The Vaping Products Duty (VPD) is a new tax for vaping products that it due to be introduced in October 2026. The duty is part of the Government’s aims to reduce the appeal of vaping for non-smokers and young people, by reducing affordability. The duty was confirmed as finalised in the recent 2025 budget.
Find out more about when and how the VPD will come in to play and what it might mean for you and for vaping business in general, in our handy guide.
What is the Vaping Products Duty (VPD)?
On 1 October 2026, there will be a new duty that applies to all e-liquids made, sold, imported and bought in the UK. The Government policy states that:
“The duty will apply to vaping liquid which contains nicotine and either or both glycerine and glycol or any liquid that is intended to be vapourised by a vape and is not a medical or tobacco product.”
The new excise will be applied at a flat rate of £2.20 per 10ml of vaping liquid, no matter how much nicotine the e-liquid contains. Throughout the process of introducing the duty, the need to ensure that vaping products remain accessible to smokers and current vapers was held in high importance, ensuring that vaping remains a more affordable alternative to smoking.
Who will the VPD impact?
The VPD will impact the UK vaping industry as a whole, changing pricing and duty for individuals, manufacturers and businesses.
How the VPD will impact vapers
- When the excise comes into play, cost will increase across e-liquid containing products, and this will have the biggest impact on consumers. This will be most noticeable for larger quantities of e-liquids like shortfill bottles, as the duty will be set at a single flat rate of £2.20 per 10ml on all vaping liquid
- It might be more difficult for vapers to buy specific products in stores, particularly when it comes to independent vape stores who may struggle to cope with rising costs
- There is also likely to be a change in the type of products available. For example, shortfill e-liquids in particular are likely to become obsolete due to the significant price increase they will be subject to
- Vapers may find that they need to switch to other products like refillable pod systems to be able to vape more efficiently and save money
Despite these increases in cost caused by the duty, vaping will remain a less expensive alternative to smoking. It is also important to remember that the duty applies only to products containing e-liquid like bottles of vape juice and prefilled pods, so the price of refillable vape kits, coils, and refillable pods will not increase.
How the VPD will affect vaping brands and manufacturers
- An increase in the excise cost may result in a drop in sales, with consumers purchasing less frequently to save money. This will result in a drop in income for brands and manufacturers and could also have a particularly big impact on independent vape stores
- Every stage of the vaping supply change will be affected, from manufacturers and packaging makers to importers and retailers
- Retailers will need to work to implement the changes and make sure they are reflected in the sales price. They will see an increase in the cost of buying products wholesale and will need to ensure all products have the appropriate duty stamp on packaging. This will mean extra work in adhering to new regulations across all products. It will take extra work to ensure compliance and professional vape shops will ensure that they are following all regulations
What products will be impacted by the VPD?
The VPD is a tax for all e-liquids, which means it will cover a wide range of items, including:
- All vaping liquids/e-liquids, regardless of nicotine content or the volume sold
- Prefilled pods will also be affected, as they come with the e-liquid already inside the pod, this is inclusive of both standard 2ml prefilled pods and larger refills found with big puff vapes
VPD calculator explained:
To work out how the VPD will affect the price of e-liquids going forward, we have put together a handy guide. Essentially, Vaping Products Duty will be set at a single flat rate of £2.20 for a 10ml bottle on all vaping liquid.
This duty is £2.20 per 10ml and is a flat rate regardless of nicotine strength. This means that shortfills will have a larger increase as they contain more than 10ml of e-liquid. It will also be applied to 2ml pods and any refills, with the cost of the duty calculated depending on the volume of e-liquid in the pods and refills. VAT will then be applied after the Vaping Products Duty.
Why is the VPD being put in place?
The UK Government is putting the VPD in place as a way to balance the regulation of vaping products and their goal of reducing smoking-related illnesses. They hope that the duty will discourage non-smokers from beginning vaping. It is also hoped that the new excise and regulations will help to combat illicit products.
According to the Government’s policy document, one of the main motivations behind the duty is to make vaping products less accessible to minors. There is also the possibility that the money raised by the duty could be used as funding for enforcement by agencies like Trading Standards. How the money will be used is unconfirmed. We support measures to ensure that all vape shops comply to regulations and any moves to help stamp out illicit vape traders.
Conclusion
Even with the upcoming duty, the Government intend to ensure that vaping remains more cost-effective than smoking. Research shows that vaping is an effective tool in a smoking cessation journey, making it essential that smokers and current vapers are still able to easily access vaping products. Find out more in our guide to the ways vaping can help smokers quit.
Here at Evapo, we will be monitoring the VPD timeline going forward, to ensure that we can share up-to-date information with our readers while making sure that our shops remain fully compliant.
Sources:
Gov.uk 28/11/2025
Gov.uk – 26/11/25
Gov.uk – 26/11/25
Gov.uk – 12/09/26
Cochrane.org – 17/11/2022
