Understanding the New UK Vape Tax
Vape tax is a proposed excise duty on e-cigarette products – a “sin tax” similar to tobacco duty – intended to make vaping slightly more expensive and discourage non-smokers (especially young people) from taking it up. Currently, there is no specific tax on vapes in the UK, only the standard VAT (20%) that applies to most goods. All vape products (e-liquids, devices, disposables, etc.) are treated like normal consumer goods for VAT. However, a new vaping duty will be introduced from October 1, 2026, significantly affecting liquid prices. In practice, e-liquids will carry an additional tax, while devices (pod kits, mods) remain subject only to VAT.
Vape Juice to Cost £2.20 More per 10ml
Vape taxes across Europe differ significantly. Some countries impose dedicated excise duties on e-liquids, while others apply only standard VAT. A few have tied vape taxes to tobacco rates, whereas others have held off entirely. The result is a patchwork of rules, with wide variations in how much vapers pay depending on where they buy. EU laws leave vaping to each country’s discretion (countries are urging a unified approach), so vapers shopping abroad or online will see very different taxes depending on the destination.
How the Vape Tax in the UK Works Today
Before the vape liquid tax arrives, UK vapers already pay 20% VAT on everything. So, the government does earn from vaping, but a dedicated vape duty starts only in October 2026.
If you buy a £10 vape kit, coil, or bottle of e-liquid, roughly £1.67 of that price is VAT. There are no additional vape-specific taxes. For example, a typical 10ml nicotine salt bottle costing £5 (including VAT) actually breaks down to about £4.17 base price + £0.83 VAT. Devices and pods are taxed the same way.
Because vapes aren’t excise goods yet, their prices rise only with inflation or normal profit margins. Vaping products are currently taxed as a consumer product at 20% VAT. There is no budget vape tax on vaping products.
This contrasts with tobacco: cigarettes are taxed heavily in the UK, with an excise duty of about £6.70 per 20-cigarette pack plus 20% VAT, making them significantly more expensive. The absence of a vape duty has been a relief for vapers (lower prices than cigarettes) and a revenue gap that the government has now decided to fill.
Tax on Vapes from 2026: What the Budget Announced
Spring Budget 2024 (Mar 2024) – The Chancellor announced that, starting October 1, 2026, the UK will introduce a Vaping Products Duty. A consultation ran from March to May 2024 on how to structure it. The plan (originally drafted under the previous government) was for a tiered duty based on nicotine strength: £1.00 per 10ml for nicotine-free liquids, £2.00 per 10ml for low-strength (up to 10.9 mg/ml), and £3.00 per 10ml for higher strengths. An accompanying one-off hike in tobacco duty was also proposed, to keep smoking more expensive than vaping.
These measures were framed as part of a wider anti-youth vaping strategy: the government stated the duty is intended to discourage young people and non-smokers from vaping, while maintaining the financial incentive to choose vaping over smoking. (In short, keep vaping cheaper than smoking but not too cheap.)
Autumn Budget 2024 (Oct 2024) – The new government (Labour) confirmed the tax after the election but scrapped the tiered rates. Chancellor Rachel Reeves announced a flat dutyof £2.20 per 10 mL of e-liquid . This simplifies the earlier plan and applies equally to all strengths and brands. The 2024 consultation feedback shaped this decision: officials noted a £2.20 flat rate duty on vaping would raise similar revenue to the 3-tier plan and is in line with the majority of international counterparts”. The vape tax budget documents also reiterated the one-off tobacco duty rise (about £2.20 per 100 cigarettes) so that the price gap between smoking and vaping stays roughly the same.
In short, from Oct 2026, every manufacturer or importer of e-liquid will pay £2.20 for each 10ml placed on the market. The duty stamps will be enforced from April 2026, and HMRC (the UK tax authority) will regulate the supply chain. At retail, this excise will show up as higher prices for liquids. Government analysis suggests it was chosen to “raise vital revenue” (supporting services like the NHS) and to make vaping noticeably more expensive, particularly for heavy liquid users.
How Vaping Tax Affects Product Price
The new duty has a clear impact on e-liquid prices. In practice, when the £2.20/10 mL tax kicks in, it will be added on top of the liquid’s wholesale cost before VAT. Because VAT (20%) is charged on the total price (including excise), the consumer also pays VAT on the duty. For example, suppose a 10ml nicotine-salt bottle currently costs £3 (including VAT). Under the new duty, the cost to the retailer would increase by: So the new total would be roughly £5.64 — almost doubling the retail price
This jump scales with volume. A 50 ml shortfill that sells for, say, £10 would see £11 extra vaping tax (5 × £2.20), raising its pre-VAT cost to £21. With VAT, the final price would be about £25.20, over double. Even a 100ml shortfill incurs £22 tax (10 × £2.20) on top of its base price. In short, vapers should expect a roughly £2.20 increase for every 10ml of e-liquid they buy. Industry sources, for instance, note that translates to ~£2.20 more for a 10ml bottle, £11 more for 50ml, or £22 more for 100ml (all before VAT).
UK Vape Tax: What Products Are Affected and What Aren’t?
| Features | Subject to Vape Duty? | Notes |
|---|---|---|
| Nicotine Salt E-Liquids | Yes | All strengths |
| Freebase Nicotine E-Liquids | Yes | Applies to any amount of nicotine |
| Nicotine Booster Shots | Yes | Even unflavoured shots are taxed |
| Shortfills | Yes | Applies irrespective of flavouring |
| Vape Devices & Kits | No | Hardware is not included in the duty |
| Coils, Pods, Tanks | No | Accessories are not affected |
Disposable Vapes Ban: Regulation Meets Tax Policy
The vape tax was announced alongside a ban on single-use (disposable) e-cigarettes – part of a package of measures on youth vaping and the environment. Starting 1 June 2025, it will be illegal in the UK (England, Scotland and Wales) to sell or supply any disposable, non-refillable vapes. Vapes that must be thrown away after a fixed number of puffs – the small colourful devices that exploded in popularity among teens – will disappear from the UK come June 1.
Under this ban, all rechargeable vapes with replaceable coils or refill ports remain legal. The rule is meant to cut down on plastic waste (millions of disposables were littered every week) and curb a youth vaping trend. In regulatory terms, it leverages environmental law more than health law, reflecting reports that littered vapes have become a pollution issue. (Health advocates also point to teenage vaping surges after sweet disposables hit the market in 2021.)
In practical terms, disposables (which currently cost perhaps £3–£5 each) will be off the table. Consumers who relied on them will have to buy refillable kits and e-liquid. Coupled with the new vape tax, this means adults should budget more for their vape habit, but in any case, any ongoing smoker switching to vaping will still see a net health benefit. (Notably, the tobacco duty rise is calibrated so that a pack of cigarettes also goes up by an equivalent amount, maintaining that financial incentive to vape.)
Vape Taxes Across Europe
Across Europe, tax rules on vaping vary widely because EU law does not yet cover e-cigarettes. In fact, 16 EU member states (including France, Germany, Ireland and the Netherlands) recently urged the EU Commission to update its tobacco tax directive to include vapes, precisely to avoid this patchwork. Until then, each country sets its own policy. Here are the highlights for key countries: .
Germany’s High Vape Tax Germany imposes a high excise on e-liquids. As of 2025, the rate is about €0.26 per ml for all e-liquids, rising to €0.32 by 2026 (around 5–10 pence per 2ml puff). This applies to both nicotine and nicotine-free juice. Overall, Germany’s vape tax is among the highest in Europe.
France now has a flat excise duty of €0.15 per ml on e-liquids, introduced in early 2025, on top of the standard 20% VAT. This adds about 25% to the price of a 10ml bottle (for example, a €4 bottle now carries €1.50 in tax). The tax applies equally across all e-liquid products and was introduced as a public health measure.
Italy taxes vaping products as a percentage of tobacco excise. Since 2021, Italy has incrementally raised the duty on 10ml nicotine bottles from 15% of a pack’s tax to about 25% in 2023. With Italy’s 22% VAT on top, a 10ml bottle has become a few Euros more expensive than it was a few years ago.
Italy taxes vaping products as a percentage of tobacco excise. Since 2021, Italy has incrementally raised the duty on 10ml nicotine bottles from 15% of a pack’s tax to about 25% in 2023. With Italy’s 22% VAT on top, a 10ml bottle has become a few Euros more expensive than it was a few years ago.
The Netherlands currently levies no specific vape tax (just the EU minimum 21% VAT). However, the Dutch government has signalled that it will implement a national vaping tax in the future (likely from 2026 at the earliest) to align with neighbouring countries.
Europe’s patchwork of vape taxes means a UK vaper travelling abroad or ordering from EU shops will see varied prices. Germany and some Eastern states tax very heavily per ml; France and Ireland currently charge only VAT; Italy uses a percentage system. These differences distort cross-border sales, so EU finance ministers have asked Brussels to harmonise tax on vapes.
What UK Vapers Need to Know About the Vape Tax
For everyday vapers in the UK, the takeaway is this: from October 2026, your e-liquids will cost more. Every bottle or bottle-equivalent will carry a £2.20 surcharge per 10 mL (plus VAT). Plan accordingly. If you use small 10ml bottles, consider stocking up before the new vape tax hits; if you prefer 50ml or 100ml shortfills, expect to pay roughly £11–£22 more per bottle. Devices (pod kits, mods, tanks) remain subject only to VAT, so there’s no new tax on hardware. Vapes are still sold in duty-free shops, which could offer a tax-free option while travelling, though selection and rules vary.
When travelling or ordering from Europe, remember local taxes. A 10ml bottle may cost very different amounts in Germany, France, vs. the UK. For example, in Germany, you might already pay €0.26 per ml in tax (about £2.30 for 10ml); in Ireland, it’s just 23% VAT with no excise. Depending on its origin, these disparities can make the same product much cheaper or pricier.
We’ve aimed to distil the key points, and we’ll update you if details change, but for now, UK vapers should factor in higher liquid costs and the end of disposables when planning their purchases.
