There is now less than a year until the UK Government introduces Vaping Products
Duty (VPD) and vaping duty stamps (VDS) on 1 October 2026.
VPD, a new excise duty, will apply to all vaping liquids (or e-liquids) sold or
supplied in the UK, at a flat rate of £2.20 per 10ml and VDS must be attached to
individual vaping products.
From 1 April 2026, any business involved in the manufacture or importation of
vaping products, or storage of duty-suspended vaping products, must apply for
approval from HMRC. This will enable them to continue operating lawfully in the
UK once VPD and the VDS Scheme come into effect.
With just six months until approval registration opens, HMRC is urging all
affected businesses to prepare now to avoid disruption as approval may take up
to 45 working days.
What this means for businesses:
- UK manufacturers of vaping products must apply for approval for both VPD and
the VDS Scheme.
- Warehouse keepers will be able to apply for VDS Scheme approval directly.
- Overseas manufacturers must appoint a UK representative to apply for the VDS
Scheme on their behalf.
- Importers will be required to pay the new duty. They must also register for
VPD and the VDS Scheme if they are acting as a UK representative for an
overseas manufacturer.
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.'
Internet link: HMRC press release