In October 2024, Chancellor Rachel Reeves confirmed what many had feared since Jeremy Hunt's Spring Budget earlier that year: the UK is getting its first excise tax on e-liquids. The Vaping Products Duty lands on 1 October 2026.
The policy has been a roller coaster. Hunt's original proposal was a tiered system based on nicotine strength. Labour scrapped that for a flat rate: £2.20 per 10ml, regardless of whether your liquid contains 20mg of nicotine or none at all.
I've been vaping since 2016, back when the TPD limits first came in. Since then, we've had the disposable boom, the June 2025 ban, and now this. The industry keeps shifting, and vapers keep adapting.
This guide breaks down exactly what's changing: when the duty starts, how much you'll pay, what the duty stamps mean, and how the UK compares to Europe. Whether you're on prefilled pods or mixing 100ml shortfills, here's what you need to know.
Key Takeaways
- £2.20 per 10ml duty on all e-liquids (plus 20% VAT on the duty = £2.64 real increase)
- Starts 1 October 2026 with a six-month grace period for unstamped stock
- Everything is taxed including 0mg, nic salts, shortfills, prefilled pods
- Hardware stays untaxed (devices, coils, tanks, batteries)
- 100ml shortfills hit hardest with a 203% price increase
- Duty stamps required on all packaging from April 2027
- Stock up window is now through September 2026
Quick Links:
- Key Takeaways
- What Is the Vaping Products Duty?
- Key Dates
- Why the Tax Was Introduced
- How Much More Will You Pay?
- What's Taxed and What Isn't
- What Are Vaping Duty Stamps?
- How the UK Compares to Europe
- The Illegal Vape Problem
- Industry Response
- How to Prepare
- FAQs
- Sources
What Is the Vaping Products Duty?
The Vaping Products Duty (VPD) is the UK's first excise tax on e-liquids. It works like alcohol or tobacco duty: a fixed charge applied at the point of manufacture or import, then passed on to consumers.
The rate is £2.20 per 10ml [1]. Add 20% VAT on that duty and the real increase is £2.64 per 10ml.
Every type of e-liquid is in scope: nic salts, freebase, shortfills, nic shots, prefilled pods, and yes, 0mg nicotine-free liquids [1]. The tax is based on volume, not nicotine content.
Hardware stays untaxed. Devices, coils, tanks, empty pods, batteries, and chargers remain subject only to standard 20% VAT [1].
The government's stated aims are twofold: curb youth vaping and raise revenue. HMRC projects £135 million in year one, rising to £565 million annually by 2030-31 [1]. To maintain the financial incentive to switch from smoking, tobacco duty increases by £2.20 per 100 cigarettes on the same date [3].
What this means for you:
If you want to stock up at current prices, your window is now through late September 2026. E-liquid has a shelf life of around two years, so buying ahead makes sense if you have favourites you know you'll use.
During the grace period (October 2026 to April 2027), expect retailers to run clearance deals on unstamped stock. Worth watching for.
Why the Tax Was Introduced
The duty forms part of the government's Plan for Change to create a smokefree generation and curb youth vaping. According to HMRC, the measure is "being introduced to reduce the number of people taking up vaping, particularly non-smokers and young people, by reducing affordability" [1].
HMRC estimates around 5.1 million individuals who vape will be affected by higher prices, with heavier users facing the largest burden [1].
How Much More Will You Pay?
The duty is £2.20 per 10ml, plus 20% VAT on that duty. Here's what that looks like in practice:
Prices shown are RRPs from top-tier brands. Actual prices vary with multi-buy deals, bulk offers, clearance pricing, and mid/lower-tier brands.
The pattern is clear: smaller volumes take a smaller hit. Prefilled pod users see a modest bump. Shortfill buyers get hammered.
That 100ml bottle going from £13 to nearly £40 isn't a typo. It's a 203% increase. The maths is simple but brutal: £22 duty + £4.40 VAT on duty = £26.40 added to the pre-tax price.
If you're currently using big puff vapes, the increase is more moderate at around 26%, making them a reasonable middle ground between pods and shortfills.
What's Taxed and What Isn't
The distinction matters. If a product is "intended to be vapourised by a vape," it's in scope. Raw VG and PG from pharmacies remain untaxed because they're classified as food-grade ingredients.
What Are Vaping Duty Stamps?
From 1 October 2026, all e-liquid packaging must carry a Vaping Duty Stamp (VDS). These are small, tamper-evident labels that prove duty has been paid [2].
Specifications [2]:
- Size: 15-18mm x 42-44mm
- Must seal the packaging so it can't be opened without damaging the stamp
- Will include a digital element (likely a QR code) for supply chain tracking
Why stamps?
The stamp scheme serves two purposes: proving compliance and tracking supply chains. From 1 April 2027, any product without a stamp is illegal to sell. HMRC can seize unstamped stock and issue penalties [2].
For consumers, the stamp becomes a quick visual check. No stamp after April 2027 = don't buy it.
How the UK Compares to Europe
The UK isn't alone in taxing e-liquid. Several EU member states already levy excise duties on vaping products. Here's how the UK rate compares.
Exchange rate: €1 = £0.87
Ireland has the highest rate in Europe at €5.00 per 10ml [7]. Finland increased their rate by 33% in January 2026 to €4.00 per 10ml [9]. Germany's rate rose to €0.32/ml from January 2026 [8]. The UK sits below all three.
Many other EU countries also tax e-liquids, but rates vary significantly. Some countries like Austria, Malta, and the Netherlands currently have no specific e-liquid excise duty. In July 2025, the European Commission proposed minimum EU-wide rates as part of a revised Tobacco Taxation Directive [10].
The Illegal Vape Problem
Here's where things get complicated. The UK already has a massive illegal vape market. According to National Trading Standards, enforcement officers seized 1.19 million illegal vapes in 2023-24, and 24% of test purchases resulted in illegal sales to minors [4].
The tax creates a new incentive for black market products. A 100ml shortfill with no duty stamp could undercut legitimate retailers by £26.40. That's a significant margin for anyone willing to break the law.
HMRC has allocated £140 million for implementation [1], but critics argue it won't be enough. The UK Vaping Industry Association (UKVIA) has called for £50 million in dedicated enforcement funding and a licensing scheme with fines of £10,000 per underage sale (rising to £100,000 for repeat offenders) [5].
Whether enforcement keeps pace with the illicit market remains to be seen. The duty stamp scheme should help, but only if trading standards have the resources to check compliance.
Industry Response
The vaping industry hasn't taken this quietly. John Dunne, Director General of the UKVIA, described the duty as "a kick in the teeth" for the estimated 3 million former smokers who quit using vapes [5].
The UKVIA's main concerns [5]:
- The 203% increase on shortfills – disproportionately hits the most cost-effective products, potentially pushing some vapers back to cigarettes
- Enforcement gaps – without proper licensing and funding, the duty creates opportunity for black market growth
- 0mg inclusion – taxing nicotine-free liquids at the same rate as 20mg undermines harm reduction logic
Public health organisations are more divided. Action on Smoking and Health (ASH) notes that youth vaping has stabilised at around 7% of 11-17 year olds [6], suggesting other measures (like the disposable ban) may already be working. Whether price increases on top will reduce uptake further or just drive some vapers underground is the open question.
How to Prepare
Stock up strategically (not frantically)
You have until late September 2026 to buy at current prices. E-liquid has a shelf life of around two years, so buying ahead works if you stick to favourites you know you'll use.
Don't panic-buy random flavours you've never tried. And don't forget: during the grace period (October 2026 – April 2027), retailers will be clearing unstamped stock. Watch for deals.
Consider your setup
If you're on 100ml shortfills, the tax hits hardest. Options to reduce your liquid consumption:
- Switch to Mouth-to-Lung (MTL) vaping – uses significantly less liquid than sub-ohm
- Try nic salts – more efficient nicotine delivery means less liquid needed
- Refillable pod kits – typically use 2-4ml per day versus 10-20ml for sub-ohm tanks
Keep perspective
Even after the tax, vaping remains cheaper than smoking. A 20-a-day smoker spends over £5,000 per year at current prices. A heavy vaper using 10ml per day at new prices? Roughly £2,400. Still painful, but less than half the cost of cigarettes.
FAQs
Does the tax apply to 0mg / nicotine-free liquids?
Yes. The duty is based on volume, not nicotine content. All e-liquids intended for vaping are taxed at £2.20 per 10ml regardless of nicotine strength.
Will vape hardware be taxed?
No. Devices, coils, tanks, batteries, chargers, and empty pods remain subject only to standard 20% VAT.
What about DIY mixing?
Mixing duty-paid products (like shortfill + nic shot) for personal use is legal. Raw VG and PG from pharmacies aren't classified as vaping products, so they're currently untaxed. Manufacturing e-liquid for sale requires HMRC approval.
Can I stockpile before October 2026?
Yes. Buy at current prices before the duty kicks in. Just remember e-liquid has a shelf life of around two years, so don't go overboard on flavours you might not finish.
How do I know if a product is compliant after April 2027?
Look for the Vaping Duty Stamp on the packaging. No stamp = not compliant = don't buy it.
What's the penalty for selling unstamped products?
Civil penalties, criminal prosecution in serious cases, product seizure, and potential bans from operating as a vape retailer.
Will prices definitely increase by the full £2.64 per 10ml?
The duty and VAT on duty are fixed. Retailers may absorb some margin on cheaper products or multi-buy deals, but the baseline increase is unavoidable.
Sources
[1] HMRC – Introduction of Vaping Products Duty from 1 October 2026
[2] HMRC – Vaping Products Duty Stamps
[3] Gov.uk – Tobacco Products Duty rates
[4] National Trading Standards – Millions of Illicit Vapes Seized
[5] UK Vaping Industry Association (UKVIA) – Statement on Vaping Products Duty
[6] Action on Smoking and Health (ASH) – Use of Vapes Among Young People in Great Britain 2025
[7] Irish Revenue – E-liquid Products Tax
[8] German Customs (Zoll) – Tobacco Tax Rates
[9] Finnish Tax Administration – Excise Duty on Tobacco
[10] European Commission – Revision of the Tobacco Taxation Directive (July 2025)
