The UK Government has announced a countdown to its new Vaping Products Duty (VPD) and Vaping Duty Stamps (VDS) scheme, set to take effect on October 1, 2026. HM Revenue and Customs (HMRC) is urging all businesses involved in the vaping sector to prepare for the significant changes to avoid operational disruption.
The VPD, a new excise duty, will apply to all vaping liquids (e-liquids) sold or supplied in the UK, including both nicotine-containing and nicotine-free liquids. The tax will be charged at a flat rate of £2.20 per 10ml of vaping liquid. Concurrently, Vaping Duty Stamps (VDS) must be attached to individual vaping products intended for UK retail sale.
A critical deadline for businesses is April 1, 2026, when registration for HMRC approval opens. Any business involved in the manufacturing, importation, or duty-suspended storage of vaping products must apply for this approval to continue operating lawfully once the new duty and stamp scheme begins. HMRC warns that the approval process may take up to 45 working days.
UK manufacturers must apply for approval for both VPD and the VDS Scheme. Overseas manufacturers must appoint a UK representative to apply for the VDS Scheme on their behalf, and importers will be responsible for paying the new duty.
From October 1, 2026, all new vaping products released to the UK market must carry a duty stamp. A six-month grace period will allow retailers to sell older, unstamped stock. However, from April 1, 2027, all vaping products on the market must be stamped, and the sale of unstamped stock will be prohibited. Non-compliance may result in civil or criminal sanctions, including fines and prosecution. This new excise duty complements other government policies, such as the ban on single-use vapes (effective June 1, 2025) and potential future restrictions on flavors under the Tobacco and Vapes Bill.
