Spain implements tax on vaping products and nicotine pouches

Since 1 January 2025, Spain has implemented a new excise tax on e-cigarette liquids and nicotine pouches. This initiative by the Spanish government is part of a broader strategy to reduce nicotine consumption, protect public health and align with European Union (EU) recommendations for stricter regulation of new tobacco and nicotine products.

Spain's approach reflects initiatives in other EU countries that have successfully implemented similar policies. The European Commission has supported these measures, stressing their importance for reducing overall nicotine consumption and protecting public health.[1].

A tax based on nicotine content for e-liquids

Under the new law, e-cigarette liquids will be taxed based on their nicotine content. Liquids containing more than 15 milligrams of nicotine will be taxed at €0.20 per milliliter, while those containing 15 milligrams or less, or completely nicotine-free, will be taxed at €0.15 per milliliter. Since many vaping liquids are packaged in 10 to 30 milliliter bottles, the additional cost could range from €2 to €6 per bottle, depending on the nicotine content. Nicotine pouches will also be taxed at €0.10 per gram. These rates reflect the government's desire to discourage the use of these products, particularly among young people.

The law also imposes compliance obligations on businesses. Retailers and wholesalers must declare their stocks of vaping liquids and nicotine pouches as of April 1, 2025. This declaration, which must be submitted electronically to the Spanish Tax Agency by the end of this month, will determine the stock subject to taxation. Businesses will then have until July 2025 to calculate and pay the taxes due on these stocks.

A comprehensive plan to reduce smoking and the appeal of new products

In addition to taxing these products, restrictions on the promotion and sale of vaping products are also planned. Other proposals include banning flavours for vaping products, and introducing plain packaging for these products, a measure intended to reduce their appeal. The Ministry of Health is also working on banning smoking in more outdoor public spaces, such as terraces. These measures will need to be approved by Parliament and are part of a broader national plan approved in early 2024 to reduce the prevalence of smoking and vaping.

Taxation of e-liquids, a measure supported by many EU countries

On December 9, 2024, sixteen European Union countries, including France, sent a letter to the European Commission, urging it to introduce a tax on vaping products.

This initiative, led by the Netherlands and supported by Germany, Belgium, Bulgaria, Croatia, Denmark, Spain, Estonia, Finland, France, Ireland, Latvia, Portugal, Slovakia and Slovenia, also aims to relaunch the process of revising the European Directive on the taxation of tobacco products by including e-cigarettes and other new tobacco products, currently not covered by European legislation. The signatories stress the importance of tax harmonisation at European level to address disparities between Member States and strengthen the fight against smoking and related products.

The finance ministers of the countries concerned want this issue to be addressed as a priority in view of the major delays in the revision process.

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[1] Javier Frade, Hacienda will suffer vape impuestos in 2025, El Indepiendete, published on December 4, 2024, consulted on January 3, 2025