A new excise duty on vaping products came into force on 1 October 2026. Vaping Products Duty (VPD) applies to vaping liquids manufactured in, or imported into, the UK, whether or not they contain nicotine.

The duty is charged at £2.20 per 10ml of vaping liquid. It is paid by manufacturers, importers and certain wholesalers, although businesses may choose to pass the cost on to retailers and consumers. Vaping products kept in approved warehouses can be held without paying the duty until they are released for sale.

The introduction of VPD is accompanied by a new Vaping Duty Stamps Scheme. Vaping products manufactured or imported from 1 October 2026 must carry a duty stamp on their retail packaging. Transitional stamps without digital functionality can be used until 31 December 2026, with digitally enabled stamps becoming mandatory for new products from 1 January 2027. The stamps are intended to improve traceability and help HMRC and other enforcement agencies tackle illicit sales.

A six-month transitional grace period applies to existing eligible stock. Wholesalers and retailers can continue to sell unstamped, non-duty-liable stock until 31 March 2027. From 1 April 2027, all vaping products sold in the UK must carry a valid vaping duty stamp.

New personal allowance rules also apply to travellers. Those arriving in Great Britain can bring up to 50ml of vaping liquid for personal use without paying duty or tax. Amounts above this must be declared, with duty and tax payable on the full quantity.

The government expects VPD to raise more than £550 million a year by 2030-31. The new duty was first announced at Spring Budget 2024 and then confirmed at Autumn Budget 2024.

Businesses in the vaping sector are reminded that the new Vaping Products Duty and the Vaping Duty Stamps Scheme will take effect from 1 October 2026. HMRC is urging manufacturers, importers, wholesalers and retailers to make sure they are ready for the introduction of the Vaping Products Duty and the associated Vaping Duty Stamps Scheme.

Vaping Products Duty is intended to form part of the government's wider measures to tackle youth vaping, improve public health and support its ambition to create a smoke-free generation. The duty is expected to raise more than £550 million a year by 2030–31.

The new rules will affect the supply chain in different ways. Businesses that manufacture vaping products or handle products under duty suspension need to ensure they have the necessary HMRC approvals before the new regime begins. Retailers and wholesalers should check with their suppliers that the products they stock meet the new requirements.

UK representatives and warehousekeepers can buy transitional duty stamps until 30 November 2026 and affix them until 31 December 2026. From 1 January 2027, only digital duty stamps can be affixed to vaping products. Retailers and wholesalers can also continue to sell eligible unstamped vaping products already held before the new rules take effect until 31 March 2027. This gives businesses some time to adjust their stock and supply arrangements. From 1 April 2027 all vaping products sold or supplied in the UK must carry a valid stamp.

Consumers will also start to see changes to vaping product packaging from October. New rules will apply to travellers bringing vaping products into the UK for personal use from 1 October 2026. There are different rules for travellers entering Great Britain and Northern Ireland.

HMRC has warned that businesses failing to comply with the new requirements could face civil or criminal sanctions.