TOBACCO TAX ON ELECTRONIC CIGARETTES

Under the Portuguese Excise Code, Tobacco Tax is levied on the following products:

1. Cigars and cigarillos

2. Smoking tobacco, including fine-cut tobacco for rolling cigarettes and other smoking tobacco (excluding water pipe tobacco)

3. Water pipe tobacco

4. Snuff

5. Chewing tobacco

6. Heated tobacco

7. Liquids, with or without nicotine, in containers used to charge or refill electronic cigarettes—whether reusable or disposable

Since the 2024 State Budget came into force, the scope of the Tobacco Tax has been expanded to include nicotine-free liquid used in e-cigarette refill containers, regardless of whether they are reusable or not.

This article focuses on the taxation of liquids (with or without nicotine) in containers used to charge or refill electronic cigarettes.

An electronic cigarette is defined as a product designed to vaporize nicotine-containing liquid for inhalation via a mouthpiece. This includes the device itself, cartridges, reservoirs, and any other components—whether disposable, refillable via a reservoir, or using non-reusable cartridges.

The tax is applied per millilitre of liquid. Importantly, the tax rate depends not only on whether the liquid contains nicotine but also on whether the cartridge is reusable.

Tobacco Tax rates for e-cigarette liquid in 2025:

• Nicotine-containing liquid in disposable e-cigarettes: €772.30 per litre

• Nicotine-free liquid in disposable e-cigarettes: €386.15 per litre

• Nicotine-containing refill liquid: €514.87 per litre

• Nicotine-free refill liquid: €257.43 per litre

Before any tobacco product can be sold in Portugal, it must be approved by the Tobacco Tax Division, with oversight from the Directorate-General of Health.

In the autonomous regions of Madeira and the Azores, the marketing of electronic cigarettes also requires authorization from local customs authorities. Additionally, the release of electronic cigarettes for consumption—whether nicotine-containing or not—is subject to a sealing requirement. Specific tax stamps are used for Madeira and the Azores. Portuguese law prohibits the sale on the mainland of products approved for consumption in these autonomous regions, and vice versa.

To legally receive e-cigarettes in Portugal, a company must be recognized as an authorized warehouse keeper or a registered consignee. Since these products are not harmonized at the EU level, their movement is documented using a national form that mirrors the EU's electronic accompanying document.

Summary

All e-liquids—whether nicotine-containing or not and whether used in disposable or refillable cartridges—are subject to Tobacco Tax in Portugal, calculated per millilitre. Tax rates vary based on nicotine content and cartridge reusability.

Marketing and sale of e-cigarettes in mainland Portugal and the autonomous regions of Madeira and the Azores require prior authorization from the relevant tax authorities. Products released for consumption in one region cannot be sold in another.

To import or distribute e-cigarettes in Portugal, companies must hold specific authorization and follow national transport documentation rules due to the lack of EU harmonization in this area.