A new excise duty on vaping liquids – the Vaping Products Duty (VPD) – comes into force in the UK on 1 October 2026. [1][2] This guide explains what it is, which products it covers, how the amount is calculated, and what it could mean for the prices consumers see in shops.
Contents
- What is the UK vape tax?
- When will the vape tax start?
- Why is the government introducing a vape tax?
- Which vape products will be affected?
- How much will the vape tax be?
- Could vape prices increase after October 2026?
- What does the vape tax mean for consumers?
- FAQs
H2: What is the UK vape tax?
The ‘vape tax’ in the UK is known as the Vaping Products Duty (VPD). It's an excise duty – the same category of tax that already applies to alcohol and tobacco – administered by HM Revenue & Customs (HMRC). [1][3]
VPD is paid by the businesses that manufacture or import vaping liquid into the UK. [3][4] Because duty is a cost of doing business, it's generally expected to be reflected in the prices retailers charge customers.
H2: When will the vape tax start?
The duty takes effect from 1 October 2026. [1][2] Businesses that manufacture, import, or store vaping products in duty suspension can apply to HMRC for approval from 1 April 2026, ahead of the October start date. [1][5]
There's also a transitional arrangement for existing stock. Vaping products manufactured or imported before 1 October 2026 aren't classed as excise goods and won't attract VPD. [6] Retailers can continue selling unstamped stock that predates the duty for a limited period, but all products must carry a valid duty stamp by the end of HMRC's sell-through arrangements. [5][1]
H2: Why is the government introducing a vape tax?
The government confirmed VPD at the Autumn Budget 2024. [2][7] It sits alongside the wider Tobacco and Vapes Act, which HMRC has linked to the government's broader ‘Plan for Change’ on tobacco and vaping regulation. [5]
At the same time as introducing VPD, the government raised tobacco duty by an equivalent one-off amount. [7] HMRC has said this is intended to maintain the existing price gap between vaping products and tobacco, rather than closing it. [5][7] As with alcohol and tobacco, excise duties of this kind are also a source of revenue for the Exchequer.
H2: Which vape products will be affected?
VPD applies to vaping liquid (e-liquid), not the products it's used in. [4] HMRC's guidance defines this broadly to include liquid in bottles, cartridges and pods, and any substance intended to be vaporised in a vaping device, such as propylene glycol, vegetable glycerine and flavourings. [4]
H3: E-liquids
Bottled e-liquids, including shortfills and nicotine shots, fall within scope. Duty is calculated on the total volume of liquid in the bottle. [8]
H3: Prefilled pods
Pods that come prefilled with vaping liquid are also covered. Because duty is based on volume rather than pack format, a small, prefilled pod carries proportionally less duty than a larger refill bottle. [8]
H3: Closed-system products
Closed-pod vapes that contain liquid – where the pod isn't designed to be refilled by the user – are treated in the same way as any other product containing vaping liquid: the duty applies to the liquid inside. [4][8]
H3: Nicotine-free vape liquids
Nicotine-free (0mg) liquids are included. HMRC's guidance states that the duty applies whether or not the vaping liquid contains nicotine. [4][8]
Vaping hardware itself, such as devices, batteries, coils, empty refillable pods and accessories, is not subject to VPD. [4] These items remain subject only to standard VAT.
H2: How much will the vape tax be?
VPD is a flat-rate duty based on the volume of liquid, not on nicotine strength or product type.
H3: How the tax is calculated
The VPD rate is £2.20 per 10ml, equivalent to 22 pence per millilitre. [8] HMRC gives the following worked examples:
-
A 2ml prefilled pod: 2 × 22p = 44p in duty
- A 10ml refill bottle: 10 × 22p = £2.20 in duty
- A 50ml shortfill bottle: 50 × 22p = £11.00 in duty
-
A 100ml shortfill bottle: 100 × 22p = £22.00 in duty
Because the rate is applied per millilitre rather than per pack, products with more liquid attract proportionally more duty than smaller formats, regardless of strength.
H3: How VAT affects the final price
Standard UK VAT, currently 20%, continues to apply to vaping products and is calculated on top of the price a retailer sets, which reflects the duty paid further up the supply chain. [3]
VAT itself hasn't changed – it applies to vaping products in the same way it already does today.
H2: Could vape prices increase after October 2026?
Because VPD adds a fixed cost per millilitre of liquid to the supply chain, it's reasonable to expect this to be reflected in shelf prices from October 2026 onwards. However, HMRC hasn't published retail price forecasts, and the exact amount any individual product's price rises by can't be stated with certainty in advance. [3]
H3: Why different products may be affected differently
Because the duty is charged per millilitre, products containing more liquid attract a larger duty amount in cash terms than smaller-volume products, even though the rate is identical across all of them. [8]
H3: Why prices may vary between retailers
VPD sets a duty liability for the business that manufactures or imports the liquid – it doesn't set the price on the shelf. Retail pricing, including how much of any additional cost is passed on to shoppers and when, remains a commercial decision for individual retailers. [3]
H2: What does the vape tax mean for consumers?
The vape tax has several practical implications for consumers.
H3: Understanding changes to product pricing
Consumers may notice that prices for e-liquids, prefilled pods and closed-system products reflect the new duty, alongside VAT as before. Vaping hardware itself sits outside the scope of VPD, so duty-related change is expected to be concentrated on liquid-containing products. [3]
H3: Understanding new packaging and duty stamps
Alongside VPD, HMRC is introducing a Vaping Duty Stamps (VDS) scheme. From 1 October 2026, vaping products manufactured or imported into the UK must carry a physical duty stamp affixed to the retail packaging, like the stamps already used on some tobacco products. [5][1] The stamp is intended to help HMRC, retailers and consumers identify that duty has been accounted for on a given product.
Products made or imported before 1 October 2026 can continue to be sold without a stamp during a transitional period, so consumers may see both stamped and unstamped packaging on shelves for a time after the duty begins. [1][6]
H2: FAQs
H3: Does the tax apply to all vape products?
It applies to vaping liquid – e-liquids, prefilled pods and closed-system products containing liquid. It does not apply to devices, batteries, coils or empty refillable pods.
H3: Are nicotine-free products included?
The duty applies regardless of nicotine content, including 0mg liquids.
H3: Is the tax based on nicotine strength?
VPD is a flat rate based purely on the volume of liquid – 22p per ml – regardless of strength.
H3: Will everybody pay the same price?
The duty rate is the same for everyone, but individual retailers set final retail prices, so shelf prices can vary from shop to shop.
H3: Can the duty rate change in the future?
Excise duty rates, including VPD, are set by the government and can be reviewed or changed in the same way that tobacco and alcohol duty rates are periodically revisited.
H3: When does the tax on vapes start?
The Vaping Products Duty comes into effect on 1 October 2026.
References
1. GOV.UK. ‘Introduction of Vaping Products Duty from 1 October 2026.’ Available at: https://www.gov.uk/government/publications/introduction-of-vaping-products-duty-from-1-october-2026
2. Deloitte TaxScape. ‘Vaping products duty – Autumn Budget 2024 measure summary.’ Available at: https://taxscape.deloitte.com/measures-autumn-budget-2024/vaping-products-duty.aspx
3. GOV.UK. ‘Vaping Products Duty and Vaping Duty Stamps guidance’ Available at: https://www.gov.uk/hmrc-internal-manuals/vaping-products-duty-and-vaping-duty-stamps-guidance
4. GOV.UK. ‘Handling wholesale or retail vaping products in the UK.’ Available at: https://www.gov.uk/guidance/handling-wholesale-or-retail-vaping-products-in-the-uk
5. HM Revenue & Customs, press communication via Mynewsdesk. ‘Vaping businesses urged to prepare for Vaping Products Duty registration from April 2026.’ Available at: https://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/vaping-businesses-urged-to-prepare-for-vaping-products-duty-registration-from-april-2026-3431812
6. GOV.UK. ‘VPDS073000 – Goods manufactured prior to 01/10/2026.’ Available at: https://www.gov.uk/hmrc-internal-manuals/vaping-products-duty-and-vaping-duty-stamps-guidance/vpds073000
7. Deloitte TaxScape. ‘Vaping products duty – Spring Budget 2024 measure summary.’ Available at: https://taxscape.deloitte.com/measures-spring-budget-2024/vaping-products-duty.aspx
8. GOV.UK. ‘How to pay Vaping Products Duty.’ Available at: https://www.gov.uk/guidance/how-to-pay-vaping-products-duty
