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UK VPD 2026 - It's here, but what has changed?
UK Vaping Product Duty.
It’s now here but what’s changed?
October 1st has come and gone which means the Vaping Product Duty (Tax) has now come into effect, but why didn’t everything change overnight?
- Recap on the change.
VPD is the largest change in the landscape of vaping since TPD came to the industry in the UK in 2016. A whole decade since any major overhaul or change has affected it. With a change this big the industry had to begin to comprehend how it will affect everything and adapt to these changes. Whether it is the manufacturers and wholesalers that provide the products, the shops you visit and stock up from, and most importantly the customers who keep us going and allow us to provide the services we do.
An in-depth look into what VPD will bring is linked below in our previous blog post.
- What we have seen.
It seems a lot more of our customers became notified of the vaping duty that was coming into effect at the start of the month as it filtered into the news and social media, but not many were aware of how it would actually have an impact on their shopping with us once it had become active. Many thought it would change overnight and the same products on the shelf from the previous day would have increased in price between our end of day close and opening up the next morning but this wasn’t the case.
- What's happening and when.
Currently the products in store will remain at their pre-duty pricing due to their production dates being prior to that of October 1st until the stock turns over and is replaced on the shelves by newer stock that may be produced after that date.
Many manufacturers and wholesalers prepared for this by producing a higher stock count to allow them to continue with a holding of stock that will be at pre-duty pricing for longer, keeping prices lower until the newer replacements filter into the market which will be at the new post-tax price. Allowing customers to obtain a stock of their favourite products at their usual price before beginning to decide how they will continue once that has been used up.
The VPD that will be added onto stock will be a 26.4p (Inc VAT) per millilitre of vape liquid and applies by the volume of the bottles you are purchasing. However this is the floor of the increase and doesn’t accommodate any additional manufacturing or design costs that may apply too before the product has reached shelves. As a rough increase you are looking at least £2.64 (Inc VAT) increase to an average single 10ml bottle of vape liquid on top of its standard price to begin with, without any additional cost during manufacturing or design that may also apply.
Since October has now started and the questions from customers have been flowing the main point we are pushing to them is that it will remain at the pre-tax price point up until our current stock is replaced and the replacements of stock that come into the store if made after the First of October will be affected by the Vaping Product Duty and shown on them holding the new stamp duty stickers and after December 2026 the QR Code Stamp. This is when things will start to become more apparent and obvious to the customer.
- The Grace Period.
Although retailers have been given a period up until 31st March 2027 to sell all pre-tax products on shelves, and we have stocked up on our best selling products to help customers to continue to purchase products at pre-tax prices for longer. The transition that they will see in-store may change their vaping habits or preferences in regards to flavours. As the most popular items that have a faster sell-through rate it is inevitable that they will require restocking sooner. Resulting in a higher probability these will see the price increase and tax added to them first, in comparison to the less popular products and a shift in customer preference may come in the short term to help them further avoid the tax added to their main choices of liquids and brands.
Turnover of stock then is where the new tax will creep into customers' carts sooner. Those that are less inclined to change their preferences will see the increase earlier than those that are more flexible with what they like to vape. Especially with the more mainstream selections of flavours such as ‘blue raspberry’, ‘lemon and lime’, ' pink lemonade’ and ‘fresh mint’ which will be hit quicker due to their increased popularity and in-store sell through rate.
- Customer reactions.
It may also prompt a shift for those customers that were used to the larger kits, sub-ohm vaping has become the biggest target of this duty. Being a volumetric increase and sub-ohm users traditionally using the 100ml/200ml bottles being hit with a substantial increase it may push them to reconsider their styles of vaping to become more economically sustainable.
We have already had customers in-store that have decided to retire their sub-ohm, high wattage kits in favour of mouth to lung kits which use lower wattage and therefore less liquid in comparison as they don’t want to quit vaping entirely and definitely don’t want to back track after the work they have put in and go back to smoking cigarettes. As this would defeat the point and erase the hard work that they have put in during their vaping journey.
- The take-away from this.
Even with this new Duty being applied to Vape Liquids it will still remain the cheaper alternative to continued smoking and should stay that way. Although the difference now is considerably smaller, the benefits of switching from cigarettes are still there and relevant.
Being a local independent vape retailer we will continue to do all that we can to support our customers. Whether you are new to vaping and need any advice on starting out, long-term customers looking for a direction they can move to in regards to these new changes, where it allows them to continue vaping responsibly. Plus everything in between. All whilst upholding our promises to our customers, offering the best support and products on the market whilst remaining continually compliant in line with regulations existing and new.
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