HM Revenue and Customs has issued a stark warning to the vaping industry, urging all businesses to begin immediate preparations for the forthcoming Vaping Products Duty, which will become mandatory across the United Kingdom. The new regulatory framework represents a significant shift in how vaping products are taxed and monitored, with a phased implementation schedule designed to give the sector time to adapt.
Key Dates for Business Compliance
The timeline for the new duty is clear and non-negotiable. Registration for both the Vaping Products Duty and the accompanying Vaping Duty Stamps Scheme will officially open on the 1st of April, 2026. This provides a full year's notice before the financial levy takes effect. HMRC has explicitly stated that manufacturing, importing, and storage businesses should start their preparatory work without delay to ensure a smooth transition.
Financial and Regulatory Implementation
The Vaping Products Duty itself will apply from the 1st of October, 2026. It will be charged at a flat rate of £2.20 per 10ml of vaping liquid, a rule that applies uniformly regardless of whether the liquid contains nicotine or is nicotine-free. This standardised approach is intended to simplify the tax structure for all products sold or supplied within the UK market.
Concurrently, from October 2026, duty stamps must be physically affixed to the retail packaging of individual vaping products destined for UK consumers. However, a critical deadline follows: from the 1st of April, 2027, the presence of a valid duty stamp on all vaping products outside of duty suspension will become absolutely mandatory. A six-month grace period will be in effect for older stock already in retail channels, but after April 2027, non-compliance could lead to serious civil or criminal sanctions.
Official Guidance and Business Requirements
Rachel Nixon, HMRC’s Director of Indirect Tax, emphasised the department's collaborative approach. "We are working closely with the vaping sector on this new excise duty ahead of its introduction," she stated. From April 2026, manufacturers, importers, and warehousekeepers must apply to HMRC for formal approval to continue supplying vaping products in the UK. This six-month window is crucial for obtaining necessary approvals before the new systems go live.
Nixon directed businesses to official resources, noting, "GOV.UK guidance sets out everything businesses need to know. Searching ‘vaping duty’ is the best place to start. Early preparation is essential to ensure a smooth transition and to avoid disruption to operations."
Specific Obligations for Different Business Types
The application process varies depending on a company's role in the supply chain:
- UK Manufacturers: Must apply for approval for both the Vaping Products Duty and the VDS Scheme.
- Warehousekeepers: May apply directly for VDS Scheme approval.
- Overseas Manufacturers: Are required to appoint a UK representative to apply for the VDS Scheme on their behalf.
- Importers: Will be directly liable for the new duty and must register, especially if they are acting as the UK representative for an overseas manufacturer.
Security and Traceability of Duty Stamps
The new duty stamps are not merely a fiscal formality; they are a sophisticated anti-fraud measure. Stamps must be applied to products before they are released for consumption. Each stamp will combine advanced physical security features with digital elements to enable full traceability and authentication. Associated data for each stamped product must be meticulously recorded within the supplier's own systems, creating a verifiable chain of custody from production to point of sale.
This comprehensive new regime marks a decisive step by UK authorities to bring the vaping industry under a formalised excise duty structure, aligning it more closely with other regulated goods. The message from HMRC is unequivocal: preparation cannot start too soon.
