Why are vapes starting to cost more? The vape duty explained

With the Vaping Products Duty, or VPD, having come into effect on the 1st of October 2026, we will start to see the cost of many vapes, e-liquids and everyday vaping essentials going up – although the exact amount will vary depending on a few different things.

This new duty, often referred to as the vape tax, will introduce a price increase of £2.64, including VAT, per 10ml of e-liquid. This will apply whether the vape juice has nicotine or not and is set to have a knock-on effect on the price of vapes.

In this guide, we talk about why many vapes are going to cost more in the future and explain the various ways and help you through the change.

Why are vape prices increasing in the UK?
The rise in vape prices in the UK is caused by the new Vaping Products Duty. The new tax has been introduced to reduce the affordability of vaping products and therefore support the Government’s aims to reduce the appeal of vaping to non-smokers and young people.

Not all vape related products will be affected, as products that do not contain or come with any e-liquid will not be subject to the duty. Also, there is a good chance that not all prices will change at the same time. Instead, there is more likely to be a gradual change over the next six months, as retailers sell off their old stock which was produced before October 1st so does not have duty applied.

What is the UK Vaping Products Duty?
The UK Vaping Products Duty is a new levy that will apply a price increase of £2.20 plus VAT to all e-liquids, whether they contain nicotine or not. This will be applied to all kinds of e-liquids, whether they are contained in prefilled pods or sold in shortfills. The new tax and its VAT will impact both manufacturers and vapers, with the costs changing the price of many vaping products in the UK.

When will the UK vape duty come into play?
The new vaping stamp duty commenced on the 1st of October 2026, and you may see some prices change immediately. However, it is likely that many prices will initially stay stable or only change gradually, as manufacturers and retailers have a six-month period to sell existing stock at its original price. That is why many vapers are choosing to stock up now on their favourite e-liquids and vaping products.

Rather than an abrupt shift in pricing at the start of October, we are seeing a gradual increase as new stamped stock comes into circulation, and older pre-duty stock is sold through. That means there is no real way of knowing when any one individual product is likely to go up in price and many buyers are choosing to stock up now, when the price is stable and before the duty comes into play.

Which vape products will be covered by the vape duty?
The new vape duty covers a wide range of vaping products, because it is the e-liquid that is used in all kinds of vapes that will be taxed. So, the extra cost will be applied to e-liquid and vape juice that is sold in bottles, but also prefilled pods as well as vapes that are sold with prefilled pods included. The duty will be applied whether the e-liquid has nicotine in it or not.

There are some vaping products and accessories that will not be affected, however. This includes refillable vape kits,  coils, refillable pods, batteries and any other vaping products that do not come with e-liquid.

How to calculate the VPD:
The VPD applies a flat rate of £2.20 to each 10ml of e-liquid, giving an idea of how much a product is likely to increase by based on how much e-liquid it contains.

The only thing that makes it a little more complicated is adding on the extra 20% of tax, which is applied to the flat rate. This means that for each 10ml of e-liquid, you are actually looking at a price increase of at least £2.64.

You can get an idea of the minimum new prices below.

Will vape prices rise by exactly £2.20 per 10ml?
Vape prices will not rise by exactly £2.20 per 10ml, even though this is the flat rate applied. This is because VAT will also be charged, and that will affect the total price paid and will vary between products.

It is a good idea to consider the £2.20 tax plus VAT as the minimum expected price increase, because sellers will also need to factor in some other additional expenses, such as the cost of adding vaping duty stamps to their products as well as lower stock availability from suppliers overall.

What are vaping duty stamps and how will they work?
Vaping duty stamps are secure fiscal labels introduced by the UK government to confirm that the new Vaping Products Duty (£2.20 per 10ml of liquid) has been paid.

The stamp will be used to seal products, so you will start to see them on your new bottles of e-liquid or on prefilled pod or vape packaging after the new levy comes in. These new seals will not only prove that the tax has been paid, but they can add an extra layer of protection for buyers. A product with a broken seal should not be sold or available in any legitimate vape shop.

Can retailers sell unstamped vape products after October 2026?
Yes, there will be a period of time when retailers can continue to sell pre-duty vape products after the 1st of October 2026. This is to allow them to sell through any stock they have before the new duty comes in. However, there is only a six-month grace period which lasts until March 31st, 2027. Any new inventory acquired after the 1st of October must legally feature a vaping duty stamp and you should see this reflected in the vaping products you buy.

Conclusion
Making the switch from smoking can offer some big benefits.

FAQ

Does the vape duty apply to nicotine-free e-liquid?
Yes, the new vape duty applies to nicotine-free e-liquid as well as to those containing nicotine. This means that all vape juices and products that include vape juice at the point of sale will be affected.

Will cigarettes also become more expensive when the vaping products duty starts?
Yes, tobacco duty rates increased from October 1st, 2026. These increases will see an additional £2.20 applied per 100 cigarettes and £2.20 per 50g on all other tobacco products.

Why is it important to buy compliant vape products?
It is important to buy compliant vape products because that is the only way to know that the things you are purchasing are adhering to all of the important regulations that apply to vaping products in the UK. Vape products that are not compliant may also be flouting other important regulations, including health and safety related rules.

How much vape duty will be charged on a 2ml vape pod?
The new vape stamp duty will be charged at £2.20 per 10ml, or 22p per ml. This means that a 2ml pod will cost at least an additional 44p plus 20% vat, which will be approximately another 9p.

Was there previously a tax on vapes in the UK?
There was no excise duty levied on vaping products before October 1st, 2026. The introduction of the vaping stamp duty is a new excise duty on vaping products in the UK. However, vaping products have always been subject to standard VAT addition.