HMRC sets countdown to vaping products duty and stamps scheme
October 4, 2025
A new excise duty, Vaping Products Duty, will apply to all UK vaping liquids from 1 October 2026 (Photo: iStock)
Industry urged to prepare early as registration opens in April 2026 ahead of new £2.20 per 10ml duty
HM Revenue and Customs (HMRC) has issued a formal call to action for the vaping industry, warning that manufacturers, importers, and warehouse operators must begin preparing now for the introduction of the new Vaping Products Duty (VPD) and Vaping Duty Stamps (VDS) Scheme, which both come into force on 1 October 2026.
The new excise duty will apply to all vaping liquids, whether containing nicotine or not, sold or supplied in the UK, at a flat rate of £2.20 per 10ml. At the same time, individual vaping products must carry official duty stamps similar to those already used on alcohol and tobacco products.
HMRC said the changes form a central part of the government’s Plan for Change to “create a smoke-free generation and tackle youth vaping,” complementing wider public health and environmental measures such as the ban on single-use vapes, which took effect on 1 June 2025, and future restrictions on vape flavours currently being debated under the Tobacco and Vapes Bill 2024.
Six-month countdown to registration
From 1 April 2026, all UK businesses that manufacture, import, or store vaping products under duty suspension will be required to apply for official HMRC approval to continue operating once the duty and stamp requirements come into effect.
The registration window opens six months before the new regime begins, but HMRC is advising businesses to start preparations now, warning that approval could take up to 45 working days to process.
“We are working closely with the vaping sector ahead of these changes,” said Rachel Nixon, HMRC’s Director of Indirect Tax. “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.”
Who needs to register
Under the new framework:
- UK manufacturers must apply for approval for both the VPD and VDS Scheme.
- Warehousekeepers can apply directly for VDS Scheme approval.
- Overseas manufacturers must appoint a UK representative to handle VDS applications.
- Importers will have to pay the new duty and register for both schemes if they also act as UK representatives for foreign producers.
Businesses storing vaping products in excise warehouses will only be able to move those goods once while in duty suspension before release for the UK market. Once products leave duty suspension, the new vaping duty will become payable.
New stamp rules and grace period
From 1 October 2026, all vaping products sold or supplied in the UK must carry an official vaping duty stamp, which will confirm that duty has been paid.
A six-month grace period – from 1 October 2026 to 31 March 2027 – will apply for existing unstamped stock already in the retail supply chain. From 1 April 2027, the sale of any unstamped vaping products will be prohibited, with civil or criminal penalties for non-compliance, including fines and potential prosecution.
HMRC said further details on stamp design, security features, digital tracking functions, and duty payment mechanisms will be provided in 2026. A specialist supplier of vaping duty stamps will be announced before April 2026, giving approved businesses time to adapt their packaging and distribution systems.
