10 Oct 2025
There is now less than a year until the UK government introduces a Vaping Products Duty (VPD) and vaping duty stamps (VDS) on 1 October 2026.
The VPD, a new excise duty, will apply to all vaping liquids (or e-liquids) sold or supplied in the UK at a flat rate of £2.20 per 10ml and VDS must be attached to individual vaping products.
From 1 April 2026, any business involved in the manufacture or importation of vaping products or storage of duty-suspended vaping products must apply for approval from HMRC. This will enable them to continue operating lawfully in the UK once the VPD and the VDS Scheme come into effect.
With just six months until approval registration opens, HMRC is urging all affected businesses to prepare now to avoid disruption as approval may take up to 45 working days.
What this means for businesses:
- UK manufacturers of vaping products must apply for approval for both the VPD and the VDS Scheme.
- Warehouse keepers will be able to 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 required to pay the new duty. They must also register for the VPD and the VDS Scheme if they are acting as a UK representative for an overseas manufacturer.
Rachel Nixon, HMRC's Director of Indirect Tax, said: 'We are working closely with the vaping sector ahead of these changes. Businesses are encouraged to visit GOV.UK and search 'prepare for vaping duty' to access guidance and updates. Early preparation is essential to ensure a smooth transition and to avoid disruption to operations.'