HMRC opens VPD applications ahead of October compliance deadline
April 7, 2026
A new excise duty, Vaping Products Duty, will apply to all UK vaping liquids from 1 October 2026 (Photo: iStock)
HM Revenue & Customs (HMRC) has called on UK vape manufacturers, importers and warehouse keepers to begin registering immediately for the new Vaping Products Duty (VPD), as applications officially opened on 1 April.
The tax authority has published comprehensive guidance outlining how businesses across the vaping supply chain can secure approval for both VPD and the Vaping Duty Stamps (VDS) Scheme, warning that early action will be critical to maintaining legal trading status when the regime comes into force later this year.
From 1 October, VPD will apply to all vaping liquids, whether nicotine-containing or not, with a flat duty rate of £2.20 per 10ml. At the same time, all vaping products released for sale in the UK must carry an official duty stamp on individual retail packaging, marking a significant regulatory shift for the category.
HMRC stressed that businesses must submit the necessary information now to begin the approval process, which can take at least 45 working days if further checks are required. The data provided during registration will also determine when duty becomes payable from October, making early compliance essential.
Rachel Nixon, HMRC’s Director of Indirect Tax, said the new guidance is designed to help firms prepare effectively and avoid disruption: “Using it now will help firms prepare properly, avoid errors and ensure they can continue trading when the new requirements apply from October.”
The newly released guidance consolidates key operational details, including how duty is calculated, record-keeping requirements, import and export rules, and the movement of stock under duty suspension. It also clarifies enforcement measures, with HMRC warning that non-compliance could lead to civil penalties or criminal prosecution.
A phased transition has been set out to support industry readiness. Between April and August, approved businesses will only be able to purchase “transitional” duty stamps, which include security features but no digital element. From September, stamps will incorporate enhanced digital features, ahead of full enforcement in October.
Retailers will be granted a six-month sell-through period for existing unstamped stock, ending on 31 March 2027. After this point, all vaping products in the UK supply chain must carry valid duty stamps unless held under duty suspension.
Cartor Security Printers Limited is the appointed supplier of vaping duty stamps under HMRC’s concession contract.
The introduction of VPD and the stamps scheme forms part of the government’s wider strategy to curb youth vaping and support its ambition for a smoke-free generation. Treasury forecasts suggest the duty will raise more than £550 million annually by 2030–31, contributing to public services including the NHS.
HMRC said it will continue to engage with the retail sector later this year to raise awareness and support compliance as the October deadline approaches.
