United Kingdom introduces a new flat-rate excise duty of £2.20 per 10ml on vaping liquids alongside a mandatory duty stamps scheme starting on October 1, 2026.
The UK is introducing a flat vaping tax of £2.20 per 10ml and a mandatory duty-stamp system from Oct. 1, 2026.
The charge will apply to vaping liquids made in the UK or imported into it, whether they contain nicotine or not. It covers refill bottles, liquid-filled pods and other liquids intended for use in a vaping device, except products classed as medical or tobacco products.1
The measures are intended to support the government’s plans for a smoke-free generation, reduce youth vaping and help adult smokers leave tobacco behind. Manufacturers and importers will pay the new excise duty, while businesses handling the products will also face approval, record-keeping and stamp costs.
The Oct. 1 duty point
The change comes after vaping products were taxed at no excise rate. Vaping Products Duty, or VPD, will become part of the existing excise system under the Customs and Excise Management Act 1979.2 That brings liquid used in vape products into the same broad tax framework as alcohol and tobacco, although the calculation is different.
VPD per pack, flat £2.20 per 10ml
The new rate is £2.20 per 10ml of liquid, regardless of its nicotine content. A 10ml refill bottle therefore carries £2.20 in duty, while a 2ml pod carries 44 pence.3 The charge is based on volume, so a higher-nicotine liquid and a nicotine-free liquid of the same size attract the same tax.
For manufacturers, the duty becomes payable when products are released for consumption in the UK. Importers face the charge when imported goods become liable to duty, while goods held under duty suspension are taxed when they leave that arrangement.3 The timing makes customs and warehouse status central to the cash cost of each shipment.
That point matters for goods entering the country before the start date but remaining in a customs or excise warehouse. Payment can be deferred while the products stay under suspension, but the liability is triggered when they move into the UK market. The system therefore separates physical arrival from the moment at which the tax must be paid.
Stamps on imported liquids
The tax will operate alongside the Vaping Duty Stamps scheme, known as VDS. Every vaping product manufactured or imported into the UK must have a stamp attached, although goods entering approved duty-suspension premises can move without one at that stage.4 The stamp is designed to show that the product is legal and to help HM Revenue and Customs track it.
What the stamp scheme requires
The immediate obligation is to put a valid vaping duty stamp on products released for sale in the UK. Approved manufacturers, importers, warehousekeepers and UK representatives of overseas manufacturers can obtain the stamps. The scheme also requires approval before a business can attach them to retail packaging.
The physical labels will be rectangular, measuring 18mm by 42mm, and made from secure paper. They will be available in wet, pre-glued form and dry, unglued form, with minimum orders of 1,000 stamps for both reels and boxes.3 That minimum creates a practical cost and stock issue for smaller businesses handling limited product runs.
The labels will also carry a data-matrix feature that must be scanned at set points in the supply chain. The responsible business at each point will upload information so HMRC can check where the products have been and who is responsible for them.3 The stamp is therefore both a tax mark on the package and a digital control on distribution.
Overseas manufacturers and warehouses
The rules reach overseas production through the UK importer or representative. From Oct. 1, it will be unlawful to import an overseas manufacturer’s vaping products without stamps unless the goods are being sent to HMRC-approved premises under duty suspension.3 The distinction gives importers a choice between dealing with the duty and stamps before release or using an approved suspension route.
Who carries the responsibility
An overseas manufacturer that wants to send already-stamped products to Britain must appoint an approved UK representative. That representative can apply to join the stamp scheme, order the labels and send them to the overseas manufacturer for attachment to the packaging. The overseas business pays the cost of the stamps when they are ordered.
The UK representative is legally and financially responsible for the stamps. Approval can take at least 45 working days while HMRC carries out its checks, making the representative an important link in the import chain.3 The arrangement places formal responsibility in the UK even when the liquid is manufactured and packed abroad.
Warehouses also become part of the approval system. A business must obtain approval for premises where vaping products are stored before the duty is paid, and HMRC will check that the sites are safe and secure enough for excise goods.3 Mixing non-duty-paid liquids to make a vape product will count as manufacture, even if the result is not intended for commercial sale.
The transition to digital control
The stamp system has a staged introduction rather than a single switch. Businesses can buy transitional stamps until Nov. 30, 2026 and attach them until Dec. 31, 2026. Digital stamps became available on Sept. 1, 2026, but stamped products cannot be released to the market before Oct. 1.5
Staged stamping, staged deadlines
| Date | Who it catches | What falls due |
|---|---|---|
| 1 Apr 2026 | Manufacturers, warehousekeepers, overseas reps | Stamp-scheme applications open; allow 45 working days |
| 1 Sep 2026 | All stamp users | Digital stamps become available |
| 1 Oct 2026 | All products released to market | Duty begins; stamped release only |
| 30 Nov 2026 | Businesses buying transitional stamps | Last day to purchase transitional stamps |
| 1 Jan 2027 | All stamping | Digital stamps only may be affixed |
| 31 Mar 2027 | Retailers and wholesalers | Last day to sell eligible unstamped UK stock |
Retailers and wholesalers can continue selling eligible unstamped stock already held in the UK until 31 March 2027. From the following day, every vaping product outside duty suspension must carry a valid stamp, regardless of when it was produced.5 This gives existing stock a limited clearance period but leaves the final compliance position tied to where goods are held.
From Jan. 1, 2027, only digital duty stamps can be affixed to vaping products. The change means businesses handling stock through the transition may have to manage physical transitional labels, physical or digital labels during the overlap, and digital-only stamping afterwards.5 Packaging and warehouse controls will therefore remain relevant after the duty itself begins.
The approval process started before the tax date. UK manufacturers, warehousekeepers and overseas manufacturers using UK representatives can apply for stamp-scheme approval from Apr. 1, 2026, and applicants are told to allow at least 45 working days before starting the relevant activity.3 The one-month warning issued by HMRC on Sept. 1 places the remaining preparation period under a tight deadline.
A new cost across the supply chain
The Treasury expects the duty to raise more than £550m a year by 2030-31.5 The charge will increase the cost of every taxable 10ml of liquid, while the stamp scheme adds approval, ordering, handling and scanning work. Whether those costs are passed on to consumers or absorbed by businesses is a commercial decision.
The scale of the new regime
The official impact assessment estimates about 200 vaping-product manufacturers and up to 750 importers and warehousekeepers will pay the new duty. It identifies one-off work such as learning the rules, registering and training staff, followed by continuing work to record the volume of products released for consumption.2 For importers, the tax calculation must therefore connect customs records with the product’s measured liquid volume.
Exporters have a possible route to recover duty paid on products later sent out of the UK. Under the excise drawback scheme, a business may reclaim the VPD if it provides evidence of export and proves that the attached duty stamps were destroyed.3 The requirement links the tax refund to both the movement of the goods and the removal of the UK tax mark.
Personal imports are treated separately from commercial shipments. HMRC plans to allow a small duty-free quantity of vaping products brought into the UK for personal use rather than resale, with the allowance to be published before Oct. 1.3 Different traveller rules will apply for Great Britain and Northern Ireland, adding another distinction between consumer baggage and goods entering the trade system.
The enforcement powers are designed to cover more than unpaid tax. The stamp scheme provides for forfeiture of goods, civil penalties and criminal offences where there is wrongdoing.4 That gives HMRC several ways to deal with unstamped or improperly handled products, from taking the goods to pursuing financial or criminal consequences.
The policy has moved from announcement to operation over a two-year timetable. The duty was announced at the Spring Budget 2024, confirmed at the Autumn Budget 2024 and changed from proposed tiered rates to one flat rate after consultation.2 The simpler calculation reduces the need to distinguish nicotine levels, but it does not remove the separate approval and stamp controls.
For the trade, the key dates now divide the change into three stages: the duty and initial stamp system on Oct. 1, 2026; the end of the unstamped-stock sale period on Mar. 31, 2027; and digital-only stamping from Jan. 1, 2027. The first date starts the tax, while the later dates determine which packaging and stock can still move. The result is a continuing customs and excise change rather than a single launch-day adjustment.
Sources
- ↩ Introduction of Vaping Products Duty from 1 October 2026 — publications / introduction of vaping products duty from … https://www.gov.uk/government/publications/introduction-of-vaping-products-duty-from-1-october-2026
- ↩ Introduction of Vaping Products Duty from 1 October 2026 — introduction of vaping products duty from 1 october 2026 … https://www.gov.uk/government/publications/introduction-of-vaping-products-duty-from-1-october-2026/introduction-of-vaping-products-duty-from-1-october-2026
- ↩ Prepare for Vaping Products Duty and Vaping Duty Stamps Scheme https://www.gov.uk/government/publications/preparing-for-vaping-products-duty-and-the-vaping-duty-stamps-scheme/prepare-for-vaping-products-duty-and-the-vaping-duty-stamps-scheme
- ↩ Vaping Duty Stamps Scheme Information https://www.gov.uk/government/publications/introduction-of-vaping-duty-stamps-scheme-on-1-october-2026/vaping-duty-stamps-scheme-information
- ↩ One Month Until Vaping Products Duty and Stamps Scheme Start https://www.gov.uk/government/news/one-month-until-vaping-products-duty-and-the-vaping-duty-stamps-scheme-start