Vaping Products Duty: The new regime
From October 2026, businesses involved in producing, importing, storing or selling vaping products will face a significant regulatory reform with the introduction of Vaping Products Duty (VPD) and the Vaping Duty Stamps (VDS) Scheme.
Recently outlined by HMRC, the new regime forms part of the Government’s wider plan to reduce youth vaping and move towards a smoke-free generation.
While the policy objectives are clear, the practical impact on businesses across the vaping supply chain, including new costs and reduced consumer appetite, is likely to be substantial.
What is Vaping Products Duty?
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 whether the liquid contains nicotine.
This means that non-nicotine products will no longer sit outside the duty net.
Under the new Vaping Duty Stamps Scheme, from October 2026, duty stamps must also be affixed to the retail packaging of individual vaping products for the UK market.
A six-month grace period will apply to existing stock already in retail channels, but from 1 April 2027, all vaping products outside duty suspension must carry a stamp.
Failure to comply could result in civil or criminal sanctions for those involved.
How to register for Vaping Products Duty
Registration for both VPD and the VDS Scheme opens on 1 April 2026 and in its most recent notice HMRC has been clear that businesses should start preparing now.
Manufacturers, importers and warehouse keepers will need HMRC approval to continue supplying vaping products in the UK.
Overseas manufacturers must appoint a UK representative, with importers remaining liable for the duty.
Be aware that approvals can take upwards of 45 working days, so leaving registration until the last-minute risks disruption to trading.
HMRC has appointed Cartor Security Printers Limited as the sole supplier of vaping duty stamps.
Stamps will only be supplied to businesses that have received the necessary approvals, adding another operational step that businesses must plan for.
The impact on vaping businesses
The introduction of a flat-rate excise duty will inevitably increase costs across the sector.
Businesses will need to consider how this affects pricing, margins, stock management and cash flow.
The requirement to apply duty stamps before release for consumption also adds an extra layer of compliance and administrative burden.
Treasury analysis suggests the duty is expected to raise more than £550 million per year by 2030/31, demonstrating how firmly this change is embedded in the UK’s future tax regime.
For those further down the supply chain, such as retailers, are also likely to see the costs of products increase, whilst the additional expense is likely to drive some consumers away from vapes, as per the Government’s plans.
Why early planning matters
For businesses operating in the vaping market, this is not a change that can be absorbed quietly in the background.
Registration, operational changes, pricing decisions and supply-chain processes all need careful thought well in advance of October 2026.
Early planning will be key to avoiding disruption, managing costs and ensuring compliance.
If you operate within the vaping industry and are concerned about the implications of VPS and the VDS Scheme, please get in touch.
