Key Points
● UK Government confirms Vaping Products Duty (VPD) and Stamps Scheme (VDS) from October 1, 2026.
● Flat rate of £2.20 per 10ml for all vaping liquids.
● Businesses must register from April 1, 2026; non-compliance could result in penalties or prosecution.
● Duty stamps required from October 2026; unstamped products banned from April 2027.
2Firsts, October 1, 2025 – HM Revenue & Customs (HMRC) today officially announced that the United Kingdom will implement a Vaping Products Duty (VPD) and a Vaping Duty Stamps (VDS) scheme starting October 1, 2026. According to a press release received by 2Firsts from HMRC, this marks the formal confirmation of the policy, moving it into the implementation phase.
The new excise duty will apply to all vaping liquids sold or supplied in the UK, at a flat rate of £2.20 per 10ml, regardless of nicotine content. In addition, all retail units will be required to carry a vaping duty stamp. Registration for approval will open on April 1, 2026, for manufacturers, importers, warehousekeepers, and UK representatives of overseas manufacturers. HMRC stated that the approval process could take up to 45 working days, urging businesses to prepare early to avoid disruption.
The duty stamps scheme will take effect on October 1, 2026, with a six-month grace period allowing existing stock to continue being sold. From April 1, 2027, all vaping products must carry a duty stamp, and the sale of unstamped products will be prohibited. Non-compliance could result in civil or criminal penalties, including fines and prosecution.
According to the HMRC press release received by 2Firsts, 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.”
The measure is part of the UK Government’s Plan for Change, aimed at creating a smoke-free generation and addressing youth vaping. Alongside HMRC’s excise reforms, the Department of Health and Social Care (DHSC) and the Department for Environment, Food & Rural Affairs (Defra) are advancing complementary policies. These include the ban on single-use vapes effective from June 1, 2025, and potential future restrictions on vape flavours and vape-free places under the Tobacco and Vapes Bill, which is currently progressing through Parliament.
On traditional tobacco, the UK Government has also adjusted cigarette duty. According to reports by Reuters (March, 2024)and the Financial Times (October, 2024), the Chancellor announced increases in cigarette duty in the Budget, with a further rise planned for October 2026, to maintain alignment with the vaping duty.
HMRC is urging affected businesses to take action now to ensure compliance and continuity of operations. Further operational details are expected to be published in 2026.
2Firsts will continue to follow and report on this policy development.
The cover image is from the HMRC press notice
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