UK Vaping Products Duty Explained: What Does it Mean for Businesses?

In 2024, the UK government confirmed a new excise duty on vaping products and has been planning, consulting, and drafting the rules for implementation on 1 October 2026.

To understand how it works, it’s important to distinguish between the official policy, how it’s commonly described, and how compliance will be enforced:

• Vaping Products Duty (VPD) – the official, government term for the tax applied to vaping products when they’re manufactured or imported.
• Vape Tax – A commonly used, informal term for Vaping Products Duty (VPD), often used by vapers when referring to price increases.
• Vaping Duty Stamps (VDS) – the labels that prove the tax has been paid and the product is compliant.

For this guide, we’ll refer to it as the Vaping Products Duty, or VPD.

The commercial impact will be felt throughout the supply chain, from manufacturers and importers to distributors, wholesalers, retailers, and consumers.

As a UK vape manufacturer and importer, we’ve created this guide to explain how the new duty affects you and what it means in practical terms.

If you’re a vaper, check out our Vape Tax Guide for Vapers for a clear, simple breakdown of what you need to know.

Why Has the VPD Been Introduced?

While debate continues about the wider rationale, the government’s official policy objectives are:

• Reduce the affordability and appeal of vaping for young people and non-smokers
• Maintain the incentive for smokers to switch to less harmful alternatives
• Simplify calculations, reporting, and compliance for businesses and HMRC
• Align the UK with international excise duty practices
  

Vaping Products Duty (VPD) – What is It?

VPD is a tax applied to all vaping liquids, nicotine-containing or nicotine-free, that are designed to be vaped. This includes commercially produced liquids and those mixed from base ingredients like:

• Propylene Glycol (PG)
• Vegetable Glycerine (VG)
• Flavourings

Flat rate: £0.22 per 1ml of liquid (so a 10ml bottle carries £2.20 tax).
Not covered: Devices, hardware, or accessories.

What this means for retailers, wholesalers, and distributors:

• You won’t pay duty directly if you buy duty-paid stock from an approved UK manufacturer or importer such as IVG.
• Your cost price and margins will reflect the duty, so stock planning and pricing decisions need to take this into account.

Can You Get Out of Paying VPD?

Short answer: no. The new Vaping Products Duty applies to all vaping liquids, nicotine or nicotine-free. There aren’t any exemptions for retailers, wholesalers, or distributors. 

Vaping Duty Stamps: What Are They?

Vaping duty stamps are the official mark that a product is legal in the UK. For retailers, wholesalers, and distributors, you don’t apply for these yourself, but you do need to make sure the stock you buy has them.

What Do They Look Like?

Vaping duty stamps are small, secure labels attached to the outer retail packaging (either the box or bottle). They are:

• Rectangular
• 18 mm wide × 42 mm long
• Made from bespoke, secure paper designed to prevent tampering
• Supplied in two formats: Wet (pre-glued), Dry (unglued)
  

What are the rules?

• All products that enter the UK must have a duty stamp attached, unless they’re stored in duty suspension.
• Duty stamps should be securely attached to the outer packaging, box, or bottle.
• From 1 April 2027, any vaping product outside duty suspension must have a duty stamp, no exceptions.
• Stamps may include a digital feature scanned through the supply chain to confirm authenticity.

📖 Definition: Duty suspension lets large manufacturers/importers store vaping products in approved HMRC premises without paying tax until sale. It’s unlikely to affect retailers, wholesalers, or distributors.

Types of Vaping Duty Stamp

There are two types of vaping duty stamps you need to look out for when buying stock:

1. Transitional Vaping Duty Stamps (TDS)

• Simpler stamps are designed to help businesses manage stock ahead of the new rules.
• Purchase window: 1 April – 31 August 2026.
• Cannot be affixed to products after 1 October 2026.
• Release/import: Stock cannot enter the market or leave duty suspension until 1 October 2026.
• How to recognise: Physical stamp only, no digital scanning feature.

2. Digital Duty Stamps (DDS)

• Features a data matrix digital feature that must be scanned at key points in the supply chain so HMRC can track the products and who is responsible.
• Purchase window: 1 September 2026 onwards.
• Release/import: Stock cannot enter the market or leave duty suspension until 1 October 2026.
• How to recognise: Same size/shape as transitional stamps, but with the digital feature (QR code).

Stamp Aggregation

Aggregation is grouping products with individual stamps under one single aggregate code, allowing multiple products to move through the supply chain more quickly. This could save you time, but the government has yet to release any more information.

Who Pays the VPD?

🔑 Key Takeaway: Direct payment usually sits with manufacturers and importers, but everyone else feels the commercial impact through pricing, margins, and stock planning.

Buying UK-Made Vaping Products: What You Need to Know

If you buy vaping products from UK-based manufacturers, here’s what to look out for: 

• HMRC manufacturing approval – it will be illegal to manufacture vaping products in the UK from 1 October 2026 without HMRC approval. To gain approval, manufacturers must apply under the Vaping Products Duty.
• HMRC selling approval – it will be illegal to release vaping products into the UK market from 1 October 2026 without a vaping duty stamp. To gain approval, businesses must apply through the Vaping Duty Stamp Scheme.

The government will release more information on how to apply before 1 April 2026. Always check for proof that your manufacturer or supplier has both levels of approval before buying any vaping products from them.

Buying Overseas Vaping Products: What You Need to Know

If you buy vaping products from overseas manufacturers, here’s what to look out for:

• Duty stamps – like UK-made products, from 1 October 2026, no vaping product can legally be sold in the UK without a vaping duty stamp, unless it’s in an approved duty-suspension warehouse. Always check that your supplier has these in place. 
• UK representative – Overseas manufacturers must have a UK representative approved by HMRC to handle duty stamps. If they don’t, the importer must make sure the stamps are applied before the products leave customs or duty-suspended storage.
• Risk check – If stamps are missing or invalid, stock can be seized, fines could apply, and your business could be negatively affected.
• Duty is usually already paid – When buying from a compliant manufacturer like IVG, the tax is included in the price. You won’t pay twice.
• Ask the right questions – A quick check now could save a lot of headaches later.

✅ Tip: Always check with your supplier which method is being used and confirm that every product will have the duty stamp. It keeps your business compliant and avoids fines or stock seizure.

Non-Compliance and Penalties

You don’t need permission from HMRC to sell vaping products in the UK unless you’re manufacturing or storing products in duty suspension. However, it will be an offence to:

• Sell products without a stamp
• Tamper, forge or attach counterfeit stamps
• Alter duty stamps after issue
• Affix invalid stamps to vaping products or provide counterfeit documents
• Fail to comply with vaping duty stamp rules

Here are some of the ways you could be impacted if you do:

• Large fines and possible prison sentences in serious cases
• Seizing of legitimate and illegitimate stock
• Civil and criminal investigations

If any of the stamps on your products are compromised, speak to your supplier. Do not sell them, as you might be penalised.

VPD Timeline: Key Dates for Your Diary

By 1 April 2026

• Manufacturers, importers, warehousekeepers and UK representatives can apply for Vaping Products Duty (VPD) approval and Vaping Duty Stamps Scheme approval.
• What this means for you: Your suppliers should already be preparing approvals; this is the point to start asking questions.

1 April – 31 August 2026

• Transitional Vaping Duty Stamps (TDS) are available to purchase.
• Stamps can be applied to products, but must remain in duty suspension.

1 September 2026

• Digital Duty Stamps (DDS) are now available to buy.
• Stamps can be applied, but must remain in duty suspension.

1 October 2026

• Vaping Products Duty goes live.
• Products with either transitional or digital duty stamps can now be imported into the UK or released from duty suspension.
• It becomes illegal to release unstamped vaping products onto the UK market.

1 April 2027

• All vaping products outside duty suspension must carry a vaping duty stamp, regardless of when they were produced.
  

Next Steps: What Retailers, Wholesalers & Distributors

You don’t need to register for VPD or duty stamps yourself, but you do need to protect your business. Here’s how.

What to do now

• Speak to your suppliers and ask how they’re preparing for VPD and duty stamps.
• Confirm whether they are HMRC-approved manufacturers or importers and using a UK representative (if overseas).
• Start factoring duty-inflated pricing into future margin planning.

What to do before April 2026

• Ask suppliers when they plan to apply for approvals and whether they intend to use transitional stamps, digital stamps, or both.
• Review contracts and supply terms to ensure compliance responsibility is clear.

What to do before October 2026

• Only place orders with suppliers who can confirm duty has been paid. Stamps will be applied before release.
• Avoid buying stock with unclear stamping or duty status; this is where seizure risk sits.

Ongoing best practice

• Keep records showing your products were purchased duty-paid and stamped.
• Be cautious with grey-market imports and heavily discounted overseas stock
• If in doubt, ask suppliers how their stamps are scanned and tracked with HMRC.

🔑 Key Takeaway: You don’t need to become a tax expert, but you need to buy from suppliers who are.

Become an IVG Stockist Today

With Vaping Products Duty (VPD) coming into force, choosing the right supplier has never been more important. When you stock IVG, you’re working with a UK manufacturer and importer that’s fully prepared for the new legislation, so you can focus on selling with confidence.

Why stock IVG?

• Fully compliant products – All IVG products will meet UK regulations ahead of the VPD deadline.
• Duty-paid stock – Vaping Products Duty (VPD) will be accounted for in our pricing.
• Duty-stamped products – All applicable products will carry the correct Vaping Duty Stamps (VDS).
• Reliable supply chain – No uncertainty around approvals, imports, or compliance.
• Trusted UK brand – Proven performance with strong sell-through across retail. 

👉 Become an IVG stockist today and future-proof your range ahead of October 2026.