Correct as at August 2026. HMRC guidance on this is still being updated — check GOV.UK for the latest.
On 1 October 2026, a new tax called the Vaping Products Duty (VPD) comes into force across the United Kingdom. If you vape — particularly if you use shortfills, longfills, or nic shots — this will affect what you pay. This post explains exactly how it works, what it will cost, and what you can do about it.
What is the Vaping Products Duty?
The VPD is a new UK excise duty introduced under the Finance Act 2026 (Part 4, sections 115–141), with secondary legislation under SI 2026/331. It applies from 1 October 2026 at a single flat rate of £2.20 per 10ml of vaping liquid — or 22p per millilitre.
Because VAT is charged on top of the duty-inclusive price (as it is with alcohol and tobacco), the real cost landing on every 10ml is £2.64. The extra 44p is VAT on the duty itself.
The rate is the same regardless of nicotine strength. A 0mg shortfill and a 20mg nic salt pay exactly the same duty per millilitre. Nicotine content is irrelevant — only volume counts.
What is taxed — and what isn't
Charged at £2.20 per 10ml:
- 10ml e-liquids — every nicotine strength, including 0mg
- Shortfills and longfills
- Nicotine shots
- Prefilled pods and prefilled devices (charged on the liquid volume inside)
- DIY bases, PG, VG and flavour concentrates intended for vaping
Not in scope:
- Devices, mods, tanks, coils, empty pods, batteries and chargers — these remain subject to 20% VAT only
- MHRA-licensed medicinal products
- Tobacco products (separately taxed)
HMRC has confirmed there are effectively no exemptions beyond those required by law, such as supplies to diplomatic missions.
Who pays the duty — and when does it reach the shelf?
The duty is charged at the point of manufacture or import — not at the till. UK manufacturers pay at the point of manufacture, unless the goods go straight into duty suspension. Importers pay via the customs declaration on release. Where goods sit in duty suspension, duty falls due when they leave it.
Retailers do not register for or pay Vaping Products Duty. HMRC guidance is explicit: by the time stock reaches a shop, the duty is already inside the wholesale price. Every compliant supplier in the UK pays the same amount, so no legitimate retailer can undercut another on the duty itself.
What it actually costs — by bottle size
The duty scales with total liquid volume, not nicotine content. A simple rule: add roughly £2.64 to the shelf price of every 10ml of liquid you buy.
- 2ml prefilled pod — £0.44 duty / £0.53 with VAT
- 10ml bottle (any strength, including 0mg) — £2.20 duty / £2.64 with VAT
- 50ml shortfill + 1 × 10ml nic shot (60ml total) — £13.20 duty / £15.84 with VAT
- 100ml shortfill + 2 × 10ml nic shots (120ml total) — £26.40 duty / £31.68 with VAT
The shortfill problem — the part most coverage misses
This is where the duty hits hardest, and it is worth understanding clearly.
Shortfills exist because TPD rules cap nicotine-containing bottles at 10ml. Selling a large 0mg bottle alongside a small nic shot was the legal workaround — and it became the format of choice for committed adult vapers. It generates less packaging waste, has less youth appeal than small prefilled pods, and offers the best value per millilitre.
Under VPD, that format takes by far the heaviest hit. A 100ml shortfill with two nic shots carries £31.68 in duty and VAT. A 2ml prefilled pod carries 53p. The duty taxes volume, not nicotine, and not risk.
Nic shots are not exempt. A 10ml nic shot — whether 18mg or 20mg — is 10ml of vaping liquid and pays the full £2.20 duty (£2.64 with VAT). There is no reduced rate for components, small volumes, or high strengths. The Finance Act closes the obvious loophole directly: section 116(2)(a) provides that a liquid counts as intended for vaping even if the consumer has to mix it with something else first.
Good news for mixers: combining a duty-paid shortfill with a duty-paid nic shot is not manufacturing and requires no HMRC approval. Customers can keep mixing at home; shops can keep mixing at the counter. Both components simply have to be duty-paid.
Important warning for DIY customers: mixing non-duty-paid liquids — buying untaxed base and nicotine to blend — becomes manufacturing from 1 October 2026 and requires HMRC approval, even where it is not for commercial sale. DIY mixing from untaxed inputs is effectively over.
Why the government is doing this
HMRC's stated objective is to reduce 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. Revenue is an openly stated second motive — the OBR-certified forecast projects the duty generating £135m, then £400m, £465m, £530m and £565m over the five years following introduction. HMRC estimates around 5.1 million people who vape will be affected by higher prices.
To protect the incentive to switch away from cigarettes, tobacco duty rises by a matching £2.20 per 100 cigarettes and £2.20 per 50g of other tobacco on the same date.
How the UK compares internationally
The UK rate is substantial but not the highest in Europe:
- Ireland — €5.00 per 10ml (in force 1 November 2025)
- Germany — €3.20 per 10ml (in force 1 January 2026)
- United Kingdom — £2.20 per 10ml (in force 1 October 2026)
What is genuinely unusual about the UK approach is the accompanying Vaping Duty Stamps scheme — a physical security stamp required on retail packaging — which goes further than most comparable countries.
Key dates
- 1 October 2026 — Duty starts. New stock must carry a duty stamp.
- 31 March 2027 — Last day shops can sell unstamped stock bought before October.
- 1 April 2027 — Selling unstamped vaping products becomes an offence. Unstamped stock may be seized.
Between October 2026 and March 2027 there will be a transition period where stamped and unstamped stock sit side by side at different prices. Customers will see uneven pricing across shops during this window. This is normal and temporary.
What this means for our shop — and for you
Our 100ml clearance
A 100ml shortfill plus two nic shots picks up £31.68 in duty and VAT on 1 October. That is the single largest price jump of any product format, and it is the reason we are clearing our 100ml range now at pre-duty prices. After October, neither we nor any other legitimate retailer will be able to sell it at anything close to today's price. Browse our current clearance stock here.
We're using the proceeds to stock up on 10ml liquids and pod kits before 1 October, so we can keep pre-duty prices on the everyday stuff for as long as our stock lasts.
Why our pre-duty stock stays cheaper until 31 March 2027
Stock bought before 1 October carries no duty. Shops can legally sell that stock until 31 March 2027. So for roughly six months there will be two prices in the market: duty-paid stock at the new price, and pre-duty stock at the old one. Any stock we bought before October, we can sell at pre-duty prices for as long as it lasts. When it runs out, it runs out — there is no way to restock at the old price, for us or anyone.
The duty is very hard on small independent retailers, and we are reviewing our range as a result. We'll keep you posted on what we're stocking as the changes come in.
What you should actually do
- Prices rise on 1 October. There is no phase-in.
- The bigger the bottle, the bigger the jump. Shortfill and DIY users are hit hardest; prefilled pod users least.
- Buying ahead is legal and sensible if it is liquid you would use anyway. E-liquid keeps well in a cool, dark place away from sunlight.
- Do not overbuy beyond what you will realistically use. Nicotine strength and flavour preferences change.
- Prices will look inconsistent across shops between October and March depending on whether stock is pre-duty or duty-paid. That is normal and temporary, not a sign anyone is profiteering.
Sources
- Finance Act 2026, Part 4 — legislation.gov.uk/ukpga/2026/11/part/4
- HMRC — Introduction of Vaping Products Duty from 1 October 2026 (policy paper, 26 November 2025)
- HMRC — Prepare for Vaping Products Duty and the Vaping Duty Stamps Scheme
- HMRC — How to pay Vaping Products Duty
- HMRC — Check if you're impacted by Vaping Products Duty and the Vaping Duty Stamps Scheme
- Business Companion — Vaping Products Duty: what retailers need to know
- Independent British Vape Trade Association — ibvta.org.uk