Vape Town Blogs And Guides

For the past decade, vaping has been viewed as an affordable and healthier alternative to smoking. 

But the ‘affordable’ benefit of vaping is set to take a slight hit starting October 1, 2026, when the government’s new vaping tax, Vaping Products Duty (VPD), comes into effect.

This new tax will lead to a significant increase in the cost of vape liquids — and it’s important that the UK’s nearly five million vapers are prepared for what’s around the corner. 

The Key dates for the UK's implementation of the Vape Tax are:

• Any vapes manufactured in, or imported to the UK after October the 1st 2026 must have the Vaping Products Duty (VPD) applied to them.
• Any vapes sold in the UK after April the 1st 2027 must have the Vaping Products Duty (VPD) applied to them.

In this post, we’ll outline everything you need to know about the upcoming vape tax, including what it is, why it’s being introduced, the products that it applies to, and how consumers can prepare.

Understanding the New UK Vape Tax 2026

The new UK Vape Tax 2026 was announced in July 2025 and will take effect on October 1st 2026. It is the first excise duty levied on vaping products in the UK. 

Under the initiative, a tax of £2.20 per 10ml of vaping liquid will be applied to all vaping liquid products, regardless of container size or nicotine content. The government initially proposed a complicated tiered system that would tax different vaping products at different rates based on their nicotine strengths, before eventually settling on a single-tax system that would be applied across the board to all liquids intended for use in vaping devices. 

Standard VAT will also apply to the post-VPD cost, resulting in even higher prices. The cost to sell a 10ml bottle of liquid will increase by £2.20 in tax and 44p in standard VAT, leading to an overall per-unit price increase of £2.64. In effect, that means that a 10ml bottle of vape juice that today costs £3 will nearly double in price, to £5.64.

Why Is Vaping Product Duty (VPD) Being Introduced?

The new UK vape tax (VPD) is going to be implemented in two stages and forms part of the government’s objective to reduce the number of young people and non-smokers taking up vaping by impacting its affordability, which it believes will make vaping less appealing. 

"The government is committed to reducing the affordability and appeal of vaping products, particularly among young people and non-smokers, while maintaining the financial incentive for smokers to switch to less harmful alternatives.

VPD is being introduced to reduce the number of people taking up vaping, particularly non-smokers and young people, by reducing affordability.

The flat rate is intended to simplify calculations, reporting, and compliance for both businesses and HMRC, alongside reducing the risk of errors or disputes over product classification based on nicotine content. "  UK Government

At the same time, the tax is intended to maintain the financial incentive for current smokers looking to switch to vaping, which is considered by health authorities to be less harmful than smoking cigarettes. Since the exchequer is applying an additional tax of £2.20 per 100 cigarettes at the same time as VPD, vaping will continue to be much more wallet-friendly compared with smoking cigarettes.

How the 2026 Vape Duty Will Impact Vape Juice Prices

There’s no way to sugarcoat it: the impact that VPD will have on vape juice prices will be significant.

Each 10ml of vaping juice will be subject to an additional £2.64 (£2.20 in tax; 44p in VAT). 

• 2ml pod: £0.53 increase.

• 10ml bottle: £2.64 increase

• 50ml shortfill: £13.20 increase.

• 100ml shortfill: £26.40 increase.

That means moderate-to-heavy vapers who consume 50ml of e-liquid per week could see a cost increase of £13.20 per week, or £52.80 per month. 

In addition to impacting the cost-per-unit of vaping liquids, the new vape tax will likely spell the end of affordable multibuy deals. While many vapers depend on multibuy deals to lower the per-unit cost when buying their favourite vape flavours, the significant cost increases incurred by the vape juice sellers mean they may no longer be viable. While it’s currently possible to buy 2 50ml shortfills for £20, once VPD comes into effect, the tax alone on those two products would be £26.40

The Products Hit Hardest By VPD

All vaping liquids will be subject to VPD regardless of nicotine content or flavour, at a rate of £2.20 per 10ml. 

While those costs are uniform, the impact on specific vaping products will vary, with users of some liquid product types feeling the effects of the rising costs more than others.

Shortfills

Shortfills have historically been the most economical option for vapers, but that’s set to change. Since VPD is calculated based on volume, the liquids that come in the bigger containers — like shortfills, which are typically 50ml or 100ml in size — will trigger the highest tax bill. 

A 50ml shortfill that costs £12.99 will cost £26.19 come October 1; A 100 ml that costs £15 will be £41.40; and a 200ml shortfill that costs £19.00 may well cost £71.80. And that’s before the cost of a 10ml nicotine boost, which will be subject to £2.64 in additional costs.

10ml Refill Bottles

10ml refill bottles will be subject to an additional £2.64 in costs, which will effectively double their price. While the cost-per-unit increase is not as dramatic as the rising costs of shortfill bottles, users who go through multiple bottles a week will feel the difference.

Switching to an MTL pod system can be an effective way for users to save money, since those device types use less wattage — and less liquid — than direct-to-lung vapes. 

Prefilled Cartridges

2ml prefilled cartridges will experience only a mild price hike of 53p per pod, but given how frequently they need to be replaced, it’s likely that users of these devices will feel the price increase just as much if not more compared to consumers who purchase 10ml refill bottles. 

The Impact of the Vape Tax On Vaping Hardware 

The sweeping changes to how vaping is taxed may be broadly unwelcome by vapers, but there is some good news: vaping hardware is exempt from VPD excise duty. That means vaping devices, coils, batteries, and refillable pods will more or less remain at the same price as they are today.

This presents an opportunity for vapers looking to cut down on their vaping liquid consumption without impacting their vaping experience. If you’re still using an old, less-efficient device by the time October 1, 2026, rolls around, you can upgrade to a newer MTL device without incurring additional costs. 

Who Will Be Affected By The Vape Tax? 

In effect, everyone who has some stake in the price of vape juice will be affected. This applies to manufacturers, importers, and consumers. 

For this article, we’ll focus on the impact on consumers. Historically, UK vapers have been able to buy vape juice at rock-bottom prices, in large part because of the absence of vape-specific excise duties. With the implementation of VPD, that era is coming to an end. While it’s been possible to buy high-quality vape liquids for around £2 - £4 per 10ml bottle, the added cost incurred by Vape Juice Duty means those prices will no longer be feasible.

It’s worth noting that the arrival of vape taxes does not automatically mean that the cost of vape juice will rise perfectly in sync with the cost of VPD. Some retailers may absorb some of the cost of the increase as part of their business model. However, since most vape sellers already operate at fine profit margins, it’s expected that the vast majority of the cost will be passed onto the consumer.

The other entity that will be affected by the Vape Tax is the Exchequer, which will benefit from increased tax revenue. It’s expected that VPd will generate in excess of £135 million in the year 2026 - 2027, rising to more than £565 million by the end of the decade. 

"This measure will have an impact on an estimated 5.1 million individuals who vape by increasing the price of vaping products. Heavy vapers will face the highest burden from this measure. Another possible response is that individuals will respond to higher prices by moving to tobacco products. The government has announced a commensurate increase to tobacco duties that will take place when VPD is introduced.

This measure is not expected to impact on family formation, stability or breakdown.

This measure is not expected to impact individuals’ experience of dealing with HMRC, as it does not change any processes or tax administration obligations for individuals" UK Government

Understanding The Transitional Period

The new UK vape tax will be introduced on October 1, 2026, but it’ll only be fully implemented on April 1, 2027. The six-month period between those dates is the transitional phase, during which retailers can continue to sell vape juice that was manufactured before October 1, 2026, to consumers.

This period will likely be marked by some confusion, in which prices for some e-liquids — those manufactured before VPD came into effect — are significantly cheaper than those manufactured after October 1st 2026. Many e-liquid retailers are proactively stocking up on their inventory so that they continue to offer affordable prices to their consumers.

April 1, 2027, is the hard cutoff date. At that point, it will be illegal to sell vape juice products that do not have the tax stamp. All vape juice products sold in the UK must possess a tax stamp that demonstrates the excise duty has been paid.

After VPD: Why Vaping Will Still Be More Affordable Than Smoking Cigarettes

The new vape tax will mean that vaping isn’t as affordable as it once was — but with that said, it’ll be significantly cheaper than smoking cigarettes.

This would have been the case anyway, but the government has taken additional measures to ensure that the cost difference remains essentially the same. They’ve announced a one-off tax increase on the cost of cigarettes that’s in line with the cost of VPD. 

That means that vaping will continue to be a much more affordable and healthier alternative to smoking cigarettes. In fact, this was one of the primary objectives of the VPD. The government’s plans were not intended to punish ex-smokers who switched to vaping to save money, but rather to make vaping less appealing to young people and non-smokers.

Buying Vape Juice From An International Seller to Avoid Vape Juice Duty

With the price of vape juice set to rise, many UK vapers will look at alternative ways to procure their favourite flavours — including buying from an international seller that is not subject to the UK’s vape tax requirements.

While this plan might sound effective in theory, it’s not an effective way to avoid VPD. The reason is that the new tax will apply to all manufacturers or importers of vape juice. When a consumer buys online from an international seller, they become the importer, and, as such, will be responsible for paying the excise duty.

This option only really becomes effective if the per-unit cost is dramatically cheaper than existing UK prices and the consumer is happy to pay the additional £2.20 per 10ml. However, this is unlikely to be the case since the cost of shipping will likely be high anyway. 

Buying Vape Juice On Holiday to Avoid Vape Juice Duty

One option that UK vapers do realistically have available to them is to buy their vape juice while on holiday in another country. This can be an effective way to lower the per-unit cost, especially if the country it’s being bought in does not have its own vape juice tax. 

With that said, it’s important to note that vape juice purchased abroad will be subject to customs limits. While there’s not (yet) a precise number cap for how many bottles of vape juice can be brought into the UK, it will likely fall under the ‘personal use’ test. In other words, it’ll likely be fine to bring back a few vape juice bottles, but not fine to bring back large quantities. 

It’s also best to remember that, though the 100ml liquid rule is currently being phased out at UK and international airports, it’s still mostly strictly enforced, which would limit how much you can bring if you only have carry-on hand luggage. 

How Does VPD Compare to Other Countries' Vape Taxes?

It’s not just the UK that is implementing vape taxes. Many already exist in other countries around the world, and there are many more governments that are considering vape taxes, too. 

The EU is currently considering vape excise duties that would apply to all member states, which would see vapes taxed at around 20% - 40% of the retail price. This would follow the lead of Germany, which already has high taxes on e-liquids that equate to more than €3 per 10ml. 

In the United States, some states have begun implementing high vape tax measures, with Washington implementing a 95% tax on all tobacco products in January 2026. 

Before VPD: Key Tips For Vapers

The new vape duty will lead to a marked increase in the cost of e-liquids, but that doesn’t necessarily mean that vapers have to simply accept that they’ll be left out of pocket.

By adopting a few smart vaping strategies and taking a proactive approach to buying, UK vapers can minimise the impact that the VPD tax will have on their wallets.

At Vape Town, we’ve put together a few easy-to-follow tips that can make a big difference to how much vapers spend on e-liquids once VPD comes into effect. 

Stock Up Before October 1 

The easiest way vapers can protect themselves from the rising e-liquid prices that will come into effect on October 1, 2026, is to stock up on their favourite flavours before that date. In other words, before the price hike.

Buying before October 1, 2026, will save you £2.64 per 10ml of liquid you buy. You can save even more money by taking advantage of a multibuy deal, such as our 10 for £20 deal on 10ml bottles or 2 for £20 on 50ml shortfills.

Don’t leave it too late to stock up on your favourite flavours. As word gets out about the upcoming price increase, it’s likely that many vapers will take this option — securing yours early ensures you have enough in the cupboard by the time October rolls around.

With that said, while picking up extra bottles is an effective and recommended way to legally get around VPD, it’s important to be sensible. Most e-liquids only have a shelf life of around 1 - 2 years, so it’s advisable to only buy the quantity of liquids that you will realistically get through within that timeframe. 

Opt For Nicotine Salt E-Liquid

If you don’t currently use nicotine salt e-liquid in your vape, now could be the perfect time to consider making the switch.

The reason? Compared with standard nicotine vape juice, nicotine salt e-liquid delivers a stronger and faster nicotine hit, which results in significantly fewer puffs that use less liquid. Most vapers find that they consume significantly less vape juice when they switch to nicotine salt variants, sometimes as much as five times less — and that can have a big impact in the age of VPD. 

For example, a heavy vaper who consumes 10ml of standard nicotine juice a day might only require 2ml of nicotine salt liquid to get the same effect; that means that instead of paying £2.64 each day in tax, they’ll only pay around £0.53. 

Look at MTL Pod Kits

Direct-to-lung vaping devices are popular with experienced vapers, in part because of the massive smoke plumes that they produce.

But it’s worth keeping in mind that more smoke = more liquid, and it’s not uncommon for vapers to easily burn through 10ml - 20ml a day.

Switching to Mouth-to-lung pod kits can be a smart strategy for reducing liquid consumption. MTL devices have a much lower wattage than DTL devices, producing smaller vapor amounts, which means less liquid is consumed. They’re also designed to complement nicotine salt vape juice, which further compounds the savings.  

Looking for an MTL pod kit in preparation for the new 2026 vape tax? Check out our extensive collection of leading models by clicking here. 

The New 2026 Vape Tax: Our Final Thoughts

There’s no avoiding that the upcoming UK vape tax will have an impact, though you could say that it was inevitable. After many years of zero taxes on vaping devices, it was only a matter of time before the exchequer took action.

With plenty of time before VPD comes into full effect, now’s the time for UK vapers to take action by stocking up on their favourite flavours and switching to vaping devices/liquid types that are more economically sustainable.