HM Revenue and Customs (HMRC) is reminding manufacturers, importers and warehouses involved with vaping products to prepare for registration for Vaping Products Duty (VPD) and the Vaping Duty Stamps (VDS) Scheme, which comes in on from 1 April this year.
Early preparation is essential to avoid disruption to operations when the new regime goes live, HMRC advises.
To prepare for the Government’s smoke free ambitions, a new excise duty on vaping products is being introduced from October 2026, alongside tobacco duty increases to incentivise smokers to choose vaping over smoking.
From 1 October, VPD will apply to all vaping liquids which are sold or supplied in the UK at a flat rate of £2.20 per 10ml, regardless of nicotine content. Duty stamps must also be affixed to the retail packaging of individual vaping products for the UK market.
A six‑month grace period will apply for older stock already in retail channels, but from 1 April 2027 all UK vaping products outside duty suspension must carry a stamp, with non‑compliance possibly resulting in civil or criminal sanctions.
HMRC completed a competitive procurement process and has appointed Cartor Security Printers Limited as the vaping duty stamps supplier under a concession contract.
Businesses will purchase duty stamps directly from them using the supplier’s ordering and data‑capture system, which provides authentication and traceability features. This appointment delivers HMRC’s commitment to ensure stakeholders can approach the legitimate stamp supplier ahead of the scheme’s launch.
The stamps will only be supplied to approved individuals, manufacturers and importers. They must have HMRC’s approval first to use UK duty stamps on vaping products.
Rachel Nixon, HMRC’s director of indirect tax, said: “We’re working closely with the vaping sector on this new excise duty ahead of its introduction.
“From 1 April this year, manufacturers, importers and warehouse keepers must apply for approval to continue supplying vaping products in the UK. This gives them six months to obtain our approval before the new duty and duty stamps go live.
“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.”
Duty stamps must be applied before release for consumption and will combine physical security features with digital elements for traceability and authentication, with associated data recorded in the supplier’s system.
HMRC has also published a stakeholder communications pack, available here, to help organisations share important information amongst their networks about preparing for 1 April and further milestones.
Following consultation, the government confirmed introducing the Vaping Duty Stamps Scheme to complement HMRC compliance activity by enabling quick identification of non‑duty‑paid products and strengthening supply‑chain management.
Treasury analysis indicates the new vaping duty is expected to raise more than £550m a year by 2030-31 to fund vital public services like the NHS.
You can now secure your tickets to the Convenience Awards 2026!
Join us on 11 March in Liverpool to celebrate the entire convenience community.
See this year’s finalists and book your seat here.
No comments yet