Key Points
- HM Revenue and Customs has opened applications for the new Vaping Products Duty (VPD) and Vaping Duty Stamps (VDS) Scheme from 1 April 2026.
- The new excise duty and mandatory duty stamps will apply from 1 October 2026.
- The rules affect UK vape manufacturers, importers, warehousekeepers and wider supply chains.
- Duty will apply at a flat rate of £2.20 per 10ml on all vaping liquids, including nicotine-free products.
- Retailers may continue selling unstamped stock already held before 1 October 2026 until 31 March 2027.
- From 1 April 2027, all vaping products outside approved duty suspension arrangements must carry valid duty stamps.
- HMRC has warned that businesses failing to comply could face civil penalties, fines or criminal prosecution.
- Businesses are being advised to begin registration immediately due to approval processing times and operational changes required before implementation.
What Has HMRC Announced About Vaping Products Duty?
HM Revenue and Customs has formally opened registrations for the UK’s new Vaping Products Duty and Vaping Duty Stamps Scheme, marking a major regulatory change for the vaping sector ahead of implementation in October 2026.
According to HMRC, businesses involved in the manufacture, importation, storage and distribution of vaping products should begin the approval process immediately to avoid disruption when the new duty takes effect.
The changes form part of the UK government’s wider “Plan for Change” strategy aimed at reducing youth vaping and creating a smoke-free generation.
As reported by HMRC, Rachel Nixon, Director of Indirect Tax, said: “From 1 April 2026, UK vape manufacturers, importers and warehousekeepers can apply to HMRC for Vaping Products Duty and Vaping Duty Stamps Scheme approval, which is essential for these businesses to continue trading legally from 1 October.”
She added that the new guidance is intended to help businesses “prepare properly, avoid errors and ensure they can continue trading when the new requirements apply from October.”
Who Will Be Affected by the New Vaping Duty Rules?
Which Businesses Must Register?
The rules apply broadly across the vaping supply chain, including:
- Vape manufacturers
- Importers
- Warehousekeepers
- Distributors
- Retailers handling duty-liable products
- Businesses moving vaping goods under duty suspension arrangements
The changes will also affect overseas suppliers importing products into the UK market, particularly where businesses rely on UK excise warehousing arrangements.
Companies entering the vaping market for the first time will also need to understand approval requirements before commencing trade.
How Will Retailers Be Impacted?
Retailers are not required to remove unstamped stock already held before 1 October 2026 immediately. HMRC has confirmed a transitional grace period lasting until 31 March 2027.
However, from 1 October 2026, all newly supplied duty-liable vaping products entering retail channels must carry valid duty stamps.
Retailers purchasing non-compliant stock after that date may face compliance risks if products cannot be traced through legitimate supply chains.
What Is Vaping Products Duty?
How Much Duty Will Businesses Pay?
The new Vaping Products Duty will apply at a flat rate of £2.20 per 10ml of vaping liquid.
The duty applies to:
- Nicotine-containing vape liquids
- Non-nicotine vape liquids
VAT obligations will remain separate and continue to apply in addition to the new excise duty.
When Does the Duty Become Payable?
HMRC guidance states that the relevant business information submitted during registration will determine when duty becomes payable from 1 October 2026 onwards.
The department has also published guidance covering:
- Measurement of vaping liquids for duty purposes
- Submission of returns
- Record-keeping obligations
- Import and export requirements
- Stock movement under duty suspension
- Northern Ireland arrangements
Businesses may need to review internal accounting systems, stock controls and VAT registration processes to ensure compatibility with the new excise reporting framework.
What Are Vaping Duty Stamps?
Why Are Duty Stamps Being Introduced?
The Vaping Duty Stamps Scheme is designed to help HMRC identify products where duty has not been paid and to strengthen supply-chain compliance.
Under the scheme, individual retail units of vaping products sold or supplied in the UK must carry an approved vaping duty stamp.
According to HMRC, the scheme is intended to support enforcement activity against illicit trade while improving traceability throughout the sector.
What Types of Stamps Will Be Used?
HMRC confirmed that two phases of duty stamps will be introduced.
Transitional Stamps
From 1 April 2026 until 31 August 2026, approved businesses will only be able to purchase transitional duty stamps.
These stamps include security features but do not contain digital functionality.
HMRC said businesses can use this period to prepare compliant stock for release from 1 October 2026.
However, transitional stamps must not be affixed to products after 30 September 2026.
Digital Duty Stamps
From 1 September 2026, businesses will only be able to purchase vaping duty stamps containing digital security features and additional anti-counterfeit protections.
HMRC confirmed that Cartor Security Printers Limited has been appointed as the official supplier of vaping duty stamps.
What Are the Key Compliance Deadlines?
1 April 2026
- Applications open for manufacturers, importers and warehousekeepers.
- Penalties linked to vaping duty stamp requirements begin applying.
31 August 2026
- Final date for purchasing transitional duty stamps.
1 September 2026
- Digital vaping duty stamps become mandatory for approved purchases.
1 October 2026
- Vaping Products Duty officially takes effect.
- All vaping products released for sale or supply in the UK must carry duty stamps.
- Duty becomes payable on vaping liquids.
- Businesses must begin filing returns and maintaining compliant records.
31 March 2027
- Grace period for retailers selling older unstamped stock ends.
1 April 2027
- All vaping products outside duty suspension arrangements must carry valid duty stamps.
What Penalties Could Businesses Face for Non-Compliance?
HMRC has stated that non-compliance may result in both civil and criminal sanctions.
The published guidance outlines potential consequences including:
- Financial penalties
- Civil sanctions
- Product seizures
- Criminal prosecution
The department also confirmed that offences and penalties will apply to all duty-liable products from 1 October 2026, while penalties connected specifically to vaping duty stamps may apply from 1 April 2026.
Businesses failing to obtain approvals, maintain records or correctly stamp products could therefore face enforcement action before the full implementation date.
How Will the Changes Affect Company Operations?
What Operational Changes May Be Required?
Affected businesses may need to implement substantial operational updates before October 2026, including:
- Revising stock management systems
- Updating warehouse procedures
- Training staff on duty stamp requirements
- Adjusting import documentation
- Reviewing supplier contracts
- Implementing new excise accounting controls
Businesses using third-party logistics or warehousing providers may also need to confirm whether approved warehouse arrangements remain compliant under the new rules.
For newly established companies entering the vaping market, directors may need to consider how company formation structures, excise registrations and VAT registration obligations interact with the new regime.
Will Directors Face Additional Compliance Responsibilities?
Company directors may face heightened governance responsibilities because HMRC’s framework places emphasis on record accuracy, traceability and legal supply-chain controls.
Directors overseeing vaping-related businesses may therefore need to ensure:
- Accurate Companies House information
- Up-to-date director appointment records
- Proper accounting systems
- Timely excise and tax filings
- Clear audit trails for imported stock
Businesses affected by the changes may also need professional support with confirmation statement filing, director changes and broader compliance obligations linked to regulated trading activities.
How Does This Fit Within Wider Government Policy?
The vaping duty measures were originally confirmed during the Autumn Budget 2024.
The government stated the new excise duty is intended to reduce the affordability and appeal of vaping products, particularly among younger users.
At the same time, tobacco duties are also increasing, with ministers positioning the policy as part of a broader public health strategy.
HM Treasury analysis published alongside Budget 2025 estimated that Vaping Products Duty could raise more than £550 million annually by 2030-31.
The regulatory framework also aligns with measures contained within UK Government proposals linked to the Tobacco and Vapes Bill 2024.
What Guidance Has HMRC Published?
HMRC has consolidated operational guidance into a single GOV.UK resource covering:
- Registration procedures
- Approval processes
- Duty calculations
- Record-keeping rules
- Northern Ireland arrangements
- Import and export processes
- Compliance checks
- Criminal offences and sanctions
The department stated that centralising guidance should reduce delays, minimise common filing mistakes and help businesses prepare before implementation deadlines arrive.
HMRC also confirmed it will expand awareness campaigns later in 2026 targeting the retail sector.
Supporting materials published include:
- Stakeholder communications packs
- Online guidance collections
- Webinars
- An instructional YouTube video
Businesses involved in vaping products may therefore need to begin reviewing compliance systems immediately to avoid approval delays, operational disruption or enforcement risks before October 2026.
