Published on 2024-10-28
These adjustments will have a direct impact on businesses, and this article will help manufacturers and stakeholders understand how to navigate these changes to remain compliant and competitive. From adapting product formulations to optimizing pricing strategies, this guide provides the insights you need to adjust your business operations and make the most of upcoming regulatory shifts.
In this article you will learn:
- What is excise duty tax
- Key excise tax changes for nicotine products in 2025 across Europe
- New tax rates for Poland, Germany, Italy, and more
- How to adjust pricing, formulations, and supply chains to stay compliant
- How Chemnovatic’s excise tax solutions can simplify your business operations
What Is Excise Duty?
What is more, the excise tax is not universal, it applies only to selected groups of products. Moreover, if a group of products is subject to excise duty at the European Union level, then we are talking about harmonized excise goods. These include:
- energy products
- electricity
- alcohol drinks
- tobacco products
States may additionally tax excise goods other than those listed above. An example is Belarus, which imposed excise duty on goods such as shoes, or Poland, where excise duty applies to cars.
Harmonized Products
Who Decides If A Product Is Harmonized?
What Is Product Harmonization About?
Excise Duty In The European Vape Industry
Excise Products In The Vape Industry
Raw materials for e-liquid manufacturing that are subject to excise duty are:
Retail e-liquid products that are subject to excise duty are:
What Is The Current Situation Of The European E-Liquid Market?
Upcoming Excise Tax Changes Across Different European Countries
Countries such as Germany, Czechia, and Italy are introducing or adjusting excise duties for these products, while others, like Poland and Latvia, are updating their existing structures to reflect new EU directives. These changes are motivated by the need to reduce the consumption of various products, ensure fair competition across borders, and increase tax revenues.
Updating EU Taxation on Vaping Products
The existing law is outdated and unable to address the rise of new tobacco products. Each country has adopted its own set of rules, leading to varying levels of excise tax and inconsistent regulations. For instance, France bans the sale of vapes to people under 18 and restricts their use in certain public spaces, while Italy allows public use but forbids vaping near schools. Such inconsistencies might create confusion and an uneven playing field for manufacturers and consumers alike.
The update to the EU tobacco taxation law, initially scheduled for 2022, has been delayed, leading to continued discussions on reform. With disposable vapes gaining popularity, environmental concerns are also rising. These products, often single-use, contribute significantly to electronic waste and pose challenges for proper recycling due to their mix of materials like plastic, metal, and batteries. As the consumption of disposable vapes increases, many countries are considering potential bans or stricter regulations to address both their environmental impact and the health risks associated with their widespread use.
Key Trends for Excise Tax Changes Include:
- Higher taxes on e-liquids and nicotine pouches in major markets
- Standardization of excise duties across EU countries to avoid price discrepancies that could drive consumers to purchase products in lower-tax jurisdictions.
- Growing scrutiny on raw materials, which may start seeing some form of taxation in several countries.
Excise Tax Rates in Various EU Member States
Excise Tax in Poland
In March 2025, Poland raised excise duties on e-liquids by 75%, increasing the rate to PLN 0.96 (€0.21) per milliliter, followed by a further hike to PLN 1.44 (€0.32) in 2026. This applies to both nicotine-containing and nicotine-free liquids. Additionally, heated tobacco products will see incremental excise increases, with a 50% rise in 2025, a 20% increase in 2026, and a 15% increase in 2027. These changes position Poland among the countries with the highest taxes on such products and aim to reduce consumption, particularly among minors.
As of April 1, 2025, new regulations have been introduced in Poland, which apply excise duty to new categories of nicotine products:
- Vaporization devices (such as e-cigarettes and heat-not-burn devices)
- Spare parts for these devices
- Nicotine pouches
- Other nicotine products (such as nicotine gums, snuff, and chewing tobacco)
As a result, the obligation to mark these products with excise stamps has been introduced with two deadlines:
- By August 31, 2025 – for vaporization devices, spare parts for these devices, and e-liquid contained in disposable e-cigarettes.
- By April 30, 2026 – for innovative products, nicotine pouches, and other nicotine products.
These changes impose new obligations on businesses, including the need to register in the CRPA, submit excise declarations, and maintain proper records for products that are not yet marked with excise stamps.
Excise Tax Changes in Germany
Excise Tax Rise in the Czech Republic
Excise Tax Changes in Italy
As of January 2025, Italy has implemented an increase in excise duty on nicotine liquids, following a gradual adjustment outlined in the budget law. The discount compared to tobacco excise dropped from 15% to 16%, leading to a price increase of approximately €0.11 per 10ml bottle. In 2026, the tax will rise again to 17%, adding another €0.12 per bottle. Nicotine-free liquids and flavorings will also be affected, with taxes reaching about €0.90 per 10ml in 2025 and €1 in 2026.
Excise Tax in Latvia
International Supply Chain? Take Care Of Its Safety!
If your supplier is based in a country where excise duty applies and does not have a tax warehouse, this means that…
- They work against the law
- You are purchasing an illegal product and this may result in legal consequences
- The security and continuity of your orders are at risk – the shipment of your order may be suspended
Even if there is no excise duty in your country, you may be asked to testify as a witness in penal and fiscal proceedings.
Why is it important?
Since January 2023, we have been observing increased excise duty inspections on the Polish vape market. More and more companies turn to us for help in matters related to excise duty because they want to be sure that their supply chain is formally and legally secured.
How Can Manufacturers Adapt Their Operational Strategies Based on National Markets?
Optimize Nicotine Formulations for EU Excise Tax Compliance in 2025
Optimize Pricing Strategies Amid EU Excise Tax Hikes
Streamlining Supply Chains to Lower Excise Costs
For instance, Chemnovatic operates an excise tax warehouse that allows us to store, manage, and distribute products under tax suspension, ensuring compliance with various national regulations. This structure helps avoid upfront excise payments until the products are released into the market, offering significant benefits.
Additionally, banderole management – the process of labeling products with tax stamps – can be complex and vary widely across EU member states. Chemnovatic’s infrastructure is designed to handle this efficiently, ensuring that products meet all legal requirements.
We offer services that streamline this process, from warehousing to logistics, with in-house experts who understand the ever-changing tax landscape. This integrated approach allows manufacturers to not only lower overall costs but also maintain compliance, improving competitiveness across different European markets.
Ensuring Compliance and Reporting in New Excise Tax Frameworks
Chemnovatic provides a full suite of excise tax services through its ExTRA (Excise Tax Ready Solutions), designed to help manufacturers navigate these changes seamlessly. Operating from Poland – where excise duty has been enforced for a few years now – Chemnovatic has the largest excise tax warehouse in Central Europe, equipped to manage all aspects of excise tax, from manufacturing to tax stamp labeling.
Chemnovatic’s ExTRA service covers everything from consultations on country-specific excise regulations to handling the entire reporting process for clients. This includes tax stamp labeling, ensuring your products are compliant with Polish and EU laws.
If excise duties are already implemented in your market or will be soon, Chemnovatic can help you manage compliance, streamline tax reporting, and ensure your products meet the latest regulations. You don’t need your own excise warehouse – our facility is fully equipped to manage all your excise-related needs. Whether you’re distributing products in Poland or looking to expand to other excise-tax countries, Chemnovatic is your trusted partner in regulatory compliance.
How To Function Safely In The Vape Industry?
Given these two possibilities, before we answer the question of how to operate in the vape industry legally, let’s clarify these two issues.
Prepayment Of Excise Duty
Tax prepayment consists of paying the tax before the manufacturing of products, adequate to the rate of excise duty that must be paid for a certain number of goods manufactured. For example, if a manufacturer wants to make 100 units of e-liquid, they must first pay excise duty on that number of products, before they can legally produce them.
For many companies, prepayment of excise duty is an unattainable solution, because the more goods one needs to produce, the more prepayment must be made by the manufacturer. What does this mean in practice? Freezing large sums of money and disrupting the company’s financial liquidity.
Tax Warehouse
If the manufacturer of vape products has their tax warehouse, they can produce excise goods themselves without the need to make a prepayment. Let us state, however, that the sum of the values of the products produced and stored in one day cannot exceed the financial guarantee that the tax warehouse is covered with.
Chemnovatic was the first company in the vape industry in Poland which has set up its tax warehouse at its headquarters, with a total security guarantee of several dozen million PLN. Thanks to that, we have been continuously operating by the law, in a suspended excise duty, since 1 October 2020.
Transportation Of Excise Goods
Sales of excise goods from a country with excise duty:
- Sales to countries where the excise duty is in force – in this situation, after shipping, the customer signs the receipt document and thus releases the manufacturer’s financial security in the form of suspended excise duty in his country. From now on, the customer is responsible for the excise tax on the purchased goods – following the requirements imposed by his country. Check the list of excise duty countries here.
- Sales to countries where the excise duty does not apply – in this situation, after the delivery of the goods, the customer also signs the receipt document and thus releases the manufacturer from the security in the form of suspended excise duty. The difference is that there is no excise tax in the customer’s country, so they no longer have any legal and financial obligations concerning the goods received.
Chemnovatic – A Business Partner You Can Trust
Our expert specialists boast a profound understanding of e-liquid and raw material trade within the European Union. Moreover, they have successfully obtained numerous individual tax interpretations and emerged victorious in the majority of legal disputes, facilitating the legal circulation of excisable goods within the Polish vape industry.
By collaborating with Chemnovatic, you mitigate financial and legal risks, ensuring the acquisition of a premium-quality, legally compliant product.
If you have any questions, please contact us at sales@chemnovatic.com.
Summary: 2025 Excise Tax on Nicotine Products in Europe
Ensure your business stays ahead of regulatory changes! Get in touch with our excise tax experts today for tailored compliance solutions.
