UK Vaping Products Duty 2026: What Retailers Must Do Now Before the Vape Tax Hits

From 1 October 2026, the UK Government will introduce a brand-new excise system on all vape liquids — the Vaping Products Duty, commonly referred to as the Vape Tax 2026. This tax will apply to every millilitre of vaping liquid sold in the UK, including nicotine-free shortfills, prefilled pods, and disposable-style pod kits.

Alongside the duty itself, a mandatory vaping duty stamp scheme will roll out, similar to alcohol and tobacco stamps. Every retail unit entering the UK market after October 2026 must carry a verified HMRC-issued stamp showing the duty has been paid. This change affects vape shops, convenience retailers, wholesalers, and distributors in a major way — especially in how they price, stock, and prepare their inventory for the transition.

This blog explains everything retailers need to know: duty costs, timeline, price impact, compliance rules, and how to prepare your store or wholesale operation before the critical deadlines arrive.

Why the Vape Tax Matters — A Quick Introduction for Retailers

From October 2026, the Government will charge £2.20 per 10 ml (22p per ml) of liquid in any vaping product. This applies no matter the nicotine strength — even 0 mg shortfills are affected. This flat rate means small-format items see only a slight price increase, while larger pods and shortfills experience a much heavier rise.

In practical terms, a 2 ml vape pod will only carry around £0.44 duty + VAT, while a 12 ml device will jump to £2.64 duty + VAT per unit. That difference is substantial, and retailers will see major shifts in customer buying habits as a result.

Clear Examples: How Prices Will Change From October 2026

To understand the real-world pricing impact, here are two everyday examples:

• Standard 2 ml disposables (SKE Crystal, Lost Mary BM600):
  Around £0.44 duty + VAT per device, adding roughly £4.40 per box of 10.

• Larger 12 ml devices (Lost Mary BM6000, Hayati Pro Max 6K):
  Around £2.64 duty + VAT per device, adding roughly £13.20 per box of 5.

These numbers show how strongly volume affects pricing under the new duty rules. Small devices face modest increases; large pods are heavily impacted.

What Is the Vaping Products Duty?

The Vaping Products Duty is a flat, volume-based excise tax applied to all liquids used in vaping devices. It covers:

• Prefilled pods

• Disposable-style pod kits

• Bottled e-liquids

• Nicotine-free shortfills

• Refill liquids of any flavour or strength

Crucially, all affected products must carry an HMRC-approved duty stamp from 1 October 2026 onward. These stamps confirm tax has been paid, add traceability to supply chains, and create a compliance requirement similar to tobacco packaging.

Any retailer selling unstamped products after 1 April 2027 will risk seizure, penalties, and enforcement action.

Key Dates Retailers Must Track

Understanding the timeline is essential for inventory planning:

1 April 2026

Applications open for manufacturers, importers, and warehousekeepers to register for the duty and duty stamps scheme.

1 October 2026

The Vaping Products Duty becomes enforceable. New stock entering retail must have duty stamps.

1 October 2026 – 31 March 2027

Transitional sell-through period. Retailers may sell any unstamped stock already in circulation before 1 October 2026.

1 April 2027

Unstamped items can no longer be legally stored, sold, or displayed.
This is the final cut-off point. After this date, noncompliant stock is illegal.

How the Duty Affects Different Product Sizes

Because the new tax is based solely on volume — 22p per ml — some format types will be hit much harder than others.

Small Prefilled Pods (~2 ml)

Duty impact: Low
A ~2 ml pod only adds roughly £0.44 + VAT, which consumers will see as a mild change. Retailers will still experience good turnover here, and many buyers may shift from larger devices to these small pod kits.

Large Prefilled Pods (10–12 ml)

Duty impact: High
A 12 ml pod now adds £2.64 + VAT, significantly raising the retail shelf price. Expect increased price sensitivity, slower turnover, and more substitution towards smaller pods.

Shortfills (50–100 ml)

Duty impact: Extremely high
A 100 ml shortfill will incur £22 in duty + VAT, meaning prices will rise sharply. Many retailers anticipate a drop in shortfill sales unless consumer expectations are proactively managed.

What This Means for Vape Shops and Wholesalers

The Vape Tax 2026 fundamentally changes how inventory must be handled, priced, and communicated. Retailers will need to adjust operations in several ways:

Compliance and Supply Chain Control

From October 2026 onward, only duty-paid and stamped units can legally enter retail. Retailers will need to check incoming deliveries more carefully, ensuring all stamps are present, intact, and valid. Stamps will include security features and may include digital trace data to help HMRC monitor movement.

Retailers themselves do not register for the scheme, but they must be vigilant when accepting stock — any unstamped units after April 2027 are unlawful.

Inventory and Cashflow Implications

Retailers should begin segmenting their stock throughout 2025–2026, identifying which items are unstamped and ensuring they sell through before the March 2027 deadline.
It is recommended to avoid over-ordering large pod formats or long-dated shortfills unless you have guaranteed high turnover.

Given the lower duty impact on smaller pods, many stores may refocus their product mix toward 2 ml prefilled devices and 10 ml nic salts, which meet customer needs with minimal tax burden.

Pricing Adjustments

Shelf prices will need updating to reflect both duty and VAT. For smaller pods, competitive pricing remains achievable. For larger pods and shortfills, retailers may need to explain the government duty increase clearly to consumers.

Tiered pricing structures — Good / Better / Best — will help customers navigate new price ranges without discouraging purchases.

Staff Training and Customer Communication

Front-line staff should be able to explain the duty in simple language:
“The government now adds 22p per ml to all vape liquids, and every product must carry a duty stamp.”
Clear signage in stores can reduce confusion and reassure customers that price increases are due to legislation, not retailer mark-ups.

Where Retailers Should Focus Their Range Post-2026

As pricing shifts, consumer behaviour will naturally adjust. Retailers should prepare by strengthening stock in the segments least affected by the duty:

• 2 ml prefilled pods (SKE Bar, Lost Mary BM600) — strongest value after the tax

• Nic salts (10 ml) — efficient nicotine delivery without large ml volumes

• Large pods — still viable but require careful pricing and customer positioning

The key is efficiency: customers may prefer formats that deliver higher satisfaction with fewer millilitres, keeping consumption affordable.

Understanding the Duty Stamp System

The new duty stamps will be high-security labels, similar in style to tobacco stamps, measuring roughly 15–18 mm × 42–44 mm. These stamps will be applied in a way that prevents removal and reuse.
Manufacturers and importers must scan or log each stamp as it moves through the supply chain, confirming to HMRC that the product is legitimate and tax-paid.

Retailers will simply need to ensure every unit they sell carries a genuine stamp.

Retailer Action Plan — Steps to Take Now

Here is the simplified action plan every retailer should follow:

• Confirm suppliers will provide duty-paid, stamped stock from October 2026.

• Label and sell-through any existing unstamped inventory before March 2027.

• Update pricing systems (EPOS and shelf labels) to reflect the 22p per ml + VAT uplift.

• Train staff on stamp recognition and how to explain the new duty.

• Shift stock strategy toward smaller pods and nic salts to maintain healthy turnover.

Frequently Asked Questions (FAQ)

What is the new vape duty rate?
£2.20 per 10 ml, which equals 22p per ml, regardless of nicotine strength.

Will small pods increase in price?
Yes, but only slightly — around £0.44 + VAT per unit.

What about large 12 ml pods?
These will see a far higher increase — around £2.64 + VAT per unit.

When must stamps be visible on products?
All new stock after 1 October 2026 must be stamped. Unstamped stock cannot be sold after 31 March 2027.

Do retailers need to register with HMRC?
No — only manufacturers, importers, and warehouses register. Retailers must simply ensure they only stock stamped, duty-paid items.

Final Takeaways for Retailers

The Vape Tax 2026 will reshape the UK vape market. Retailers who prepare early — by adjusting their stock mix, managing cashflow, and communicating clearly with customers — will remain competitive and profitable despite the changes.

• Duty rate: 22p per ml

• Small 2 ml pods: minimal impact

• Large pods & shortfills: heavy increases

• Sell all unstamped stock before 31 March 2027

• Future focus: 2 ml pods and nic salt formats

Preparing now will protect margins, maintain customer trust, and keep your store compliant when the new regulations arrive.