HM Revenue and Customs (HMRC) has announced the opening of registration for Vaping Products Duty (VPD) and the Vaping Duty Stamps (VDS) Scheme.
From 1 April 2026, UK-based manufacturers, importers, and warehousekeepers of vaping products can apply for approval to ensure compliance with new regulations set to take effect from 1 October 2026.
These measures form part of the government’s broader plan to reduce smoking rates, address underage vaping, and ensure appropriate taxation in the rapidly evolving vaping market.
Overview of Vaping Products Duty
The Vaping Products Duty introduces a new excise regime for all vaping liquids sold in the United Kingdom, regardless of whether they contain nicotine.
Effective from 1 October 2026, this duty will be charged at a fixed rate of £2.20 per 10ml of liquid. The duty is designed to support public health objectives as well as bring consistency to the taxation of vaping products.
Registration Process and Key Dates
Businesses involved in the manufacture, import, or warehousing of vaping products must apply for approval from HMRC starting 1 April 2026. The process requires submission of specific information and documentation, with approval potentially taking at least 45 working days if additional details are requested.
Registration is an essential step, as excise duty on vaping products becomes payable from 1 October 2026. Key milestones include the initial availability of ‘transitional’ vaping duty stamps until 31 August 2026, which lack digital features but carry security markings.
From 1 September 2026, only stamps with advanced security, including digital elements, will be issued. Products bearing duty stamps cannot be released to the market before the official launch on 1 October 2026.
Duty Stamps and Compliance Measures
From 1 October 2026, all vaping products produced in or imported into the UK for retail sale must carry a vaping duty stamp. These stamps need to be affixed to the retail packaging of individual units.
Retailers are permitted to sell any unstamped stock held prior to this date until the end of a six-month transition period, concluding on 31 March 2027. From 1 April 2027, all vaping products outside approved duty suspension must be stamped, and failure to comply may result in civil or criminal penalties
including fines and prosecution. The appointed supplier for duty stamps is Cartor Security Printers Limited.
Government’s Public Health Strategy
The introduction of VPD and the VDS Scheme is part of the government’s ‘Plan for Change’, aimed at creating a smoke-free generation and curbing the appeal and accessibility of vaping to young people.
As part of this strategy, tax policy changes will increase the cost of vaping products, narrowing the appeal for underage usage while still providing a less harmful alternative for those transitioning from smoking.
Chancellor Rachel Reeves has endorsed the policy as a measure to ‘reduce the affordability and attractiveness of vaping, particularly among young people.’ The government has also confirmed an increase in tobacco duty to maintain a clear financial incentive for smokers to switch to vaping.
Financial Impact and Revenue Projections
According to Treasury analysis, the planned duty on vaping products is forecast to generate over £550 million in annual revenue by the 2030–31 financial year.
These funds are expected to contribute to the funding of essential public services, including the NHS. Value-added tax (VAT) will also continue to be collected on vaping products alongside the new excise duty.
Final Summary
The phased introduction of Vaping Products Duty and the Vaping Duty Stamps Scheme marks a significant regulatory shift for the UK’s vaping industry.
With registration now open and duty requirements set to commence from 1 October 2026, affected businesses must take proactive steps to comply and avoid potential penalties.
The government’s integrated approach aligns public health objectives with market regulation while directing substantial additional revenue to public services.
For ongoing updates and support, businesses can access further resources via GOV.UK and, for broader industry insights, refer to the Pie app for the latest financial developments.
