Vape Tax
As many of you may be aware, the Vaping Products Duty is set to take effect on October 1st, 2026. This is a significant change aimed at regulating the industry and reducing youth uptake.
The Governments’ new duty and stamp is designed to protect the market by ensuring every vape sold in the UK is authentic and contributes its fair share in tax. It will also bring vaping in line with tobacco and alcohol rules.
Here is what the tax will mean for you:
1. Direct Price Increases
The tax is a flat rate of £2.20 per 10ml of liquid. Because VAT (20%) is applied on top of the duty, the total cost increase is expected to be approximately £2.64 per 10ml.
10ml Bottles: A bottle currently priced at £3.99 is expected to rise to around £6.63.
Shortfills (50ml/100ml): These will be hit hardest. A 100ml bottle could see its price increase by over £26, potentially tripling the cost of ‘bulk-buy’ options.
Many industry experts predict that 100ml, and potentially 50ml bottles, may disappear from the market because the upfront cost (e.g., £24-£40 per bottle, even before Nic shots are required) will be too high for most casual shoppers.
Pre-filled Pods: Since these usually contain 2ml of liquid, the tax increase will be smaller – roughly 53p per pod. Please bear in mind that if the kit comes with an added 10ml refill pod, this will be taxed at the £2.20 +VAT price.
2. Nicotine Strength is Irrelevant
Earlier discussions about taxing higher nicotine strengths at higher rates were scrapped. The confirmed plan is a flat-rate tax regardless of strength.
Whether you buy 0mg (nicotine free), 3mg, or 20mg salts, the tax remains the same: 22p per ml + VAT.
Nicotine shots will also be taxed at this same rate per bottle.
3. New “Duty Stamps” and Packaging
To ensure all products on the shelf are legal and taxed, the government is introducing a Vaping Duty Stamp Scheme.
All legal e-liquids will eventually require an official tax stamp on the packaging or bottle (It has yet to be confirmed whether the tax stamp can go directly onto the bottle).
These small tamper-proof labels will indicate the correct tax has been paid. They will seal the box or bottle so it cannot be opened without damage to the tax stamp label. They will confirm that the product has been checked and approved by HMRC. The stamp will eventually include a Bar Code or QR code to help trace products through the supply chain.
Implementation Timeline: While the tax begins in October 2026, there is a grace period until April 1st, 2027, after which it will be illegal for shops to sell any unstamped stock.
4. Hardware and Devices
Devices are not taxed: The duty applies only to liquid. You should not see a tax-related price hike on vape kits, mods, tanks/pods, or coils.
Starter Kits: If a kit comes with a 10ml bottle included in the box, that specific bottle will attract the tax, which may slightly increase the “bundle” price.
5. Smoking vs. Vaping Gap
To ensure vaping remains a cheaper alternative to smoking, the government is introducing a one-off increase in tobacco duty at the same time (October 2026). This is intended to maintain the price difference and encourage smokers to continue switching to vaping.
6. Other Changes
E-mails
It has been confirmed that it will be against regulations to send e-mails to customers other than to confirm orders and to reply to a specific customer query. No promotional e-mails are allowed, including discounted prices and percentage off deals.
Bundle Deals
When the new tax arrives in October multi-buy deals will look very different. Because every 10ml bottle will carry a £2.20 tax + VAT, the “floor price” for a multi-buy will rise significantly.
A “3 for £10” deal currently includes about £1.67 of VAT. From October, that same deal would have to include £7.92 in tax alone (£2.64 per bottle).
As a result, 3 bottles will likely cost a minimum of £15 - £18, even with a bulk discount.
For this reason, we are working towards a “single bottle pricing structure” for ease of customer use and to simplify the process. At this stage, we cannot say what the retail price will be, as we are still uncertain what the final costs will be. More clarification is needed from the Government but we will do our outmost to keep prices as low as possible.
In Store Loyalty Card Scheme
Due to the increased cost in paying the government £2.64 for each 10ml bottle before we have even sold it (rendering the scheme unviable), our in-store Loyalty Card scheme will cease no later than end of September. Make sure to claim any free bottles before this deadline as legally we can no longer honour any Loyalty card from October 1st.
7. In Summary
From April 2027, every vape sold in the UK must feature a duty stamp to prove it is legal and taxed. Expect stricter enforcement and price increases as a result of these new compliance standards.
To ensure product safety and compliance, purchase exclusively from reputable UK vendors such as No-Match. Always verify the presence of a vaping duty stamp and remain cautious of prices that seem unrealistically low, as these often indicate illicit goods.
