UK Vaping Products Duty: What the New Vape Tax Means from 1 October 2026
The UK's new Vaping Products Duty (VPD) begins on 1 October 2026. The flat-rate charge will apply to vaping liquid by volume, including nicotine-free products, while new packaging rules will introduce vaping duty stamps.
Vaping Products Duty is being introduced across the UK as a new excise duty on vaping liquid. It is commonly described as the UK vape tax or vape duty. The charge is calculated by the amount of liquid in a product rather than by its nicotine strength.
The change comes into force on 1 October 2026, alongside the Vaping Duty Stamps Scheme. For consumers, the most visible effects are likely to be changes to packaging and, over time, changes to prices. The timing and size of any retail price increase will depend on stock, suppliers and how businesses pass the duty through the supply chain.
At a glance
- VPD starts on 1 October 2026.
- The rate is £2.20 per 10ml, equal to 22p per millilitre.
- Nicotine-free vaping liquid is included.
- Products made or imported from 1 October must carry the appropriate duty stamp before being released for sale, unless they are in duty suspension.
- Eligible unstamped stock made or imported before 1 October can be sold during the transition period, which ends on 31 March 2027.
- From 1 April 2027, vaping products outside duty suspension must carry a valid duty stamp.
What is Vaping Products Duty?
Vaping Products Duty is a new UK excise duty on vaping liquid produced in, or imported into, the United Kingdom. HM Revenue and Customs defines a vaping product broadly as a liquid containing nicotine and glycerine or glycol, or any liquid intended to be vaporised by a vape, provided it is not a medicinal product or a tobacco product.
The duty is based on volume. A product does not move into a lower or higher tax band because it contains more or less nicotine. The same flat rate applies to eligible liquid whether it contains nicotine or not.
The duty is charged on liquid rather than on vape hardware by itself. A device, tank, coil or accessory sold without vaping liquid is not directly subject to VPD simply because it is used with a vape.
How much is the UK vape tax?
The rate is £2.20 for every 10ml of vaping liquid. That is equivalent to 22p per millilitre. The following examples show the duty component only:
| Example product volume | Calculation | VPD |
|---|---|---|
| 2ml of vaping liquid | 2 × £0.22 | 44p |
| 10ml bottle | 10 × £0.22 | £2.20 |
| 50ml of liquid | 50 × £0.22 | £11.00 |
| 100ml of liquid | 100 × £0.22 | £22.00 |
| 1 litre of liquid | 1,000 × £0.22 | £220.00 |
These figures show the duty itself, not a guaranteed change to the price on a shop shelf. VAT, distribution costs, wholesale and retail margins, promotions and supplier agreements can all affect the final price. HMRC has said that whether the duty is passed on through the supply chain is a commercial decision.
Does VPD apply to nicotine-free e-liquid?
Yes. The new vape tax applies to eligible vaping liquid regardless of nicotine content. That means zero-nicotine e-liquid and other liquids intended to be used in a vape are included, as well as nicotine-containing products.
The rules also cover liquid intended to be mixed before it is vaporised. This matters for products such as shortfills and nicotine shots. The relevant duty point and record-keeping requirements are primarily matters for the manufacturer, importer or other business responsible for placing the product into the UK market.
For a consumer-friendly explanation of common UK e-liquid formats, including 10ml liquids, 50/50 blends, higher-VG liquids and shortfills, see this guide to UK e-liquid formats. It is a retailer guide and should not be treated as HMRC tax advice.
Will vape prices rise on 1 October?
Not necessarily all at once. The duty applies to products manufactured or imported from 1 October 2026, while retailers can continue selling eligible stock already held before that date until the end of the transition period.
As older stock sells through, new duty-paid stock will become more common. Some businesses may pass on all of the additional cost, some may absorb part of it, and others may change prices gradually. The result may differ between brands, bottle sizes and product types.
Action on Smoking and Health has also said that consumers should not necessarily expect prices to change overnight. It has called for the impact to be monitored, including the effect on youth vaping, adult smoking and the price difference between vaping and tobacco.
What are vaping duty stamps?
Vaping duty stamps are security labels introduced alongside VPD. For products released for sale in the UK, the stamp must generally be attached to the outermost part of the final retail packaging. Depending on how the product is packaged, that may be a box or a bottle sold without an outer box.
The stamp is intended to show that the product is within the new excise system. Digital stamps also include a data-matrix feature that supports scanning and traceability at defined points in the supply chain.
There are exceptions for products held in approved duty-suspension arrangements. Those arrangements allow duty to be deferred until the goods leave the approved premises. They are mainly relevant to manufacturers, importers and warehousekeepers rather than ordinary consumers.
What happens to vape stock made before 1 October?
Eligible vaping products produced or imported before 1 October 2026 can remain unstamped during a six-month sell-through period. Retailers and wholesalers can continue to store and sell that stock until 31 March 2027, provided it meets the transitional rules.
From 1 April 2027, all vaping products outside duty suspension must carry a valid vaping duty stamp, regardless of when they were produced or imported. Unstamped products must not be sold from that date and may be seized by enforcement authorities.
For businesses, the practical task is to keep clear records showing where unstamped stock came from and when it was produced or imported. HMRC advises retailers to retain normal commercial records, including invoices and delivery notes, and to take care when a supplier offers unstamped stock after 1 October.
Who has to register for VPD?
Not every vape shop has to register directly with HMRC. A business that only sells or distributes duty-paid vaping products wholesale or retail does not normally need approval under the Vaping Products Duty or Vaping Duty Stamps schemes.
Approval is relevant to businesses that manufacture vaping products in the UK, store products under duty suspension, or need to buy and affix vaping duty stamps. Importers normally pay VPD through their customs declaration when products arrive in the UK, unless the goods immediately enter an approved duty-suspension arrangement.
HMRC says businesses responsible for the duty must account for it when the relevant duty point is reached. Payments are made through the Vaping Products Duty online service, with payments normally due by the 15th of the month.
Why is the Government introducing the vape tax?
The Government says the policy is intended to reduce the affordability and appeal of vaping products, particularly for young people and non-smokers. It has also announced increases to tobacco duty alongside VPD, with the stated aim of maintaining a financial incentive for adult smokers to move away from cigarettes.
The policy is likely to remain subject to debate. Public-health organisations have supported action on youth vaping but have also warned that vaping must remain an affordable alternative for adults who smoke and want to quit. The effect of the tax will depend on prices, enforcement and how the market responds after the rules begin.
Key dates for Vaping Products Duty
| Date | What changes |
|---|---|
| 1 October 2026 | VPD and the Vaping Duty Stamps Scheme start. New liable products released for sale need the appropriate stamp, unless covered by duty suspension. |
| 1 January 2027 | Only digital duty stamps can be affixed to vaping products. |
| 31 March 2027 | The transition period for eligible unstamped stock produced or imported before 1 October 2026 ends. |
| 1 April 2027 | Vaping products outside duty suspension must carry a valid duty stamp. Unstamped products must not be sold. |
Frequently asked questions
When does the UK vape tax start?
Vaping Products Duty starts on 1 October 2026.
How much is VPD per 10ml?
The rate is £2.20 per 10ml of vaping liquid, or 22p per millilitre.
Does VPD apply to zero-nicotine liquid?
Yes. Eligible vaping liquid is subject to the duty whether it contains nicotine or not.
Will every vape product cost £2.20 more?
No. £2.20 is the duty on 10ml of liquid, not a fixed retail-price increase. The final price and the timing of any change will depend on the product, supplier and retailer.
Can shops sell old unstamped vape stock?
Eligible stock produced or imported before 1 October 2026 can generally be sold until 31 March 2027. From 1 April 2027, products outside duty suspension must carry a valid duty stamp.
Do ordinary vape retailers need to register for VPD?
Retailers and wholesalers that only sell or distribute duty-paid products do not normally need VPD approval. Manufacturers, businesses storing goods under duty suspension and businesses handling duty stamps have additional approval requirements.
Official sources
This article was researched and checked on 30 September 2026. The rules can change, so businesses should rely on the latest HMRC guidance for compliance decisions.
- HMRC: One month until Vaping Products Duty and the Vaping Duty Stamps Scheme start
- GOV.UK: Prepare for Vaping Products Duty and the Vaping Duty Stamps Scheme
- HMRC: How to pay Vaping Products Duty
- HMRC: Handling wholesale or retail vaping products in the UK
- Finance Act 2026: Vaping Products Duty provisions
- ASH: New vape tax needs careful monitoring
This article is general news information, not tax, legal or financial advice. Product and business operators should check current HMRC guidance before acting.
