UK Vape Tax 2026.

Vaping Product Duty - The 2026 Vape Tax. 

From October 2026 vaping in the UK will become more expensive with the introduction of the Vaping Products Duty (VPD). This introduces a nationwide excise tax applied per millilitre of eliquid. 

This change will drastically change the landscape of vaping in a way it hasn't been affected before. Increasing costs in a way that is both immediate and difficult to absorb gradually due to the lack of a phased introduction into its existence and no adjustment period built into its system. Affecting all aspects of the industry at once. 

The Increase: 

From the 1st October 2026 all eliquids produced after this date - regardless of nicotine strength will face a flat tax addition of 22p per ml, if you include the added VAT on top it increases to 26.4p per ml total. This is introduced as the base increase onto Vaping Liquids, but that doesn't entirely mean it will be the increase in total, that is the base level of increase without factoring in additional costs from any manufacturing and company cost increases to do so. It encompasses all aspects of Vape Liquids, Including Nicotine Salts, Freebase Liquids, Short-fills and Pre-Filled pods but also the base mixes of eliquids if you create your own liquids as DIY kits. 

This duty will be applied at time of manufacture or import level and will be built into the product before it reaches us as a retailer and therefore before a customer has their hands on it. It is not a discretionary price increase and not something we can opt out of. 

Experience Changes:

These changes will completely affect how retailers will have to work, and how customers experiences will alter with this new change being brought into place when visiting shops or online.

• 10ml bottles are typically the most frequently sold products in Vape Shops and their corresponding Multi-Buy deals have been a prominent part of the UK Vape Market for many years. The increase with this could show as an example a deal of 4-4-£10 becoming closer to a 4-4-£22* due to the additional taxes coming to the market. Which is a substantial increase over the previous costs.
• Shortfills will be hit harder due to their higher quantity of eliquid content. As an example a bottle previously costing around £12.99 will now increase to between £35-£40* as an estimate depending on how it is sold. Showing a more substantial increase.*

*(not exact cost increases, used as a potential costing example)

Why vaping may begin to feel more expensive than smoking:

Although this vape tax will increase the price of continued vaping it is still expected to be cheaper to do so than continue smoking. Typically with vaping purchases customers prefer to stock up to ensure that they have supplies to last a longer period of time than those who smoke. As smokers tend to only purchase more when their current box is low or empty.  

The UK isn't the only one:

The UK isn't the only country to be taxing vape liquids, many European countries currently tax vaping products to different levels. However the UK is introducing its own taxation on vapes to help with the following objectives:

• Reduce youth uptake
• Bring vaping closer in line with tobacco taxation 
• Maintain a price gap between vaping and smoking, but decrease the gap itself. 

The reality of the vape duty beyond the policy however is that the behaviour to vaping will adapt for users. Whether that will be through reduced consumption due to the increases, some will absorb the new costs and carry on with their usual usage habits or some may even begin to look for alternatives. 

How vape duty will work: 

From October 2026 there will be duty stamps on new products to confirm that the tax has been paid on them and by April 2027 all eliquid products must carry them. This will show a clearer framework for compliance by companies and retailers but relies on more than a label on a product and depends on consistency across a whole market. However in the meantime there will be price variations across flavours, strengths and brands. 

Between October 2026 and April 2027. 

This change in the industry will be a massive one and the transition period may become confusing for customers in the meantime as retailers are legally allowed to sell off their pre-duty stock alongside the newer taxed products in this time period. Which will lead to pricing inconsistencies between their products even within the same brands, ranges, flavours and strengths. Especially with the most popular options. Therefore it isn't solely a case of one flavour becoming more expensive than another. 

What you could see in-store realistically could be: 

• A 20MG variant is priced lower than the 10MG variant of the same flavour.
• One flavour in a range is priced duty free, whilst others have the duty added until the stock turns over and is replaced.
• Identical-looking products with different pricing dependant on when they were restocked. 

These potential problems arise for retailers due to stock flow and popularity amongst customers. Different products sell at different rates, with faster and slower moving products as there is in any store in any industry. But for vape retailers the newer batches will have the duty whilst older products wont until they are replenished. This is due to the pricing structures co-existing until the transition period has been completed. 

Although this will be awkward to deal with as retailers, managing the changing of the stock pricing whilst changing over the margin for error becomes smaller. This will introduce confusion for customers who vary their options during purchases as the pricing structures are changing.  

Our views and views on moving forwards

There isn't any debating about if the duty will affect the vape industry, it will and in a big way that a change like this hasn't been seen before. Leaving us all to have to adapt to these changes as much as the next vape shop will. 

However as a responsible retailer we will do all we can to provide the right information to our customers and try to help point them in a direction that will benefit them and fit in with their plans of action when it comes to continued vaping whilst structuring ourselves to become compliant and remain compliant with the changes that are coming to our industry. 

As an independent local vape retailer we rely on the surrounding communities and it's people with whom we have helped in their journey to quit smoking and turn to vaping. Plus their decision in choosing to use us as their supplier and to support us as a specialist vape shop. 

We sincerely hope that all of our valued customers and our new customers continue to use us through these changing times as our drive to help and assist won't be changing. 

Thank you for reading and supporting your local vape retailer.