UK Vaping Products Duty starts on 1 October – businesses have less than a month to prepare

Written By Phillip Henwood

The UK’s new Vaping Products Duty (VPD) and Vaping Duty Stamps Scheme (VDS) will come into force on 1 October 2026, and businesses involved in the manufacture, importation, warehousing or supply of vaping products need to ensure they are ready.

With less than a month remaining, businesses requiring HMRC approval should act urgently. Businesses that require approval will not be able to carry out the relevant regulated activities from 1 October unless the necessary approval has been granted.

New duty of £2.20 per 10ml

Vaping Products Duty will apply to all vaping liquids manufactured in, or imported into, the UK, regardless of whether they contain nicotine.

The new duty will be charged at a flat rate of:

£2.20 per 10ml of vaping liquid (22p per ml).

For example, the VPD on a 10ml refill bottle will therefore be £2.20, while a 2ml pod will attract duty of 44p.

For UK-manufactured products, the duty will generally become due at manufacture unless the goods immediately enter duty suspension. For imported products, VPD will normally be accounted for through the customs declaration when the goods are released, unless they enter an approved duty-suspension arrangement.

Duty stamps become mandatory

Alongside the new duty, the Vaping Duty Stamps Scheme is being introduced.

Vaping products manufactured in, or imported into, the UK for release onto the UK market from 1 October 2026 will generally need to carry the appropriate vaping duty stamp.

HMRC-approved manufacturers, UK representatives and warehousekeepers can already purchase digital duty stamps.

There are also transitional arrangements. Approved businesses can purchase transitional stamps until 30 November 2026 and affix them until 31 December 2026. From 1 January 2027, only digital duty stamps can be affixed.

The digital stamps are intended to allow products to be authenticated and traced through the supply chain.

Overseas manufacturers – UK representation may be required

The changes are particularly important for overseas vaping product manufacturers supplying the UK.

Where an overseas manufacturer wants duty stamps to be applied as part of its overseas manufacturing process, it must appoint an approved UK representative.

The UK representative applies for the relevant HMRC approval and purchases and manages vaping duty stamps on behalf of the overseas manufacturer.

Overseas manufacturers should therefore review their UK supply arrangements now rather than waiting until goods are due to be shipped.

Existing unstamped stock

There is a limited transitional period for existing stock.

Eligible unstamped vaping products manufactured or imported before 1 October 2026 may continue to be sold until 31 March 2027.

However, businesses should retain evidence demonstrating that unstamped products qualify for this transitional treatment.

From 1 April 2027, all vaping products outside duty suspension in the UK must carry a valid vaping duty stamp. Retailers should therefore ensure that any remaining legitimate unstamped stock has been sold, returned, exported, destroyed or otherwise lawfully dealt with before that date.

Retailers and wholesalers

Businesses which only sell or distribute duty-paid vaping products at wholesale or retail do not themselves need to obtain VPD or VDS approval.

They nevertheless have important compliance responsibilities.

From 1 October they should ensure that new stock carries a duty stamp where required and should take particular care when offered unstamped products. HMRC expects businesses to retain appropriate commercial and supply-chain records demonstrating why any unstamped stock held during the transitional period can legitimately continue to be sold.

What should businesses be doing now?

With the new regime starting on 1 October 2026, affected businesses should urgently:

  • establish whether they require VPD or VDS approval;

  • check that any necessary HMRC applications have been made and progressed;

  • determine when Vaping Products Duty will become payable within their supply chain;

  • review import and customs arrangements, including any use of duty suspension;

  • ensure arrangements are in place for purchasing and applying duty stamps;

  • review systems for digital stamps and supply-chain traceability;

  • identify and document stocks manufactured or imported before 1 October which may qualify for the transitional period; and

  • ensure overseas manufacturers have appropriate UK representation where required.

Businesses should not underestimate the lead time involved. HMRC has warned that approval applications can take more than 45 working days to process.

With less than a month until implementation, businesses that have not yet addressed the new requirements need to do so urgently.

How 4 Eyes can help

4 Eyes Ltd can assist UK and overseas businesses with the introduction of Vaping Products Duty and the Vaping Duty Stamps Scheme, including reviewing supply chains, determining registration and approval requirements, advising on import and duty-suspension arrangements and assisting overseas manufacturers with their UK compliance obligations.

For further information, please contact:

4 Eyes Ltd
Email: info@4eyesltd.co.uk
Website: www.4eyesltd.co.uk

Phillip Henwood
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