The UK has introduced a new Vaping Products Duty (VPD) from 1 October 2026, creating a new excise duty on vaping liquids manufactured in or imported into the UK.
The duty applies whether the vaping liquid contains nicotine or not. Alongside the new duty, the government has introduced a Vaping Duty Stamps Scheme designed to improve traceability and help tackle illicit vaping products.
For manufacturers, importers, warehousekeepers, wholesalers and retailers, the changes create new compliance requirements across the vaping supply chain.
What is the new UK Vaping Products Duty?
Vaping Products Duty is a new UK excise duty charged on vaping liquids produced in or imported into the UK.
The rate is:
£2.20 per 10ml of vaping liquid
The duty applies to vaping liquids regardless of whether they contain nicotine. Products held under approved duty-suspension arrangements, such as an authorised customs or excise warehouse, can have payment of the duty deferred until the relevant duty point.
The duty is paid by relevant manufacturers, importers and warehousekeepers approved by HMRC. Whether the cost is passed on to retailers or consumers is a commercial decision.
When did Vaping Products Duty start?
The new duty came into force on:
1 October 2026
From this date, vaping liquids manufactured in or imported into the UK are subject to Vaping Products Duty, subject to the applicable duty-suspension arrangements.
Businesses involved in manufacturing vaping products in the UK must have the required HMRC approval. Manufacturing without the necessary approval is unlawful and may result in penalties, seizure of goods or equipment, or criminal prosecution.
What are Vaping Duty Stamps?
Alongside the new excise duty, HMRC has introduced the Vaping Duty Stamps Scheme.
Duty stamps are placed on vaping products or their retail packaging and are intended to indicate that the products are subject to the vaping duty requirements.
The scheme also introduces digital functionality designed to improve supply-chain traceability and allow authenticity checks as the system develops.
When do digital vaping duty stamps become mandatory?
Transitional stamps can be used during the initial implementation period.
Key dates include:
| Date | Requirement |
|---|---|
| 1 October 2026 | Vaping Products Duty and the duty stamp scheme begin |
| 31 December 2026 | Transitional stamps may be affixed until this date |
| 1 January 2027 | Digital duty stamps become mandatory for new products manufactured or imported |
| 31 March 2027 | Eligible existing unstamped stock may be sold until this date |
| 1 April 2027 | Vaping products sold in the UK must carry a valid duty stamp |
These transitional arrangements are particularly important for wholesalers and retailers managing existing inventory.
What does the new duty mean for businesses?
Businesses across the vaping supply chain need to review their processes to ensure they comply with the new rules.
Manufacturers
UK manufacturers must obtain the necessary HMRC approvals and account for Vaping Products Duty when the relevant duty point occurs.
Manufacturing vaping products without the required approval can lead to enforcement action.
Importers
Importers bringing vaping products into the UK need to account for the new duty unless the products enter an applicable duty-suspension arrangement.
They must also ensure that products meet the applicable stamping requirements.
Warehousekeepers
Approved warehousekeepers handling duty-suspended vaping products have responsibilities concerning the movement and eventual release of products from duty suspension.
Businesses should ensure their systems can properly track stock and duty obligations.
Wholesalers and retailers
Wholesalers and retailers that only purchase and sell duty-paid vaping products generally do not need approval under the Vaping Products Duty or Vaping Duty Stamps Scheme.
However, they should work with suppliers to ensure that the products they stock comply with the new requirements.
What happens to existing vaping stock?
HMRC has introduced a six-month grace period for eligible existing unstamped, non-duty-liable stock.
Wholesalers and retailers can continue selling qualifying existing stock until:
31 March 2027
From 1 April 2027, vaping products sold or supplied in the UK must carry a valid vaping duty stamp.
This means businesses should distinguish between stock already held before the new duty came into effect and products manufactured or imported from 1 October 2026 onwards.
Are nicotine-free vaping liquids also subject to the duty?
Yes.
The new Vaping Products Duty applies to vaping liquids whether they contain nicotine or not.
The statutory provisions define vaping products broadly and establish the £2.20 per 10ml excise duty rate.
What are the new traveller rules?
New personal allowances also apply from 1 October 2026.
Travellers arriving in Great Britain can bring up to:
50ml of vaping liquid
for personal use without paying duty and tax.
Amounts above the allowance must be declared, with duty and tax payable on the full quantity.
Different rules apply to travellers entering Northern Ireland, depending on whether they arrive from an EU or non-EU country. Commercial imports are not covered by these personal allowances.
What should businesses do now?
Businesses involved in the UK vaping supply chain should review:
- HMRC approval requirements
- Vaping Products Duty calculations
- Import and customs procedures
- Duty-suspension arrangements
- Product and packaging records
- Duty stamp requirements
- Existing and new inventory
- Supply-chain reporting procedures
- Supplier compliance
- Stock transition deadlines
Businesses should also ensure their accounting and inventory systems can distinguish between duty-liable products and eligible existing stock.
Note
The new Vaping Products Duty is separate from VAT. VAT continues to apply to vaping products. The government expects Vaping Products Duty to raise more than £550 million annually by 2030–31, according to Office for Budget Responsibility forecasts.
Conclusion
The UK’s new Vaping Products Duty marks a significant change for businesses involved in manufacturing, importing, storing and selling vaping products.
From 1 October 2026, vaping liquids are subject to an excise duty of £2.20 per 10ml, while the new Vaping Duty Stamps Scheme introduces additional product-marking and traceability requirements.
Businesses should pay close attention to the transition dates, particularly 31 March 2027 and 1 April 2027, as the rules for existing unstamped stock change at the end of the transition period.
