The UK vape sector faces a major excise compliance change as the new Vaping Products Duty (VPD) and Vaping Duty Stamps (VDS) go live on 1 October 2026.
HMRC approval is strictly required prior to this date. You must apply for and receive official authorisation before you can legally manufacture or store vaping products, or purchase and affix duty stamps.
Failure to secure this prior approval will lead to penalties or sanctions including the seizure of goods, fines and even prison sentences.
For many businesses that sell, store, distribute or otherwise handle vaping products by wholesale or retail in the UK, this may be the first time they have had to consider excise duties.
What is the Vaping Products Duty?
VPD is a flat-rate excise duty of 44p on a 2ml pod or £2.20 on a 10ml refill of vaping liquid, regardless of whether it contains nicotine or not.
Manufacturers or importers of vaping products will have to pay the duty as soon as the products become liable, unless goods are held in duty suspension.
In addition, UK manufacturers will not be able to produce vaping products in a premises that has not been checked and approved by the HMRC as part of the registration process.
What are Vaping Duty Stamps?
From 1 October, all vaping products outside of duty suspension must carry a physical VDS. These stamps show that your product is legal and that the duty has been paid.
The VDS must seal the outermost packaging of the vaping product in such a way that it cannot be opened without visibly damaging the packaging or stamp and they cannot be reused.
You must ensure your packaging meets this requirement, however, vaping products with duty stamps affixed should not be released onto the open market before 1 October.
Each stamp will include a digital feature to be scanned at set points in the supply chain which will transmit necessary information directly to HMRC.
Alongside making these digital stamps available, HMRC will offer transitional stamps for purchase until 30 November 2026 but they cannot be used after 1 January 2027 and cannot be refunded, so only buy as many as are needed.
As both VPD and VDS apply across the whole supply chain, it is essential that you know both what your responsibilities are, and more importantly, how to implement strict due diligence procedures that will protect your business in the event that partners in the supply chain do not comply.
VPD and VDS apply to:
- manufacturers of vaping products in the UK
- overseas manufacturers selling into the UK
- customs or excises warehousekeepers
- an owner of vaping products held in a warehouse that has not been approved
- importers of vape products
- Northern Ireland businesses acquiring vapes from the EU
- wholesalers or retailers selling vapes in the UK
Key compliance takeaways
The window to ensure compliance is closing quickly; HMRC’s application process opened on 1 April 2026 but from 1 October it will be illegal to manufacture vaping products without active approval.
HMRC advises that businesses should allow at least 45 working days for the application to be processed before starting an activity that requires review.
Anyone working in or alongside the vaping sector is strongly encouraged to review their specific roles and responsibilities under the new regulations now.
HMRC’s processing clock is ticking – are you ready for the change or is your supply chain exposed?
The Chartered Institute of Export & International Trade runs a number of courses dedicated to learning about customs and excise for anyone who might be entering this regulatory field for the first time or is looking to brush up on their knowledge.
