December 26, 2025 Vapes Direct

Vape Tax Vs VAT: What's The Difference?

Vape prices in the UK are changing, and many vapers are asking why. Headlines about new duties, rising costs, and upcoming regulations have made one question increasingly common: vape tax vs VAT, what’s the difference? While VAT has always applied to vaping products, a new vape tax is set to reshape how e-liquids are priced across the UK. Understanding how these two taxes work, and how they affect what you pay, is essential for making informed vaping choices in the years ahead.

What Is VAT on Vapes in the UK?

VAT is a standard 20 per cent tax applied to most goods and services in the UK, including all vaping products.

VAT on vapes in the UK already applies to devices, e-liquids, pods, coils, and accessories. This tax is added throughout the supply chain and is included in the final retail price you see online or in-store. According to HMRC, VAT helps fund public services and is not specific to vaping.

Do Vapes Have VAT in the UK?

Yes, all vaping products sold legally in the UK are subject to VAT.

There are no VAT exemptions for vape kits or e-liquids. Whether you buy a beginner pod kit or a premium refillable device, VAT is already built into the price.

How Much VAT Do You Pay on Vapes in the UK?

You pay 20 per cent VAT on the final price of vape products.

For example, if a vape kit costs £30 before VAT, £6 of that price is VAT. This applies equally across online vape stores and physical retailers.

What Is the Vape Tax in the UK?

The vape tax in the UK is a new excise duty on e-liquid that is planned to come into force from October 2026.

Unlike VAT, this tax is charged at a flat rate of 22p per millilitre of e-liquid, regardless of nicotine strength. It applies to nic salts, shortfills, and even zero-nicotine e-liquids.

Why Is the UK Introducing a Vape Tax?

The UK government aims to discourage youth vaping while generating public revenue.

Government briefings have compared the vape tax to duties already applied to alcohol and tobacco. The intention is to regulate consumption rather than ban vaping outright, while still recognising its role as a smoking alternative.

Vape Tax vs VAT: How Are They Different?

The difference between vape tax and VAT is that VAT is a general sales tax, while vape tax is a product-specific duty.

VAT is charged as a percentage of the total price and already exists on all vape products. The vape tax is charged per millilitre of e-liquid and is applied once before VAT is added. This means the two taxes will work together rather than replace each other.

How Vaping Taxes Affect Vape Prices in the UK

Vaping taxes increase the final retail cost, especially for larger bottles of e-liquid.

A clear vape price breakdown in the UK shows that shortfills will be most affected due to their higher volume. For example, a 50 ml shortfill could see an additional £11 added before VAT is applied. Devices are not directly affected by vape duty, but VAT still applies as normal.

Choosing the Right Vape Devices as Prices Rise

Refillable and long-lasting devices help reduce ongoing costs under UK vape taxation rules.

The Uwell Caliburn G4 Pro Koko Pod Kit offers a powerful 2000mAh battery and efficient pods, helping reduce frequent charging and coil changes. The SMOK Novo Classy Pod Kit balances adjustable power with pod flexibility, making it suitable for both MTL and RDL vaping without excessive e-liquid use.

For vapers who want versatility, the Voopoo Drag S3 Kit supports MTL, RDTL, and DTL styles with a large 3000 mAh battery designed for all-day use. If portability matters most, the Aspire Gotek X III Pod Vape Kit delivers compact performance with refillable pods, helping keep costs manageable as e-liquid prices rise.

Final Thoughts on Vape Tax vs VAT in the UK

Understanding vaping taxes explained clearly helps UK vapers make informed choices as prices change.

VAT on vapes in the UK is already part of everyday pricing, while the upcoming vape tax will specifically affect e-liquid costs from 2026. Choosing efficient, refillable devices and understanding how UK vape taxation rules work can help reduce long-term spending.

Shop reliable refillable vape kits and compliant devices at Vapes Direct to stay prepared for future price changes while enjoying a consistent vaping experience.

FAQs

Do vapes have VAT in the UK?

Yes, all vape products sold legally are subject to VAT on vapes in the UK at a standard rate of 20 per cent, including devices, pods, and e-liquids.

What is the difference between vape tax and VAT?

The difference between vape tax and VAT is that VAT is a general sales tax applied to most goods, while vape tax is a specific duty charged per millilitre of e-liquid in the UK.

When will the vape tax in the UK start?

The vape tax in the UK is scheduled to come into effect in October 2026 and will apply to all e-liquids, including nicotine and zero-nicotine products.

Does the vape tax apply to zero-nicotine e-liquids?

Yes, under current UK vape taxation rules, the vape tax applies to all e-liquids regardless of nicotine content, including zero-nicotine vape liquids.

How will vaping taxes affect vape prices in the UK?

Vaping taxes explained simply show that e-liquid prices will rise due to the vape tax, especially for larger bottles, while devices will continue to be affected only by VAT.