The United Kingdom will introduce an excise duty on vaping products (Vaping Products Duty – VPD) starting from 1 October 2026, set at £2.20 (approximately €2.55) per 10 ml of e-cigarette liquid. Taking into account the 20% VAT, the potential increase in the retail price could reach £2.64 (approximately €3.06) per 10 ml.
The measure will apply to both nicotine-containing liquids and nicotine-free liquids and, according to HM Revenue and Customs (HMRC), it is expected to affect approximately 5.1 million consumers. The projected tax revenue amounts to £135 million (approximately €156.3 million) in 2026-2027, with an estimated increase up to £565 million (approximately €654.2 million) by 2030-2031.
Manufacturers and importers will also be required to apply fiscal stamps (Vaping Duty Stamps) on packaging intended for final consumers starting from 1 October 2026. These fiscal stamps may only be obtained from HMRC-approved operators; applications for authorization will be assessed from 1 April 2026 and will be necessary in order to manufacture and import products into the United Kingdom.
The government’s stated primary objective is to limit the spread of vaping among young people and non-smokers, while preserving the price differential compared to combustible tobacco products, thereby maintaining e-cigarettes as a less harmful alternative to traditional smoking.
In addition, the use of fiscal stamps should allow rapid enforcement checks by the authorities in order to block the introduction of illicit products and tackle the black market, an issue that has become particularly significant in the country in recent months. In this regard, enforcement activities and penalties for offenders will also be strengthened, including seizures, administrative fines, and criminal proceedings against operators who violate the rules.
It should also be noted that, starting from 1 October 2026, a one-off increase in tobacco excise duty will enter into force, amounting to £2.20 (approximately €2.55) per 100 cigarettes and £2.20 (approximately €2.55) per 50 g of other tobacco products, in order to maintain the price differential between smoking and vaping.
