The 2026 Vape Tax: Everything You Need to Know
Overview: What is the Vaping Products Duty?
From 1 October 2026, the UK government is introducing the Vaping Products Duty (VPD). This is the first time e-liquid has ever carried its own excise charge in the UK, functioning similarly to the duty found on alcohol and tobacco.
While previous proposals suggested taxing products based on nicotine strength, the government has moved forward with a flat-rate tax based on volume. This means the nicotine content makes no difference to the tax amount—every 10ml of liquid is taxed equally.
The Real-World Cost Increase
The duty is set at £2.20 per 10ml of liquid. Because VAT (20%) is applied on top of this duty, the total price increase for consumers is £2.64 per 10ml.
Product Type | Typical Price Now | Duty + VAT Increase | Estimated New Price |
10ml Nic Salt / Freebase | £3.49 | + £2.64 | ~£6.13 |
2ml Prefilled Pod | Varies | + ~£0.53 | Price + 53p per pod |
10ml Nic Shot | £0.99 | + £2.64 | ~£3.63 |
50ml Shortfill | £9.99 | + £13.20 | ~£23.19 |
100ml Shortfill | £14.99 | + £26.40 | ~£41.39 |
Note: These figures assume the full duty is passed on to the consumer. Actual retail prices may vary.
Does the Tax Apply to 0mg Liquid?
Yes. This has caught many by surprise. Because the tax is based on volume rather than nicotine, 0mg shortfills, CBD vape liquids, and all nicotine-free e-liquids are taxed at the same £2.20 per 10ml rate as high-strength nicotine salts.
Important Dates & The "Duty Stamp"
In addition to the price change, all e-liquid will soon require a physical duty stamp on the packaging, similar to the stamps seen on spirits.
Date | Milestone |
1 April 2026 | HMRC registration opens for manufacturers/importers. |
1 October 2026 | VPD takes effect. All new stock must have duty stamps. |
Until 31 March 2027 | Grace period to sell through existing unstamped stock. |
1 April 2027 | Strict Deadline. All e-liquid on shelves must carry a duty stamp. |
What Stays Untaxed?
The new duty applies only to liquid. Your hardware costs are not affected by the VPD.
Untaxed: Vape kits, coils, empty pods/tanks, and batteries.
Taxed: Bottled e-liquids, prefilled pods, and nicotine shots.
Existing Regulations (TRPR)
The Vape Tax will sit alongside existing Tobacco and Related Products Regulations (TRPR), which remain in place:
20mg/ml maximum nicotine strength.
10ml maximum bottle size for nicotine-containing liquid.
2ml maximum tank and pod capacity.
Child-resistant caps and health warnings are still mandatory.
What This Means for You
Shortfill users are impacted most by this change, as the tax is charged on every 10ml in the bottle. We recommend staying informed as brands develop new formats, such as concentrated "longfills," to help offset these costs.
While this tax represents a significant shift, vaping remains a significantly cheaper and less harmful alternative to smoking. We are committed to keeping our prices as competitive as possible as these new regulations take hold.