What the 2026 UK Vape Tax Means for Vapers and Businesses
October 2026 is just around the corner and with it comes the introduction of the vape tax, a financial storm for the vaping industry and its users. Dubbed the second most monumental event in vaping since the Tobacco Products Directive of 2017, this new law will reshape pricing, products and buying habits. Buckle up, it is about to get cloudy in here.
When the vape tax begins
The duty goes live on 1 October 2026. From that date every bottle of e liquid will carry an extra charge calculated per millilitre. Vaping will not only be about flavour and satisfaction, it will also involve quick mental maths to work out your cost per ml.
The confirmed rate in simple numbers
The new duty is set at £2.20 per 10ml. That equals 22p per ml. A 100ml bottle contains ten lots of 10ml, so duty adds £22 to a 100ml bottle before any retailer margin or VAT. If a shortfill is £10 today, from October 2026 that same bottle could sit north of £32 once duty is applied then normal commercial mark ups and VAT flow through the chain.
Why this matters for everyday vapers
Prices will rise across the board. Many will shift buying habits, some will reduce usage and others will look for formats that stretch budgets further. Expect a stronger focus on value ranges, multi buys and larger bottles where possible. Expect more attention on how to mix efficiently and store well so nothing is wasted.
What Towerstone Accountants are seeing
Speaking with Towerstone Accountants who represent numerous vaping companies in the UK market, they told us the run up to October is likely to be a wild ride. Pre duty, turnover should spike as vapers stock up. Post duty, footfall may soften while customers adjust to the new price reality and explore products designed to lessen the impact.
The technical headache for brands and shops
Behind the scenes, companies are reworking price files, labels, barcodes and point of sale systems. They must map SKUs to duty bands, calculate margin with duty inside the cost base and retrain teams. Distributors will adjust case prices and retailers will reset shelves and promo plans. None of this is free so some of that admin cost will find its way into final pricing.
Shortfills today, longfills tomorrow
Shortfill e liquids were the breakout format after the TPD limited nicotine bottles to 10ml. Bigger nicotine free bottles with space for nic shots gave vapers value and flexibility. They still dominate because they make financial sense and keep flavour consistent for thousands of puffs. With duty arriving, attention turns to longfills as a possible next evolution.
How a longfill works
A common longfill is a larger bottle that contains a measured amount of concentrated flavour, often 30ml in a 60ml or 120ml bottle. You add PG, VG and nic shots to reach final volume and strength. Many like longfills because the flavour is strong, the finished juice is fresh and you only carry one compact bottle during mixing.
The longfill maths your customers will do
Using your earlier example for a 60ml outcome, a longfill setup at today’s prices might look like £5.99 for 30ml concentrate plus £3.00 for three nic shots. Your worked example used £6.60 in tax to reach £15.59 total. That saving looks compelling next to £28.20 for six taxed 10ml bottles. The key caveat is scope. The new duty is volume based. If HMRC treats the flavour base as a vaping liquid, tax would apply to the full finished volume, not just the nic shots. If a flavour base is classed outside scope, only the taxed components would attract duty. Until final guidance lands for concentrates and mix kits, retailers should model both scenarios so margins do not get caught out.
Will longfills be taxed
Plan for prudence. If the flavour base is sold and marketed for vaping, duty is likely to apply. If it is a general flavour concentrate not presented as a vaping liquid, treatment may differ. Brands should ensure product descriptions, labels, safety data and channels align with their intended classification. Retailers should keep documentation on file so audits go smoothly.
How the tax affects 10ml bottles and nic salts
Small bottles face the same rate per ml. Four 10ml nic salts at £10 today become £10 plus £8.80 in duty from October for the same 40ml before VAT and margin changes. That narrows the value gap with longfills, but shortfills and longfills should still win on price per ml.
What shops can do now
Audit your range. Keep strong sellers and delete slow movers to simplify compliance. Pre build price ladders that show customers clear good, better, best options at the new duty in price points. Create bundles that help customers move to larger formats, include measured nic shots and provide a simple mixing card in the parcel. Train teams to explain the maths in seconds.
What brands can do now
Tidy up packaging, SDS sets and notifications. Add on pack guides for mixing and storage so customers waste less and come back happier. Offer clear charts for nic shots per bottle size. Develop flavour bases that hold up when mixed to common strengths so repeat purchase stays high after duty.
How vapers can prepare
If budget allows, buy sensibly before October. Move to formats that stretch further. Learn the basics of mixing so you do not spill or over flavour. Store bottles in a cool dark place so they last. Keep an eye on multi buys where the effective price per ml drops without forcing you to hoard.
If you want bigger bottles that deliver value before duty day, browse our full 100ml vape juice collection which includes a wide range of flavours suited to sub ohm kits and everyday use.
Expect marketing to change
Price points will move so the value story will shift from simple cheapness to cost per ml, consistency and waste reduction. Content will lean into how to guides, nicotine calculators and storage tips. Expect more education around PG, VG, coil choice and the settings that reduce burn so coils live longer and juice goes further.
International hints
Markets that introduced higher taxes saw quick pivots to concentrates and DIY. Greece is often cited where longfills became common. The UK will write its own version but the pattern is familiar. Where duty bites, innovation follows.
Risks to watch
Classification risk for concentrates. Labelling mistakes that slow border clearance. Mismatched systems that sell at the wrong price. Too many SKUs that make compliance hard. Stock that arrives close to October without the correct stamps or paperwork. These are fixable with planning and checklists.
A word on VAT
Remember VAT sits on the total price including duty. When you model retail prices, include duty inside cost of goods, then apply your margin then VAT. This is why shelf prices may look higher than duty alone suggests.
The customer journey after October
Stage one is sticker shock. Stage two is exploration as vapers try larger formats and longfills. Stage three is stabilisation where favourite flavours return to the basket and new routines settle in. Good retailers will guide customers through all three with simple explanations and fair bundles.
Our say
The vape tax will reshape the market. Prices will rise, operations will get heavier and the first few months will be noisy. The same ingenuity that gave us shortfills will push the next wave. Longfills and smarter mix kits will take a bigger share if classification and pricing line up. Clear guidance, honest pricing and practical education will win loyalty when duty arrives.
If you need a simple walkthrough on the 2026 vape duty, TPD rules and compliance basics so you waste less and save more, read our Vape Regulations and Law hub which explains everything in plain English.
For the law that still frames bottles, strengths and notifications, revisit what is tpd. For an operational view of labels, testing and pack warnings under those rules, see what does tpd compliant mean.
If you need to plan age-verification and staff training alongside duty, read what is the legal age to vape. For safety paperwork that supports your risk assessment, keep what is a msds data sheet in your process.