Countdown to Vaping Products Duty and Stamps Scheme – what businesses need to know

• A new excise duty, Vaping Products Duty, will apply to all UK vaping liquids from 1 October 2026.
• Businesses involved in the manufacturing or importing of vaping products, or storing of duty-suspended vaping products, must apply for approval to continue operating.
• Registration for approval opens on 1 April 2026 - so businesses need to prepare to avoid disruption.
• Vaping Products Duty and vaping duty stamps are part of the government’s Plan for Change to create a smoke-free generation and tackle youth vaping.

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.

Notes to Editors

1. Vaping Products Duty (VPD) will apply to all vaping liquids (or e-liquids), whether nicotine-containing or not.
2. The Vaping Duty Stamps Scheme (VDS Scheme) will require vaping duty stamps on all individual retail units of vaping products.
3. HMRC will provide further details on stamp design, digital features to enable supply chain scanning processes, duty payment mechanisms and enforcement in 2026. HMRC will announce the specialist supplier, from whom approved businesses can purchase duty stamps, before April 2026.
4. A six-month grace period will apply from 1 October 2026 to 31 March 2027 for older unstamped stock.
5. The government announced at Budget 2024 that it would introduce a new Vaping Products Duty (VPD) from October 2026.
6. HM Treasury and HMRC consulted on VPD from 6 March to 29 May 2024.
7. The responses from stakeholders and interested parties have helped shape the policy development.
8. We continue to engage with key stakeholders and the supply chain as VPD and the VDS Scheme are introduced.
9. Information for point-of-sale retailers and consumers will be provided ahead of 1 October 2026.
10. Other useful links:
    
    • Prepare for Vaping Duty – GOV.UK
    • Receiving, storing and moving excise goods – GOV.UK
    • The Tobacco and Vapes Bill 2024 – GOV.UK
      
      
11. Follow HMRC’s Press Office on X @HMRCpressoffice