Today marks the one-month countdown until both the Vaping Products Duty (VPD) and the Vaping Duty Stamps schemes will come into force.
HM Revenue & Customs (HMRC) has urged any businesses or individuals this will affect to make sure they are fully prepared for the changes due on 1 October.
Businesses across the vaping supply chain, including retailers and wholesalers, should be preparing for the changes now.
The new excise duty of £2.20 per 10ml on vaping products - whether they contain nicotine or not - will come into force alongside tobacco duty increases. Together, they form part of the Government’s wider plans to create a smoke-free generation, tackle youth vaping and help adult smokers to give up tobacco.
Rachel Nixon, HMRC’s director of indirect tax, said: “With one month to go until VPD comes into force, manufacturers, importers and warehouse keepers should have applied to HMRC for approval and be preparing to pay any of the new excise duty due, to comply with the new requirements.
“Businesses that don’t have approval by that date cannot produce vaping products in the UK and may be unable to trade. They could also face operational delays and may be subject to civil or criminal sanctions.”
Retailers and wholesalers
Retailers and wholesaler should work with their suppliers to ensure the vaping products they stock comply with the new requirements. Those that only sell or distribute duty-paid vaping products, either wholesale or retail, do not need to apply for VPD or Vaping Duty Stamps Scheme approval.
They can continue to buy and sell existing eligible unstamped stock during a six-month transition period from 1 October 2026 to 31 March 2027. However, vaping products manufactured in, or imported into, the UK on or after 1 October 2026 must have a duty stamp.
From 1 April 2027, the retail packaging of all vaping products sold or supplied in the UK must carry a valid vaping duty stamp. Businesses that do not comply with the new rules may face civil or criminal sanctions.
Further details for those who sell, store, distribute or handle vaping products in retail or wholesale in the UK is available here.
Vape duty basics
- Businesses that manufacture vaping products act as UK representatives for overseas manufacturers, or store duty-suspended vaping products, should have obtained the HMRC approvals they need to operate from 1 October.
- Businesses liable for VPD will need to account for and pay the duty when the ‘duty point’ is triggered.
- Duty-liable products released for sale in the UK will also need a valid Vaping Duty Stamp. Where products enter a duty-suspension arrangement, payment of the duty is deferred until they leave duty-suspension. Whether the duty is passed to others in the supply chain is a commercial decision.
Following industry feedback, approved manufacturers, UK representatives and warehouse keepers can buy transitional duty stamps until 30 November 2026 and affix them until 31 December 2026.
Digital stamps are available from today (1 September) and can also be applied immediately to products by those approved under the Vaping Duty Stamps Scheme.
Stamped vaping products, transitional or digital, cannot be released onto the market until 1 October 2026. From 1 January 2027, only digital duty stamps can be affixed to vaping products.
Digital stamps will support authentication and traceability through the supply chain using a simple scanning app provided by the duty stamp supplier.
Importer advice
Vape product importers will need to pay VPD when vaping products arrive in the UK, unless the goods enter duty suspense, for example in an approved customs warehouse.
Information about when and how to pay the VPD is available here.
Consumer advice
Vape consumers in the UK will begin to see changes to vaping products and packaging from 1 October, as VPD and the Vaping Duty Stamps Scheme come into effect. HMRC will provide further information to help them understand the changes.
New rules for travellers bringing vaping products into the UK for personal use will also apply from 1 October. Information about the new personal allowance rules for travellers will be available at the gov.uk site from 1 October and is being communicated in advance of the changes.
There are different rules for travellers entering Great Britain and Northern Ireland.
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