Countdown to Vaping Products Duty: What you need to know

HM Revenue and Customs (HMRC) is reminding manufacturers, importers, and warehousekeepers involved with vaping products to prepare for registration for Vaping Products Duty (VPD) and the Vaping Duty Stamps (VDS) Scheme from 1 April 2026. Early preparation is essential to avoid disruption to operations when the new regime goes live.

The government is committed to creating a smoke-free generation and tackling youth vaping as part of its Plan for Change. To support this, a new excise duty on vaping products is being introduced from October 2026, alongside tobacco duty increases to incentivise smokers to choose vaping over smoking.

From 1 October 2026, VPD will apply to all vaping liquids sold or supplied in the UK at a flat rate of £2.20 per 10ml, regardless of nicotine content. At the same time, duty stamps must be affixed to the retail packaging of individual vaping products for the UK market. A six‑month grace period will apply for older stock already in retail channels; from 1 April 2027 all UK vaping products outside duty suspension must carry a duty stamp. Non‑compliance may result in civil or criminal sanctions.

To support implementation, HMRC completed a competitive procurement process and has appointed Cartor Security Printers Limited as the vaping duty stamps supplier under a concession contract. Businesses will purchase duty stamps directly from them using the supplier’s ordering and data‑capture system, which provides authentication and traceability features. This appointment delivers HMRC’s commitment to ensure stakeholders can approach the legitimate stamp supplier ahead of scheme launch.

Duty stamps will only be supplied to approved individuals, manufacturers and importers. They must have HMRC’s approval first to use UK duty stamps on vaping products.

Rachel Nixon, HMRC’s Director of Indirect Tax, said:

“We are working closely with the vaping sector on this new excise duty ahead of its introduction. From 1 April this year, manufacturers, importers and warehousekeepers must apply to HMRC for approval to continue supplying vaping products in the UK. This gives them six months to obtain our approval before the new duty and duty stamps go live.

“GOV.UK guidance sets out everything businesses need to know. Searching ‘vaping duty’ is the best place to start. Early preparation is essential to ensure a smooth transition and to avoid disruption to operations.”

What vaping businesses need to do now:

• Check whether you need HMRC approval: UK manufacturers of vaping products must apply for approval for both VPD and the VDS Scheme. Warehousekeepers may apply for VDS Scheme approval directly. Overseas manufacturers must appoint a UK representative to apply for the VDS Scheme on their behalf; importers will be liable for the new duty and must register if acting as a UK representative for an overseas manufacturer.
• Plan for duty stamps operations: Duty stamps must be applied before release for consumption and will combine physical security features with digital elements for traceability and authentication, with associated data recorded in the supplier’s system.
• Prepare for timelines and transitional arrangements: Applications open 1 April 2026; VPD and VDS Scheme start 1 October 2026; grace period ends 31 March 2027. This can take upwards of 45 working days in some instances.

HMRC has published a stakeholder communications pack to help organisations share important information amongst their networks about preparing for 1 April and further milestones.

At Autumn Budget 2024, the government confirmed the introduction of Vaping Products Duty to reduce the affordability and appeal of vaping products - particularly among young people.

Following consultation, the government confirmed introducing the Vaping Duty Stamps Scheme to complement HMRC compliance activity by enabling quick identification of non‑duty‑paid products and strengthening supply‑chain management. Treasury analysis indicates that the new vaping duty is expected to raise more than £550 million a year by 2030-31 to fund vital public services like the NHS.

The new excise duty and stamps will be introduced together on 1 October 2026.

HMRC Press Release

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