The UK’s new Vaping Products Duty (VPD) comes into force on 1 October 2026, and it significantly changes the way vaping retailers, wholesalers, and distributors calculate the cost of their goods. The duty is levied on the volume of vaping liquid in a vaping product, not on nicotine content. The duty rate is £2.20 for every 10 ml, or £0.22 per ml, and applies to vaping liquids with and without nicotine.
Important UK VPD dates:
|
Dates |
What happens |
|
1 April, 2026 |
Opening of
VPD registrations |
|
1 September, 2026 |
Stamps of
digital vaping duty will be available. |
|
1 October,
2026 |
VPD will be
implemented. |
|
1 October, 2026 |
For products,
the duty stamp becomes relevant for release to the market. |
|
31 March, 2027 |
The
transitional period will end for some unstamped stocks. |
|
1 April, 2027 |
The rule will
become stricter for unstamped stocks. |
VPD Calculations for Retailers and Distributors
The easiest way to estimate the impact of VPD is to
calculate the additional duty per product and multiply it by your stock volume:
VPD = Total e-liquid volume in ml × 0.22
For example:
- 2ml
pod = 2 × 0.22 = £0.44 VPD
- 10ml
e-liquid = 10 × 0.22 = £2.20 VPD
- 12ml
vaping liquid = 12 × 0.22 = £2.64 VPD
- 20ml
vaping liquid = 20 × 0.22 = £4.40 VPD
- 24ml
vaping liquid = 24 × 0.22 = £5.28 VPD
HMRC states that duties are charged based on the amount of
vaping liquid in the product, and liabilities are rounded down to the nearest
penny in the monthly return.
How to Calculate VPD Vape Duty on Your Stock
If you are a retailer or a wholesale distributor, here are
some calculation guidelines to help you estimate your VPD liability:
1. Check the total liquid volume
Review the product specifications and determine how many ml
of vaping liquids are included in the product you sell.
2. Convert into the VPD rate
Use the calculation above to determine the VPD for a single
unit.
3. Multiply by your stock volume.
Let’s say you have 100 units of a 12ml product:
100 × 12 ml × 0.22 = £264 VPD
4. Adjust your wholesale/retail pricing.
VPD is an additional business cost that must be added to
your pricing. Furthermore, remember that VAT is due on vaping products as well.
VPD Calculator: Comparison of Hayati Pro Max and Pro
Ultra
One of the easiest examples to illustrate the difference in
VPD is the comparison between the Hayati Pro Max+ 6000 and the Hayati Pro
Ultra+ 25000. According to the UK listings on one of the vaping retailers, the
Pro Max+ 6000 is priced at approximately £9.99, while the Pro Ultra+ 25000 is
sold for around £10.99. Note that the product configuration and pricing can
vary between retailers, and the figures above are used as an example for the
VPD calculation.
For illustration purposes, we are using the Pro Max+ 6000 as
a 12ml and Pro Ultra+ 25000 as a 24ml vaping product; however, please check the
actual specifications of the UK-listed products.
|
Product |
Liquid volume |
VPD rate |
VPD per unit |
Example price before VPD |
Example price after VPD |
|
Hayati Pro Max+ 6000 |
12 ml |
£0.22/ml |
£2.64 |
£9.99 |
£12.63 |
|
Hayati Pro Ultra+ 25000 |
24 ml |
£0.22/ml |
£5.28 |
£10.99 |
£16.27 |
Illustrative calculation based on a hypothetical complete
VPD pass-through to the consumer.
What is the impact of VPD on a retail vape shop?
|
Product |
Stock |
Total liquid |
VPD per unit |
VPD on 100 units |
|
6000 |
100 |
1,200 ml |
£2.64 |
£264 |
|
24000 |
100 |
2,400 ml |
£5.28 |
£528 |
Based on the comparison above, a retail vape shop that
carries 100 units of the Pro Max+ 6000 and 100 units of Pro Ultra+ 25000 will
be liable for £264 VPD on the Pro Max+ 6000 stock and £528 VPD on the Pro
Ultra+ 25000 stock. Thus, every 100 units of the Pro Ultra+ 25000 will incur an
additional £264 VPD duty compared to the Pro Max+ 6000 on the same stock volume
due to the double volume of vaping liquids in the Pro Ultra+ 25000.
Will VPD Make the Pro Ultra More Expensive?
It depends on the intended retail price, but since VPD is
applied based on the volume of vaping liquids, not the number of puffs, a
25,000-puff product cannot be priced the same as a 6,000-puff product. When a
retail vape shop compares the Pro Max+ 6,000 and the Pro Ultra+ 25,000, it
should pay specific attention to how much liquid is in the vaping product. The
UK government guidance confirms that VPD applies to all vaping liquids in
vaping products. This means the 25,000-puff Pro Ultra+ 24ml, for example, will
incur double the VPD of the Pro Max+ 6,000 12ml.
How much will the duty increase vape prices in the UK
after 2026?
It is impossible to provide a particular figure for the
general increase, since VPD is a specific tax of £0.22 per ml, and not a
percentage. For example, if a retail vape shop sells a £10 vaping product with
a 10ml vaping liquid, the VPD of £2.20 will increase the price by 22%. Similarly,
a £10 vaping product with a 20ml vaping liquid will have a VPD of £4.40, which
will bring the price to £14.40. Thus, larger volumes of vaping liquids will
increase the final retail price more significantly. Nevertheless, the UK
government guidance confirms that the increase for consumers will be higher
than the additional £0.22 per ml due to the need to add VAT to the final price
as well.
VPD Stock Calculator for Vape Shops
Use this simple calculation to estimate the VPD of your
stock:
Number of products × Liquid volume × £0.22 = VPD
For example, if a vape shop has 50 × 12ml products and 50 ×
24ml products:
50 × 12 × 0.22 = £132
and
50 × 24 × 0.22 = £264
Thus, the total VPD for the 50 × 12ml and 50 × 24ml products
will be £132 + £264 = £396.
Frequently Asked Questions
What is the VPD rate for the UK?
The rate for the Vaping Products Duty (VPD) is £2.20 per
10ml of vaping liquid. This is equivalent to 22p per ml.
How do I calculate the VPD for a vape product?
The calculation for this levy is simple: you multiply the
volume of liquid in ml by 22p, which equates to £0.22 per ml.
Total vaping liquid volume (ml) × £0.22 = VPD payable
So, for example, for a product containing 12ml of vaping
liquid, £2.64 of VPD would be payable.
Is the VPD dependent on the nicotine strength in the
vape?
No, the calculation is purely based on the volume contained
within the vape device.
How much VPD would a product with 10ml of vaping liquid
be subject to?
10ml × £0.22 = £2.20
How much VPD would a product with 12ml of vaping liquid
be subject to?
12ml × £0.22 = £2.64
How much VPD would a product with 24ml of vaping liquid
be subject to?
24ml × £0.22 = £5.28
Can we refund or reclaim the VPD?
There are certain rules established by HMRC regarding the
payment of VPD. For more information, just study it.