginia Code § 58.1-1000 for a list of those requiring or exempt from requiring the ST-10C, and Virginia Code § 58.1-1017.1 for tax-paid cigarette/RYO purchase volume limits.

Multiple factors are considered in determining whether such cigarette / RYO product is subject to Virginia taxes and laws:

1. Are the actual sales at the counter made in Virginia? For example, does the store’s sales receipt provided to the purchaser indicate a Virginia Sale?

   Under Virginia Code § 23VAC10-120-220, sales of tangible personal property are considered to be in Virginia if such property is received in Virginia by the purchaser.

2. Does the store have sufficient contact with the Commonwealth for it to be required to obtain a dealer’s certificate of registration from the Virginia Department of Taxation?

   Under Virginia Code § 58.1-612(C), retailers are required to obtain a dealer’s certificate of registration from the Virginia Department of Taxation if it maintains a place of business in the Commonwealth, solicits business in the Commonwealth, advertises in the Commonwealth, is owned or controlled by the same interests which own or control a business located within the Commonwealth, or offers tangible personal property to consumers in the Commonwealth.

   See also the Virginia Tax Rulings of the Tax Commissioner, Document Number 20-43, “Guidelines for Remote Sellers and Marketplace Facilitators.”

3. Is the store actively selling to Virginia customers?

   Under Virginia Code § 58.1-612(A) & (B)(3), Virginia sales taxes apply to retailer sales of property for consumption in the Commonwealth.

4. Are the sales of unstamped cigarettes from another state prohibited when made at a Virginia register to Virginia customers?

   Yes. Under Virginia Code § 58.1-1017, the sale, purchase, receipt or possession of unstamped cigarettes is prohibited as being for the purpose of evading tax.

Investigators with the Office of the Attorney General’s Tobacco Enforcement Section are authorized to seize certain contraband cigarettes and RYO under Virginia Code § 2.2-509.1. These contraband products include:

1. Cigarettes/RYO that are stamped, offered for sale, or imported, and which do not appear on the Virginia Tobacco Directory.

2. Cigarettes/RYO that are possessed or distributed and that are counterfeit.

3. Cigarettes/RYO that have had their stamps altered or removed, or that have had counterfeit stamps affixed.

4. Unstamped cigarettes that are sold, purchased, transported, received or possessed.

Until the implementation of new statutes on October 1, 2026, Cigarette and RYO contraband that are seized by OAG Investigators pursuant to the authority above are subject to the forfeiture procedures provided under Virginia Code § 19.2-386.3. Such contraband is subject to forfeiture and destruction under Virginia Code § 19.2-386.11(C) and § 19.2-386.21. From October 1, the new statutory system will be subject to the forfeiture procedures provided in Virginia Code § 19.2-386.1.

Procedurally, the seized contraband is held by the Office of the Attorney General in its secured contraband lock-up facility. The Office of the Attorney General files a Notice of Seizure with the Circuit Court of the County or City in which the seizure occurred within 21 days of such seizure, with the owner of such contraband being delivered a copy. Within 90 days of such seizure, the Office of the Attorney General files an Information with Richmond City Circuit Court, with the owner of such contraband being served a copy.

After such filing, the Office of the Attorney General requests a hearing before Richmond City Circuit Court, for the purposes of seeking an Order of Destruction (of the contraband) from the Court.

No. In most cases, retailers, wholesalers and manufacturers whose inventory has been seized as contraband do not choose to attend the final forfeiture and destruction hearing in Richmond City Circuit Court. Parties to the seizure are of course welcome to attend, but attendance is not necessary unless parties intend to dispute the seizure before the Court. In most cases, such seizures are not disputed.

From October 1, 2026, retail tobacco permits are required for retailers selling “(i) any product containing, made of, or derived from tobacco or that contains nicotine that is intended for human consumption or is likely to be consumed, whether smoked, heated, chewed, dissolved, inhaled, absorbed, or ingested by other means, including a cigarette, heated tobacco product, chewing tobacco, snuff, or snus; (ii) any electronic smoking device and any substances that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine; and (iii) any component, part, or accessory of a product described in clause (i) or (ii), whether or not such component, part, or accessory contains tobacco or nicotine, including blunt or hemp wraps, and glass pipes. "Retail tobacco product" includes any liquid nicotine or nicotine vapor product.” (see Virginia Code § 4.1-100 and Virginia Code § 4.1-355.)

Note that "retail tobacco product" does not include any cigar or pipe tobacco.

No. Per Virginia Code § 4.1-355, “Any person who is not a retail tobacco permittee who sells any retail tobacco product except as permitted by this subtitle or, for manufacturers or distributors licensed by the Department of Taxation, purchases such products for resale pursuant to Title 58.1, is guilty of a Class 1 misdemeanor.”

Note also that the purchase from a seller without a Retail Tobacco Permit will also be illegal. Per Virginia Code § 4.1-358, “Any person who buys retail tobacco products from any person other than a retail tobacco permittee authorized under this subtitle is guilty of a Class 1 misdemeanor.”

Yes. Each separate retail location will be required to apply for a separate retail tobacco permit.

There is a one-time, non-refundable permit application fee:

1. For retailers with an existing ABC license, the fee is $300.

2. For all other retailers (without a license to sell alcohol) the fee is $400. (Please note that the cost of the initial 12-month permit is included in this fee.)

The application requires a Criminal Background Check (CBC) for all individuals with 10% or more ownership interest. Existing ABC license holders that have not had a CBC in last 24 months will be required to undergo a new CBC.

1. All owners will need to submit a copy of their valid DMV identification or passport;

2. All owners will need to submit a copy of their state DMV driving record;

3. Owners who are Virginia residents will need to pay a $15 fee for the Virginia State Police CBC;

4. Owners who are non-VA residents will need to obtain a CBC report from their state of residence.

No. Virginia ABC will accept paper applications; however, this will be a slower process. Please allow additional time for processing. Applying online is highly encouraged.

The new laws require that the retail tobacco permit applicant attest that their employees have received training regarding ID checking, placement of signage, prohibited acts, and penalties. Virginia ABC has launched VERT (Virginia Education for Retailers of Tobacco), which contains the required training elements. It is free of charge and can be taken online through Virginia ABC’s website .

Virginia ABC is currently accepting Retail Tobacco Permit applications. When you are ready to apply, click here. .