Soil liquefaction has been extensively investigated over the years with the aim to understand its fundamental mechanism and successfully remediate it. Despite the multi-directional nature of earthquakes, the vertical seismic component is largely neglected, as it is traditionally considered to be of much lower amplitude than the components in the horizontal plane. The 2010–2011 Canterbury earthquake sequence in New Zealand is a prime example that vertical accelerations can be of significant magnitude, with peak amplitudes well exceeding their horizontal counterparts. As research on this topic is very limited, there is an emerging need for a more thorough investigation of the vertical motion and its effect on soil liquefaction. As such, throughout this study, uni- and bidirectional finite-element analyses are carried out focusing on the influence of the input vertical motion on sand liquefaction. The effects of the frequency content of the input motion, of the depth of the deposit and of the hydraulic regime, using variable permeability, are investigated and exhaustively discussed. The results indicate that the usual assumption of linear elastic response when compressional waves propagate in a fully saturated sand deposit does not always hold true. Most importantly post-liquefaction settlements appear to be increased when the vertical component is included in the analysis.