Key Points
- The UK government will implement a tax on e-cigarette products (VPD) starting from October 1, 2026, and will simultaneously introduce a tax stamp scheme for e-cigarettes (VDS).
- All e-cigarette products manufactured or imported in the UK must bear a tax stamp, which will only be issued to approved manufacturers and importers.
- Businesses must apply for approval from Her Majesty's Revenue and Customs (HMRC) starting from April 1, 2026. A transitional tax stamp system will be introduced before the official implementation to assist businesses during the transition.
- Violations will result in confiscated goods, civil penalties, and criminal sanctions. If criminal activities are involved, courts may prohibit the premises from continuing to operate as an e-cigarette shop.
2Firsts, November 27, 2025 — The UK government has announced the implementation of a Vaping Duty Stamps (VDS) scheme from October 1, 2026, to support the upcoming Vaping Products Duty (VPD) introduced in the Autumn Budget 2024.
Under the new measure, all vaping products manufactured or imported into the UK must carry a duty stamp issued only to approved manufacturers and importers. Businesses must apply for approval from HM Revenue and Customs (HMRC) starting April 1, 2026.
The VDS will allow authorities and retailers to easily identify non-duty-paid or illicit vaping products, and will include enforcement mechanisms such as forfeiture, civil penalties, and criminal sanctions. Courts may also issue orders banning premises from operating as vape shops if they are involved in criminal trading.
HMRC will have expanded information-sharing powers with other public authorities to coordinate enforcement actions.
According to the UK Treasury, the initiative aims to reduce the affordability and appeal of vaping products, particularly among youth and non-smokers, while maintaining the incentive for smokers to switch to less harmful alternatives.
The scheme forms part of a broader regulatory framework for the vaping industry, to ensure fair competition, effective tax collection, and public health protection. Primary legislation will be included in the Finance Bill 2025-26, with secondary regulations expected in March 2026.
Image source: official website of the UK government
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