The UK Vape Tax is one of the biggest changes to the vaping market in 2026. The government is introducing a new Vaping Products Duty on vaping liquid from 1 October 2026.
Unlike the existing rules, the new duty is an excise tax specifically applied to vaping liquids. It affects manufacturers, importers and businesses across the vaping supply chain, while consumers may ultimately see the cost reflected in retail prices.
According to HM Revenue & Customs, the duty will be charged at £2.20 for every 10ml of vaping liquid. That works out at 22 pence per millilitre.
What Is the UK Vape Tax?
The UK Vape Tax is formally known as Vaping Products Duty (VPD).
The new duty applies to vaping liquids manufactured in or imported into the UK. Importantly, the rate is based on the amount of liquid rather than the amount of nicotine.
This means nicotine-free vaping liquids can also fall within the duty.
The government says the measure is designed partly to reduce the affordability and appeal of vaping products, particularly among young people and non-smokers, while maintaining an incentive for smokers to move away from traditional tobacco products.
How Much Is the New Vape Duty?
The calculation is straightforward:
- 1ml: 22p
- 2ml: 44p
- 5ml: £1.10
- 10ml: £2.20
- 20ml: £4.40
- 50ml: £11.00
- 100ml: £22.00
For example, HMRC states that a 2ml pod creates a duty liability of 44 pence, while a 10ml refill bottle creates a duty liability of £2.20.
The tax is therefore directly linked to the quantity of vaping liquid contained in a product.
When Does UK Vape Tax Start?
The new duty takes effect on 1 October 2026.
HMRC opened applications for relevant approvals from 1 April 2026 so businesses could prepare before the duty became operational.
This gives manufacturers, importers, wholesalers and other affected businesses time to make changes to their systems and stock management.
Will the Tax Increase Vape Prices?
The introduction of a new duty creates an additional cost in the supply chain.
However, the final retail price of a vape product is not determined by the duty alone. Businesses may also have manufacturing, distribution, VAT and retail costs.
Therefore, the exact amount consumers pay will depend on individual products and retailers.
What Does the Tax Mean for Retailers?
Retailers need to understand how the new duty affects their stock.
The government is also introducing Vaping Duty Stamps. From 1 October 2026, vaping products manufactured or imported for the UK market generally need an appropriate duty stamp on their final retail packaging, subject to the applicable rules and duty-suspension arrangements.
Retailers should therefore pay attention to stock purchased after the new system begins.
Final Thoughts
The UK Vape Tax represents a major change for the vaping industry.
The headline rate is simple: £2.20 per 10ml of vaping liquid, regardless of nicotine content. But the practical impact will extend beyond the tax calculation, affecting manufacturers, importers, wholesalers, retailers and potentially consumers.
For businesses, preparation is especially important as the new duty and vaping duty stamp system begin on 1 October 2026.