Vaping Products Duty and Stamps Scheme: What Businesses Need to Know

The UK Government is introducing Vaping Products Duty (VPD) and vaping duty stamps (VDS) from 1 October 2026. VPD, a new excise duty, will apply to all vaping liquids (or e-liquids) sold or supplied in the UK, at a flat rate of £2.20 per 10ml and VDS must be attached to individual vaping products.

From 1 April 2026, any business involved in the manufacture or importation of vaping products, or storage of duty-suspended vaping products, must apply for approval from HM Revenue and Customs (HMRC) to continue operating lawfully in the UK once VPD and the VDS Scheme come into effect. With just six months until approval registration opens, HMRC is urging all affected businesses to prepare now to avoid disruption as approval may take up to 45 working days.

What this means for businesses:

• UK manufacturers of vaping products must apply for approval for both VPD and the VDS Scheme.
• Warehousekeepers will be able to apply for VDS Scheme approval directly.
• Overseas manufacturers must appoint a UK representative to apply for the VDS Scheme on their behalf.
• Importers will be required to pay the new duty. They must also register for VPD and the VDS Scheme if they are acting as a UK representative for an overseas manufacturer.

Rachel Nixon, HMRC’s Director of Indirect Tax, said:

“We are working closely with the vaping sector ahead of these changes. Businesses are encouraged to visit GOV.UK and search ‘prepare for vaping duty’ to access guidance and updates. Early preparation is essential to ensure a smooth transition and to avoid disruption to operations.”

From 1 October 2026, vaping duty stamps must be attached to individual vaping products sold or supplied in the UK. A six-month grace period will apply to older vaping stock already in place for retail sale. From 1 April 2027, all vaping products outside of duty suspension in the UK must carry a duty stamp, and the sale of older unstamped stock will be prohibited. Non-compliance with the new requirements may result in civil or criminal sanctions, including penalties, fines and criminal prosecution.

When packaged for UK retail sale any vaping products stored in approved places, such as an excise warehouse, can only be moved in duty suspension once. Any further movements before the goods leave duty suspension will be liable to duty payment. VPD must be paid when vaping products leave the duty suspension stage, upon release to the UK market.

More information is available on GOV.UK.

Alongside HMRC’s excise reforms, the Department of Health and Social Care (DHSC) and the Department for Environment, Food & Rural Affairs (Defra) are progressing complementary policies focused on public health, environmental impact, and product regulation. These include the ban of single-use vapes, that came into force on 1 June 2025, future restrictions on vape flavours and introducing vape-free places, as outlined in the Government’s Tobacco and Vapes Bill which is currently passaging through parliament.

HMRC Press Release

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