E-cigarette tax: everything about the European directive

Update — October 2025: France reveals its tax intentions

Article originally published in July 2025 — Edited and updated with new information on 13 October 2025 - Information updated in a dedicated article: 2026 Finance Bill: taxes on e-liquids, end of online sales and tobacconist monopoly. 

While Europe is still working on harmonized taxation of e-liquids by 1 January 2028, a new milestone has just been reached on the French side. According to initial leaks, the French government intends to introduce as early as 2026 a national tax of €0.03/ml on e-liquids, independently of the future European directive.

This measure would be integrated into the 2026 Finance Bill, put forward by the reappointed government of Sébastien Lecornu, with Amélie de Montchalin in charge of Public Accounts.

Concretely:

• A 10 ml bottle would be taxed at €0.30.
• A 50 ml e-liquid would be taxed an additional €1.50.
• For a 100 ml bottle, you would need to add €3.

At this stage, it would involve a "reduced" tax rate, well below the amounts announced by Brussels (up to €0.36/ml for high-nicotine strengths). But nothing rules out France progressively increasing this taxation to align with the European line if the directive is adopted as it stands.

What this means for French vapers

Even though €0.03/ml may seem low compared to the amounts discussed in Brussels, this is the first time France has formalized a dedicated tax on vaping. This could open the door to:

• Progressive taxation (as was the case with tobacco).
• A distinction between nicotine-containing and nicotine-free products, or conversely a uniform tax, which is of particular concern to users of DIY bases and large-format products.
• A strategy allowing the State to prepare public opinion ahead of the European tax shock.

This "small tax" could be the gateway to a heavier tax system, aligned with EU logic once the directive is adopted.

What now?

• 2026 Budget: to be watched very closely — if it does include this measure, it will be the first direct French tax on e-liquids.
• European directive: still pending, with certain member states (Sweden leading the way) refusing harmonization.

Background reminder — The original article (July 2025)

It is now official: the European Commission has just proposed a directive aimed at introducing a minimum tax on all tobacco products, including e-liquids for e-cigarettes, by 1 January 2028. A decision that could well change the game for vapers and professionals alike. We explain everything you need to know.

A tax on vaping? The Commission takes action

On 17 July 2025, Brussels reached a milestone by publishing a European directive amending the tax framework for tobacco products. In the crosshairs: all products containing nicotine, including probably 0 mg/mL e-liquids… which contain none.

The stated objective? To harmonize tax regimes across member states and, above all, to adapt the rules to market developments, particularly with the rise of vaping.

But behind this drive for harmonization lies a measure that risks considerably increasing the bill for vapers.

How much will this new tax on e-liquids cost?

According to the text, the tax will be calculated based on the nicotine level in e-liquids:

• For an e-liquid with a nicotine level below 15 mg/ml, expect an additional €0.12/ml or 20% of the VAT-inclusive price.
• For an e-liquid with a nicotine level between 15 and 20 mg/ml, the bill will be significantly higher with a surcharge of €0.36/ml or 40% of the VAT-inclusive price

The highest amount between the two options will apply.

A few examples: 

A 10 ml bottle with 20 mg/ml of nicotine could therefore be taxed at €3.60 for the excise duty alone, excluding VAT and the base price. The total bill would then come to nearly €10 per unit... 

For a 10 ml e-liquid at 6 mg/ml, expect a surcharge of €1.20, bringing the total to around €6 to €7 incl. VAT. 

And bad news: this tax could also apply to nicotine-free e-liquids.

Thus, nicotine-free e-liquids in 50 ml will see their price increase by €6, €12 for a 100 ml bottle, €24 for a 200 ml bottle. 

As you will have gathered, large-volume DIY could be the big loser in the tax equation proposed by Europe. With these calculations, a nicotine-free 1-litre base containing exclusively propylene glycol and vegetable glycerin could see its price increase by €120...

Who are the big winners of this directive?

Paradoxically, closed pod systems and reusable disposable vapes, heavily regulated but often not very durable, will be the least affected by future taxation.

These devices, generally containing a maximum of 2 ml of liquid, will see their price increase only slightly. Conversely, standard 10 ml bottles, 50/100 ml e-liquids, DIY bases… all will be hit hard.

Result: the most economical, reusable and eco-friendly formats are discouraged, in favor of disposable or semi-disposable products generating far more waste.

An ecological and public health absurdity, which goes against all messages promoting waste reduction and consumer responsibility.

A measure with worrying consequences for smoking cessation

This draft directive is not going down well with healthcare professionals and harm reduction advocates. Numerous studies have shown that the e-cigarette is today one of the most effective tools for quitting smoking. Taxing its products, especially the most nicotine-heavy ones, amounts to penalizing the most dependent smokers in the midst of a quit attempt.

As a reminder, under-dosing on nicotine is one of the leading causes of failure when quitting smoking. By increasing the price of high-strength e-liquids, the directive risks pushing smokers toward less effective products, to vape more in order to feel nicotine satisfaction… or even to return to conventional cigarettes.

When will this tax come into effect?

Not right away. Here are the upcoming steps:

1. The Council of the European Union must adopt the directive unanimously by all 27 member states.

2. The European Parliament will be consulted, but its opinion will not be binding.

3. Each country will then need to transpose the directive into its national legislation.

If all goes as planned, the tax will come into effect no later than 1 January 2028.

Adoption still uncertain at European level

Despite the directive being made official, nothing is settled. Some countries, such as Sweden, have already voiced their opposition to the text. On social media, the Swedish Finance Minister stated her desire to allow each country the freedom to tax according to the actual harmfulness of the products. A differentiated approach that recognizes the lower harmfulness of the e-cigarette compared to traditional tobacco.

Other member states could follow this line, which would jeopardize the required unanimity for the adoption of the text.

What are vaping professionals saying?

On the side of distributors and manufacturers, concern is the dominant feeling. For Le Vapoteur Discount, this directive could directly impact vapers' budgets, many of whom have already chosen vaping as a healthier and more affordable alternative to cigarettes.

Taxing e-liquids means risking making tobacco competitive again, especially in countries where cigarettes are already heavily taxed.

And now, what do we do?

The directive is not yet in force, but vigilance is required. For vapers and vaping professionals alike, the coming months will be decisive.