UAE vape tax is a 100% excise tax on e-cigarette devices and e-liquids, plus 5% VAT. Since 1 September 2026, Cabinet Decision 137/2026 also sets a minimum excise price of AED 1 per ml for e-liquid, which is why vapes are more expensive in the UAE now: the tax on a liquid can no longer be worked out from a very low price.
This guide explains how the UAE vape tax works, what changed on 1 September 2026, how much tax sits inside a typical price, and what it means for buyers. PuffDigest is a UAE information guide for adults 18+ and sells nothing. It is general information, not tax advice.
Key takeaways
- Electronic smoking devices and e-liquids, with or without nicotine, carry a 100% excise tax in the UAE.
- The tax has applied since 1 January 2020. Cabinet Decision 197/2025 restated the 100% rate from 1 January 2026.
- From 1 September 2026, the excise price of e-liquid cannot be lower than AED 1 per ml (Cabinet Decision 137/2026).
- There is no minimum excise price for devices.
- 5% VAT is charged on top of the price that already includes excise.
What is the UAE vape tax?
The UAE vape tax is an excise tax charged at 100% on electronic smoking devices and tools and on the liquids used in them, whether or not they contain nicotine. Excise is a federal tax on goods the government wants people to use less, so it applies the same way in Dubai, Abu Dhabi, Sharjah and every other emirate.
Excise is paid by the importer or producer when goods enter the UAE market, and it is built into the shelf price. You do not pay it separately at the till. On top of that, the retailer charges 5% VAT on the final price.
| Product | Excise rate | Minimum excise price | VAT |
|---|---|---|---|
| E-liquid, with or without nicotine | 100% | AED 1 per ml (from 1 Sep 2026) | 5% |
| Electronic smoking devices and tools | 100% | None | 5% |
| Cigarettes, including heated tobacco sticks | 100% | AED 0.40 per cigarette | 5% |
| Water-pipe and ready-to-use tobacco | 100% | AED 0.10 per gram | 5% |
Why are vapes more expensive in the UAE now?
Vapes are more expensive in the UAE now because, from 1 September 2026, the excise on e-liquid is calculated on at least AED 1 per ml. Before, a cheap bottle was taxed on its low price. Now a 60 ml bottle carries at least AED 60 of excise, however low its shelf price was before.
The rate itself did not change. What changed is the base the tax is worked out on. That matters most for large, cheap bottles of freebase e-liquid, which had the lowest price per ml. Small nic salt bottles and pre-filled disposables are affected less, because their liquid already sold at a higher price per ml.
Timeline of UAE vape tax
| Date | Change | Law |
|---|---|---|
| 1 Jan 2020 | 100% excise extended to electronic smoking devices and their liquids | Cabinet Decision 52/2019 |
| 1 Jan 2026 | New excise goods and rates decision; 100% kept for devices and liquids | Cabinet Decision 197/2025 |
| 1 Sep 2026 | Minimum excise price of AED 1 per ml for e-liquid | Cabinet Decision 137/2026 |
How does the AED 1 per ml minimum excise price work?
The AED 1 per ml rule is a floor on the excise price, the value the 100% tax is calculated on. It is not a minimum shelf price. If the normal method gives an excise price below AED 1 per ml, the AED 1 per ml figure is used instead, so the tax on the liquid can never be less than AED 1 per ml.
Under Cabinet Decision 197/2025, the excise price is the higher of the Federal Tax Authority’s standard price for the product and its designated retail sale price minus the tax included in it. Decision 137/2026 then sets the floor under that figure.
Minimum excise on common bottle sizes
The table below shows the lowest excise that can be due on common e-liquid sizes from 1 September 2026. VAT and the retailer’s margin come on top.
| Bottle size | Minimum excise price | Minimum excise tax at 100% |
|---|---|---|
| 10 ml | AED 10 | AED 10 |
| 30 ml | AED 30 | AED 30 |
| 50 ml | AED 50 | AED 50 |
| 60 ml | AED 60 | AED 60 |
| 120 ml | AED 120 | AED 120 |
For context, before the floor a 60 ml freebase bottle could sell at about AED 40-50 in the UAE. At that price, the tax built in was well below AED 60, which is the gap the new rule closes.
How much of a vape’s price is tax?
With a 100% excise rate, about half of a vape’s price before VAT is excise tax. For a device or liquid where the floor does not bite, the excise price is roughly half the retail price before VAT, and the excise equals that half. VAT at 5% is then added to the total.
| Shelf price (incl. VAT) | Price before VAT | Approx. excise inside | VAT |
|---|---|---|---|
| AED 42 | AED 40.00 | About AED 20 | AED 2.00 |
| AED 63 | AED 60.00 | About AED 30 | AED 3.00 |
| AED 105 | AED 100.00 | About AED 50 | AED 5.00 |
These are simplified examples that assume the designated retail price equals the shelf price. Real excise is based on prices registered with the Federal Tax Authority, so the exact split can differ.
Which products does the UAE vape tax cover?
The UAE vape tax covers both parts of vaping: the hardware and the liquid. Pre-filled disposables contain both, so they are taxed as excise goods too. Zero-nicotine e-liquids are not exempt, because the law covers liquids with or without nicotine.
- Disposable vapes: 100% excise, built into the shelf price.
- Pod kits and mods: 100% excise on the device, with no minimum excise price.
- Pods and cartridges: taxed as devices or liquids depending on whether they come pre-filled.
- E-liquids: 100% excise, with the AED 1 per ml floor from 1 September 2026.
- Heated tobacco sticks: taxed as tobacco at 100%, with a floor of AED 0.40 per stick.
Do vapes need a tax stamp in the UAE?
The Federal Tax Authority’s digital tax stamp scheme lists cigarettes, water-pipe tobacco and electrically heated cigarettes. Its published product list does not name e-cigarettes or e-liquids. So a missing stamp on a vape is not by itself proof that it is fake, but labelling, batch codes and price still matter.
Prices far below the normal range can point to untaxed or counterfeit stock. Packaging quality, Arabic labelling and batch codes help you spot a fake vape in the UAE.
What the UAE vape tax means for you
For most adults who vape, the UAE vape tax shows up in three ways. Disposables and pod kits keep roughly the prices they had, large bottles of cheap freebase liquid face the biggest pressure, and very low prices become a stronger warning sign of non-compliant stock.
- Compare per ml. Divide a bottle’s price by its size. Anything far below AED 1 per ml before VAT is unusual after 1 September 2026.
- Expect the biggest change on 60-120 ml bottles. These had the lowest price per ml.
- Check strength and size limits. The UAE standard UAE.S 5030 caps nicotine at 20 mg/ml and refill bottles at 50 ml, so very large bottles may not meet it.
- Keep receipts from known shops. They help if you ever need to show where a product came from.
Tax sits alongside age, nicotine and product rules that decide whether vaping is legal in the UAE for a given product.
Does the UAE vape tax apply at duty free?
Duty-free shops sell to departing and arriving travellers outside the domestic tax system, so their prices are not set the same way as shop prices in town. If you bring vapes into the UAE, personal-use amounts are generally expected, and Dubai Customs rules on tobacco allowances apply to tobacco products. Check current customs guidance before you travel.
Frequently asked questions
What is the excise tax on vapes in the UAE?
The excise tax on vapes in the UAE is 100%. It applies to electronic smoking devices and tools and to e-liquids, with or without nicotine. It has applied since 1 January 2020 and was kept at 100% by Cabinet Decision 197/2025 from 1 January 2026. VAT at 5% is charged on top.
What is Cabinet Decision 137 of 2026?
Cabinet Decision 137/2026 sets minimum excise prices for tobacco products and e-liquids. In force from 1 September 2026, it says the excise price of e-liquid cannot fall below AED 1 per ml. It keeps floors of AED 0.40 per cigarette and AED 0.10 per gram of water-pipe tobacco.
Is the AED 1 per ml a minimum shelf price?
No. AED 1 per ml is the minimum excise price, the value the 100% tax is calculated on. It means the excise on a 30 ml bottle is at least AED 30. The shelf price also includes the retailer’s costs, margin and 5% VAT.
Are zero-nicotine e-liquids taxed in the UAE?
Yes. The excise covers liquids used in electronic smoking devices whether or not they contain nicotine, so 0 mg e-liquids carry the same 100% excise and the same AED 1 per ml floor as nicotine liquids.
Did disposable vape prices go up on 1 September 2026?
The rule change targets e-liquid. Disposables already carried 100% excise and usually sold well above AED 1 per ml of liquid inside them, so a large jump was not expected. typical disposables still listed at about AED 35-60.
Is vape tax the same in Dubai and Abu Dhabi?
Yes. Excise tax and VAT are federal, so the same rates and the same AED 1 per ml floor apply in every emirate. Price differences between shops come from margins, not from emirate rules.
UAE vape tax in 2026: the bottom line
The UAE vape tax is 100% excise on devices and liquids plus 5% VAT, and from 1 September 2026 the excise on e-liquid is worked out on at least AED 1 per ml. Large, cheap bottles feel it most. Compare prices per ml and treat very low prices with caution.
Next read: Can I bring a vape to Dubai?
For adults 18+ only. General information, not tax advice.
