Vape Tax in the UK: A Complete Guide for Vapers

By now, you might have already heard about the vape taxation buzz set to take effect in October 2026. This new tax is known as VPD (Vaping Product Duty) and it aims to control the rise of vaping in the UK. That said, new regulations will shape the availability of devices, particularly with the upcoming ban on disposable vapes. This guide covers the specifics of the vape tax in the UK and its expected impact on prices.

By Toby Jones

Published on June 13, 2025

What’s ahead?

What’s ahead? See how the VPD will affect the price of your favourite vaping device and e-liquids. Will you be paying for juices only? Or, for kits as well? Read on to find out.

Experts’ Corner

Action on Smoking and Health (ASH): It’s a renowned public health community that works to reduce tobacco-related harm in the UK.

Technavio: It’s a global advisory organisation that covers 100 sectors and around 800 niches.

The Times: This is a popular daily national newspaper in London.

Why Implement Vape Taxes?

Vaping has become a widely adopted alternative to smoking in the UK. People are using vape kits as an alternative to quit smoking. As of 2024, approximately 5.6 million adults in Great Britain vape regularly. This accounts for around 11% of the adult population (ASH). Among these, 53% are former smokers, 39% are current smokers, and 8% have never smoked tobacco, highlighting vaping’s role both in smoking cessation and as a new habit for some.

Despite its popularity among adults, youth vaping remains a concern. In 2024, 18% of 11-17-year-olds reported trying vaping, with 7.2% currently vaping, a figure that surpasses the 5.1% current smoking rate among youths (ASH, 2024).

With these rising concerns, the UK government is taking regulatory action to address both health and environmental issues, including a planned ban on disposable vapes by June 2025 and the introduction of a new nicotine vape tax in October 2026 (The Times, 2024).

Inside the Parliament

Unlike tobacco, vaping products are currently not subject to tax in the UK. This means e-liquids and devices are sold without the heavy taxes imposed on cigarettes.

However, Chancellor Rachel Reeves mentioned the importance of tax implementation on vapes in the Autumn Budget 2024. This is the first time a specific tax (or, in other terms, excise duty) will be applied to vaping products in the country.

What is Excise Duty?

Excise duty is a type of tax imposed by the government on specific goods, usually those considered addictive or luxury items. It is typically charged on the manufacture or sale of products like tobacco, alcohol, fuel, and, increasingly, vaping products.

What is Normal Tax?

Normal tax (sometimes called income tax, sales tax, or VAT (Value Added Tax)) is the general tax applied broadly to income, goods, and services. For example:

Income tax is a tax on personal earnings.
Sales tax or VAT is a tax on most goods and services bought and sold.

These taxes are usually not targeted at specific behaviours but raise revenue for general government spending.

Will Vaping Have Both Excise Duty and VAT?

From the above discussion, we can say:

The UK government is introducing an excise duty on vaping products.
On top of this, vaping products will also have VAT, which is a normal tax applied to most products.

So, vaping products will be taxed twice: once with the excise duty (sin tax) and once with VAT (normal tax) (source: GOV.UK).

Key Facts About the Vaping Products Duty (VPD)

The tax rate has been set at a flat £2.20 per 10ml of e-liquid, no matter the nicotine strength or flavour.

This tax aims to simplify enforcement but will inevitably raise costs for everyone who relies on vaping to stay away from smoking. The government says the duty is intended to discourage non-smokers and young people from starting to vape and raise funds for public health programmes.

To make sure the tax is properly collected, manufacturers and importers must register with HM Revenue & Customs (HMRC) and put duty stamps on all e-liquid bottles starting October 2026.

There is a grace period until 1 April 2027 that allows existing stock made before the tax begins to be sold without these stamps. This offers some relief for businesses and customers during the transition.

What Does the VPD Mean for Prices?

Before this tax, e-liquids were only subject to VAT. The new tax will push prices up significantly. As the table shows, the increase is particularly steep for shortfill bottles, which are popular among DIY mixers and budget-conscious vapers. For small bottles, the tax nearly doubles the price, making vaping more expensive overall.

Product Type	Price Before Vape Tax	Vape Tax Added	Estimated Price After Vape Tax
10ml E-liquid	£3.00	£2.20	£5.20
100ml Shortfill E-liquid	£15.00	£22.00	£37.00
Vape Kits	£25.00	£0.00	£25.00

Here is a clear graphical depiction of how the prices of different vaping accessories will change from the original prices, through the addition of excise duty: Looking at the graph, you can see an example of 10ml e-liquid that starts at a price of £3.00 before excise duty, but with a tax of £2.20 added, the price jumps up to about £5.20. Similarly, the 100ml Shortfill E-liquid is affected even more. If it starts at £15, the tax will add a hefty £22, pushing the final estimated price to £37.

On the other hand, the vape kits are not subject to excise duty, so their price remains steady at £25 before and after excise duty.

Tax on Different Vaping Products

Vaping device taxes are going to be high. The chart below highlights an expected percentage increase for several product types. "100ml shortfill" and "50ml shortfill" show the highest percentage increases at +176% and +132% respectively, meaning the added excise duty and VAT more than double their original price. Similarly, "10ml Nic Shot" and "10ml E-liquid" also face a +132% and +106% increase. In addition, products like "Big Puff 12ml" experience more moderate, but still significant, increases of +32%.

What About Vape Devices?

Tax does not apply to vaping devices and accessories, including mods, pods, coils, and batteries (but devices should be legal and TPD-compliant). While disposable devices have been banned from June 2025, the remaining devices on the market will continue to be VAT-taxed. This means device prices should stay roughly the same.

Vape Tax and European Countries

Vape taxes are popping up all over Europe, but how much you pay depends on where you are:

Germany: vaping is getting pricey. By 2026, expect to pay £0.32 more per ml, nicotine or not. That’s over £3 in tax for a 10ml bottle, before VAT. The aim? Make vaping less tempting, especially for teens.
France: rolled out a tax of £0.15 per ml in 2025. Add 20% VAT; a £4 bottle now costs around £5.50. It’s part of a wider health effort.
Italy: links vape tax to tobacco. Since 2021, duties have climbed. Now, a 10ml bottle gets taxed at about 25% of what a cigarette pack does, plus 22% VAT.
Ireland: it’s still just the 23% VAT, no extra vape tax, for now. But new rules could come into effect in 2025.
Netherlands: Only VAT applies now, but a vape-specific tax is on the horizon, likely from 2026.

Depending on the country, your vaping products might cost a little or a lot more.

How to Save Money and Keep Vaping

Vape lovers can adopt several strategies to manage the financial impact. Here are some suggestions:

1. Purchase in Bulk or Look for Discounts

Bulk buying can be a smart financial move for frequent vapers. Many vape shops and online retailers offer discounts or special deals for buying multiple bottles of e-liquid or vape accessories at once. By stocking up ahead of the vape tax implementation or during promotional periods, you can mitigate the higher costs imposed by excise duties.

How does this work?

Purchase a 3-month supply of e-liquid during a sale or with a coupon to save money compared to buying smaller quantities regularly at higher taxed prices.

2. Support Local and Independent Vape Shops

Local vape shops often provide personalised service, expert advice, and loyalty discounts that can help consumers get better value for their money. Building a relationship with local retailers may also give access to exclusive deals and community events that offer savings or free samples.

How does this work?

Many independent shops run loyalty programs where, after a certain number of purchases, customers earn discounts or free products, easing the burden of increased costs due to vape taxes.

3. DIY E-Liquid Mixing

For the more experienced and adventurous vaper, DIY e-liquid mixing can be an economical way to continue vaping despite higher prices. By buying base liquids, nicotine, and flavour concentrates in bulk, users can create their own customised e-liquids at a fraction of the retail cost.You can use our e-liquid calculator for DIY

How does this work?

A DIY mixing kit might cost £50 initially but can produce several litres of e-liquid, making it cost-effective in the long term, even with some excise duty applied to base ingredients.

Key Points to Remember

Now, let’s have a quick recap of what we’ve discussed above about the vaping tax budget in the UK:

Tax applies only to e-liquids.
Flat rate tax of £2.20 per 10ml of e-liquid, regardless of nicotine content or flavour.
Manufacturers and importers must register with HMRC and use duty stamps.
The grace period for existing stock is until 1st April 2027.
Expected to raise approximately £15 million annually by 2029–30.

Final Thoughts

The new vaping tax is a major change in the UK’s approach to regulating vaping. It introduces a clear cost increase for e-liquids while leaving devices. Users need to prepare for higher costs and changing market dynamics. While vaping remains a cheaper alternative to smoking, the balance between affordability and public health priorities will be carefully watched in the coming years. So be prepared for the big change! Buy your favourite e-liquids and other products beforehand from a reliable vape shop. Want to enjoy same-day delivery? Place your order now at Alectrofag to get same-day dispatch before 4 pm.

Toby Jones - Vape Product Reviewer

Store Assistant & Content Writter

Toby Jones has been part of the Alectrofag team for over six years, combining his first-hand experience with vaping and a genuine passion for helping others along their journey. Having started vaping in 2016 to quit smoking, Toby quickly found himself working in the shop, where he’s shared countless stories and advice with customers over the years. Beyond the shop floor, he’s also put pen to paper, writing vaping guides with a personal touch that only comes from real experience. When he’s not offering advice or writing, Toby enjoys long beach walks, the occasional Piña Colada, and embracing life’s simple pleasures - because, as he likes to say, you can never get enough of the simple things.