How Much Tax is Applied to E-Liquids in Germany?

In Germany, excise duty applies even to nicotine-free e-liquids. As of 2025, the duty stands at €0.26/ml. By 2026, the country is expected to have the highest vape tax rate in the EU.

E-Liquid Excise Tax Schedule

· 2022: €0.16/ml

· 2024: €0.20/ml

· 2025: €0.26/ml

· 2026: €0.32/ml

This tax is calculated per milliliter, and the 19% VAT is charged on top of the total price including the excise tax, which significantly amplifies the final retail cost. By 2026, the retail price of a 10ml bottle may exceed €9 in many cases.

Retail Price Example of 10ml E-Liquid

2024

· Base Price: €3.87

· Excise Tax: €2.00

· VAT (19% of €5.87): €1.12

· Retail Price: €6.99

2025

· Base Price: €4.50

· Excise Tax: €2.60

· VAT (19% of €7.10): €1.35

· Retail Price: €8.45

2026

· Base Price: €4.80

· Excise Tax: €3.20

· VAT (19% of €8.00): €1.52

· Retail Price: €9.52

Industry Impact

The 2025 tax increase is already putting pressure on the German vaping sector. Brands are dealing with higher production costs, narrower margins, and a reduction in product diversity. Many smaller manufacturers have exited the market, while others are forced to streamline their SKUs and reformulate to remain competitive. As the rate climbs further in 2026, additional price hikes and market consolidation are expected.

B2B Insight

Due to high taxation levels, a large portion of the German market now prefers tax-optimized formats. When building a e-liquid line for Germany, high-concentration and low-volume products, such as Longfill are regarded as the best choices.

With a nationwide ban on disposables likely to take effect, BAR SALTS e-liquids may also gain traction, thanks to their combination of flavor intensity and nicotine strength, they serve as a potential replacement for disposable vapes.

ABOUT HANGSEN

Hangsen is one of the largest global e-liquid manufacturers. Since we established the industry’s manufacturing standards and introduced VG+PG as the base liquid for e-liquids, our business has expanded to over 80 countries and regions worldwide. The world’s top e-cigarette brands and tobacco  enterprises are our loyal clients. With over 60,000 e-liquid flavor formulations developed to date, Hangsen continues to empower global vape brands with premium e-liquid manufacturing solutions. Innovation, efficiency, safety, and stability are the cornerstones of our ongoing pursuit.

For inquiries about e-liquid manufacturing services, please contact us at service@hangsen.com.