UK Vape Tax Explained: Everything You Need to Know
The UK Government has confirmed that by the 1st October 2026, a new tax on e-liquids will be enforced. The Vaping Products Duty, or VPD, is set to be the biggest upset to the vaping market in years, more impactful than even the disposable vape ban, which took effect from June 2025.
This new vape tax will affect everyone from manufacturers to customers and all points in between, so understanding how it will impact your vaping journey and your personal budget is vital.
In this blog, we will break down everything we know to date about the VPD, so you can be sure that you have the knowledge to prepare and react accordingly.
Read on as we explore what the vape duty is, why it is being introduced, how it will work in conjunction with VAT (Value Added Tax), the timeline of vape tax legislation, and most importantly - how it will impact you.
What Is The UK Vape Duty?
The Vaping Products Duty (VPD) is a new tax that will be applied to vape liquids in the UK from the 1st of October 2026. After this date it will be illegal for anyone to manufacture e-liquids without HMRC (His Majesty's Revenue & Customs) approval.
- The vape duty will apply to all substances intended for vaping, regardless of their nicotine content - even 0mg (nicotine-free) e-liquids will be affected.
- The Government has confirmed that the vape tax will be applied as a flat rate of 22 pence per ml of vape liquid in any given container size.
- The VPD will be applied to pre-filled vape pods as well as refill bottles, but not refillable vape pods, vape device batteries, or accessories.
The vape tax will be enforced and managed using the Vaping Duty Stamps Scheme (VDS). After the 1st of October 2026, these tamper-evident stamps will appear on the outermost packaging of vape liquids, and provide traceability for all legitimate products covered by the VPD/VDS.
Why Has The UK Introduced A Vape Tax?
The VPD is effectively an extension of the Tobacco and Vapes Bill, first proposed by Rishi Sunak's former Conservative Government, and now being carried forward by Kier Starmer's Labour Party.
It forms a part of a wider national plan to reduce public risks associated with vaping, in tandem with driving down smoking rates by making traditional tobacco products less accessible.
The key reasons for introducing the vape tax include:
- Discouraging non-smokers and young people (under 18s) from taking up vaping by making products less affordable/accessible (in conjunction with the disposable vape ban).
- To raise additional revenue to fund public services, including the NHS and Stop Smoking Services.
Despite the vape duty inevitably making vaping more expensive, the UK Gov will also be introducing even steeper taxation on cigarettes and traditional tobacco products.
This is to ensure that vaping still remains a more cost-effective option by comparison for adults who choose it as a method of tobacco harm reduction.
Vape Tax Vs VAT: Key Differences
As a flat rate applied to all vape liquid, regardless of product type/nicotine content, the vape duty's (VPDs) impact on product costs is fairly easy to understand/predict. Things become a little more complicated, however, when it is combined with VAT (Value Added Tax).
The VPD and VAT are two entirely separate taxation schemes, but will apply in tandem to vaping products from the 1st of October 2026.
In simple terms:
- The VPD is a unique duty which will apply exclusively to vape liquids according the their volume at a rate of 22p per ml. VAT is a standard duty applied to all goods and services in the UK, charged at 20% of the total cost of those goods/services.
VPD & VAT combined:
- The base price you pay for vaping products includes the standard 20% VAT. However, as the Vape Duty Stamps (VDS) being added to products as part of the VPD essentially function as a separate item that is purchased with each product, 20% of the stamp cost (vape duty) will also be applied as extra VAT.
- That means, under the new tax scheme from the 1st October 2026, you will be paying VAT on the duty, as well as the product itself.
Below, we will break down the key differences between VAT and the vape duty so you can understand at a glance, or click the button to learn more in our dedicated blog:
VPD (Vaping Products Duty)
- The VPD is a unique "vape tax" being added to all vape liquids from the 1st October 2026.
- The vape tax will apply as a flat rate of 22p per ml of e-liquid, regardless of type or nicotine content.
- The VPD will be enforced using the Vape Duty Stamp scheme (VDS). These stamps are purchased from HMRC and will be applied to the outermost packaging of any vape liquid as proof of compliance before it can be legally sold.
- As the vape duty stamps will essentially be classed as an additional item, they will incur their own VAT charges on top of the VAT factored into the pre-VPD base price of vape liquids.
VAT (Value Added Tax)
- VAT is a standard tax applied to all goods and services exchanged in the UK.
- VAT is charged at 20% of the total costs of the goods/services, in addition to their base price.
- Currently, standard VAT is included in the base price of vaping products sold in the UK.
- Any additional services or items added to a transaction (like the new duty stamps being added to vape liquids) will incur extra VAT charges.
- After the VPD is enforced, the total price you will pay for a vape liquid will include the base price and VAT, as well as the duty cost per ml, and additional VAT for the duty stamp.
How The Vape Duty Will Impact Different Product Types
The VPD means new taxes will be applied to any and all vape liquids, regardless of their product type, nicotine content or size.
That means everything from 2ml pre-filled pods, all the way up to large-volume shortfill e-liquids, will be affected. The additional cost scales per ml of e-liquid, rather than by product type.
As we mentioned in the previous section, it's not just the 22 pence per ml vape duty being added either. While all vaping products currently have the standard 20% VAT included in their sale price, an additional 20% of the duty must also be factored in as additional VAT.
Have a look at the examples below to get a better understanding of how much the extra Vape Duty and VAT will impact the prices of e-liquid refill bottles and pre-filled pods:
Vape Tax On Pre-Filled Pods
Pre-filled vape pods can contain a maximum of 2ml of e-liquid under UK TPD/TRPR regulations.
This means a maximum of 44 pence will be applied to each pod as part of the vape duty.
On top of that, a maximum of 9 pence VAT will be charged for the duty itself.
Meaning a maximum total of 53 pence of additional costs per pod will apply under the new vape tax scheme.
- Here is an example of how the vape duty would affect a pack of 2x 1.5 ml EDGE GO pre-filled pods:
Pre VPD cost: £4
Post VPD cost: £4.79
(Includes 66 pence vape duty and 13 pence additional VAT)
Vape Tax On 10ml E-Liquid Bottles
10ml e-liquid refills like those in our original £1 range will face substantial price increases under the new vape duty.
An additional £2.20 will be added to the base price of any 10ml e-liquid bottle as part of the vape tax.
The additional VAT charged for the duty also adds an extra 44 pence.
This means a total of £2.64 in taxes will be charged on top of the base cost of the e-liquid bottle when the VPD comes into effect.
- Here is an example of how the vape duty would affect a 10ml bottle from our £1 range of 50-50 freebase e-liquids:
Pre VPD cost: £1
Post VPD cost: £3.64
(Includes £2.20 vape duty and 44 pence additional VAT)
For our customers, this means enjoying premium quality vape juice for only £1 after the VPD is enforced will no longer be possible. We will, however, remain cheaper than competing brands which already charge far more for 10ml bottles, even if you choose our £2 nic salt range, LiQuid Bar Salts.
Vape Tax On 100ml Shortfill E-Liquids
Shortfill e-liquids, being the largest bottles on the market, will see the biggest price increases of any vaping product under the new tax scheme.
This means that what was once a more economical way for vapers to enjoy more of their favourite flavours, may soon become unaffordable for those on a tight budget.
For 100ml shortfills (the most common size), £22 will be added to the base price under the VPD.
The additional VAT charged for the duty will be £4.40.
That's a massive £26.40 in additional taxes charged per bottle sold.
- Here is an example of how the vape duty would affect a 100ml bottle from our Shortfill range:
Pre VPD cost: £10
Post VPD cost: £36.40
(Includes £22.00 vape duty and £4.40 additional VAT)
This staggering cost increase doesn't even factor in the post-tax price of nic shots, which many people add to shortfills to infuse them with their desired amount of nicotine.
Zero-Nicotine Rules Under The VPD
The Vaping Products Duty makes no exceptions for e-liquids without nicotine.
0mg vape juice will face the same tax charges as any other e-liquid, regardless of whether it's 18mg or even 20mg.
This is the reason shortfills, which legally must be sold as nicotine-free due to their large volume, will not escape vape duty charges after the 1st of October 2026.
This no-holes-barred approach to the flat 22p per ml tax rate may see many people who only vape for flavour stop altogether in the face of rising costs.
How Will The Vape Duty Affect Consumers?
The one thing we know for sure is that the vape tax will make e-liquids far less affordable for consumers and could have a catastrophic impact on those who vape on a tight budget.
Once the VPD is enforced:
Pre-filled pod vapers will have to consider if the convenience of this approach to vaping is worth the extra cost vs the value of refill bottles.
Everyday 10ml vapers will see prices increase significantly, and may have to scale back their consumption or risk exceeding their budget.
Shortfill vapers will be hit hardest, with prices expected to jump as high as £30+ for a 100ml bottle, without even factoring in the cost of nic shots. This product type may end up disappearing altogether as consumers are priced-out of the market.
Nicotine-free vapers may stop vaping altogether, as without the need to manage cravings, vaping could become too expensive to warrant continuing for flavour alone.
DIY Mixers will no longer be able to buy raw ingredients and make e-liquids at home without HMRC approval. This will likely spell the end for home-brew vapers who are highly unlikely to want to apply and pay for vape duty stamps for the sake of a hobby. Mixing e-liquid at home without approval has been confirmed to incur fines and even criminal charges.
Product/brand variety is also expected to decrease as the staggering cost of conforming to the new duty may price-out smaller companies and see their products disappear from shelves, reducing the variety available to consumers. Retailers may even reduce their offerings in the face of rising costs to stock vape liquids.
Timeline Of UK Vape Tax Legislation
March 2024
March 2024
Former Chancellor Jeremy Hunt announced the vape tax as part of the Conservatives' Spring Budget.
It was to form a part of the still-ongoing Tobacco & Vapes Bill, designed to reduce vaping risks and drive down smoking rates.
The original proposition was a tiered duty system based on nicotine content.
A 12-week public consultation on the proposed tax followed the announcement and received largely positive feedback.
July 2024
July 2024
Following a snap general election, Kier Starmer's Labour Party confirmed they would continue with the proposed Tobacco & Vapes Bill in the Conservatives' stead, including the vape tax.
October 2024
October 2024
Current Chancellor Rachel Reeves announced more details regarding the vape tax as part of the Autumn budget.
This is when we were informed of the 22p per ml duty to be applied to all vape liquids regardless of their nicotine content - a distinct change from the previously proposed tiered system.
An enforcement date of the 1st of October 2026 was set for the new duty.
1st April 2026
1st April 2026
From this date, vape liquid manufacturers must apply to HMRC for approval for the Vaping Products Duty (VPD) and the Vaping Duty Stamps scheme (VDS).
It has been advised that HMRC may take up to 45 working days to complete their checks.
These checks include various compliance requirements to be met, including proof of funds needed to pay the duty as required upon enforcement.
Once approved after this date, manufacturers will be able to buy vaping duty stamps from specialist HMRC-approved suppliers.
Consumers may begin seeing the first duty-stamped vape liquids, from the earliest brands to be approved, appear on shelves in the weeks and months following this date.
1st October 2026
1st October 2026
From this date, the duty becomes enforceable, with stamps required and duty to be paid for all vape liquids being sold.
Each individual product must carry a duty stamp on its outermost retail packaging, unless subject to "duty suspension".
This is when consumers will see prices increase significantly, and the phase-out of non-compliant products will accelerate as the "sell through period" begins.
1st April 2027
1st April 2027
From this date, all non-compliant products will be removed from shelves, enforced by HMRC and Trading Standards.
All vaping products outside of "duty suspension" must have a vaping duty stamp attached.
This marks the end of the "sell-through" period. From this point on, no exceptions will be made for anyone producing or selling e-liquids without proof that the correct duty has been paid.
Summing Up
The news of the vape tax has left UK vapers with plenty of questions and concerns about the future of their vaping journeys.
We hope that this article has brought you up to speed with everything you need to know currently about the vape duty and how it will affect you.
We know the idea of vaping getting more expensive will be worrying for many of our customers, and we assure you that, despite unavoidable increases, we aim to remain one of the most competitively priced vape stores in the UK, without ever compromising on quality and safety.
We will be publishing plenty of other helpful content over the next few weeks to ensure you are up to speed as we enter 2026 and the enforcement date for the tax creeps ever closer.
