Vaping Duty Stamps scheme information
Published 26 November 2025
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Who is likely to be affected
UK manufacturers of vaping products, importers of vaping products, retailers and wholesalers selling vaping products, packagers and distributors, stakeholders in the nicotine supply chain and consumers who buy and/or use vaping products.
General description of the measure
The government announced the introduction of a new Vaping Products Duty (VPD) at Autumn Budget 2024, to be implemented from 1 October 2026. To support the effective implementation and enforcement of VPD, a Vaping Duty Stamps (VDS) scheme will also be brought into operation from 1 October 2026.
VDS requires all vaping products manufactured or imported into the UK to have a duty stamp affixed to them. Duty stamps will only be issued to approved individuals, manufacturers and importers. From 1 April 2026, businesses must apply for approval from HMRC to affix duty stamps from 1 October 2026.
A transitional duty stamp will be made available to support businesses through the interim period before VDS are introduced. Further information will be made available in 2026.
The measure includes provision for enforcement including forfeiture of goods, new civil penalties and criminal offences to provide a range of options to officers dealing with wrongdoing under the VDS scheme. Where there has been criminal dealing in stamps, a court may make an order banning the premises from being used as a vape shop. This is to prevent organised crime groups from utilising the same premises with different personnel or a new company.
The measure gives HMRC new information sharing powers to share information with other public authorities with enforcement responsibilities relating to vaping products.
Policy objective
The government is committed to reducing the affordability and appeal of vaping products, particularly among young people and non-smokers, while maintaining the financial incentive for smokers to switch to less harmful alternatives.
VDS enables enforcement bodies and industry to quickly identify products that are non-duty paid and will enable retailers and consumers to identify illicit products. VDS will help combat VPD non-compliance, by requiring all vaping products manufactured or imported into the UK to have a duty stamp affixed to final retail packaging.
Requiring an approval from HMRC to purchase VDS and limiting the supply of duty stamps will increase oversight of the vaping market, reducing the risk of evasion of VPD and deter the sale of illicit vaping products.
This measure forms part of a broader strategy to regulate the vaping industry and protect public health, while ensuring fair competition and effective tax collection.
Background to the measure
At Spring Budget 2024, the introduction of a new excise duty on vaping products was announced, and a consultation was held on the design and structure of the duty. This was then confirmed at Autumn Budget 2024.
A consultation was launched to gather views on early proposals for a Vaping Duty Stamps scheme. This closed in December 2024. In May 2025, the government responded to this consultation confirming the introduction of the scheme.
Primary legislation is included in Finance Bill 2025-26. Secondary legislation is anticipated to be laid in March 2026 to set our further details.
Detailed proposal
Operative date
The VDS scheme will be open for approvals from 1 April 2026. It will be compulsory for stamps to be affixed from 1 October 2026, following the grant of Royal Assent to Finance Bill 2025-26.
Current law
There is currently no excise duty levied on vaping products. The Vaping Duty Stamps scheme will work alongside a new excise duty, Vaping Products Duty.
Proposed revisions
There are no revisions as this is measure supports a new excise duty.
Summary of impacts
Exchequer impact (£ million)
| 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 | 2030 to 2031 |
|---|---|---|---|---|---|
| — | +5 | +25 | +25 | +20 | +20 |
These figures are set out in Table 4.1 of Budget 2025 and have been certified by the Office for Budget Responsibility. More details can be found in the policy costings document published alongside Budget 2025.
Macroeconomic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
This measure will require vaping product manufacturers, importers and warehouse keepers to register for, operate and comply with the new VDS scheme. If manufacturers and importers choose to pass increased costs on to the consumer, this may have an impact on an estimated 5.1 million individuals who vape.
The measure will allow individuals, retailers and consumers to clearly identify legally compliant vaping products, reducing the risk of unknowingly purchasing or selling non-compliant items and supporting informed decision-making.
This measure is not expected to impact on family formation, stability, or breakdown.
This measure is not expected to impact individuals experience of dealing with HMRC as it does not change any processes or tax admin obligations.
Equalities impact
This measure does not have a direct impact on the consumers of vaping products and applies uniformly to all vaping products sold or supplied in the UK regardless of the demographic profile of the consumer or business owner. However, it is likely to have an indirect impact if manufacturers and importers choose to pass increased costs on to the consumer.
An individual may be affected by this measure regardless of their protected characteristics. Individuals from all protected groups are likely to be represented in the consumers of vaping products. If a protected group is overrepresented in this population, then it will be disproportionately impacted.
Males are estimated to be slightly overrepresented (55%) in the population that uses e-cigarettes on a daily or occasional basis, compared to their prevalence in the UK adult population (50%). People aged between 16-24, 25-34, and 35-49 are estimated to account for 20%, 22% and 25% of the daily/occasional e-cigarette user population and are overrepresented compared to the UK adult population (10%, 16% and 17% respectively).
HMRC does not currently hold data on other protected characteristics of individuals impacted by this measure and so cannot make an assessment of the impacts on those with shared protected characteristics .
By improving the traceability and legitimacy of products, the measure may indirectly support broader public health objectives aimed at reducing youth access to illicit vaping products.
Administrative impact on business including civil society organisations
The measure is expected to have a significant impact on an initially estimated population of 200 vaping product manufacturers and up to 750 importers and warehousekeepers. It will also impact a small number who choose to register as a UK duty stamp representatives. This measure will require this population to register for, operate, and comply with the new Vaping Duty Stamps scheme.
As this is a new scheme, there is some uncertainty about the size of the population. One-off costs will include businesses needing to familiarise themselves with their new obligations under the scheme, registering and being approved for the scheme, providing a business plan, adapting business processes, and training staff. Continuing costs will include purchasing duty stamps from an approved supplier, uploading data and scanning duty stamps for all products they produce or import. Further information regarding VPD can be found in the VPD Tax Information and Impact Notice.
| Estimated one-off impact on businesses (£ million) | |
|---|---|
| One-off impact | £ million |
| Costs | Negligible |
| Savings | — |
| Estimated continuing impact on administrative burden (£ million) | |
|---|---|
| Continuing average annual impact | £ million |
| Costs | 10 |
| Savings | — |
| Net impact on annual administrative burden | + 10 |
This measure is expected overall to impact businesses’ experience of dealing with HMRC as the new scheme requires additional tax administration tasks to be completed. To mitigate this HMRC will provide clear guidance and communications to advise of the changes and support businesses with the new requirements. HMRC maintains existing relationships with the vaping industry, with interactions likely to increase to support the introduction of the scheme as businesses prepare for their new obligations. While the scheme introduces new compliance requirements and associated costs, it is expected to enhance market integrity, support enforcement, and reduce illicit trade.
This measure is not expected to impact civil society organisations.
Operational impact (£ million) (HMRC or other)
HMRC will incur capital costs to develop IT systems that will administer the Vaping Duty Stamps scheme, including integration with platforms used by HMRC-approved suppliers. These costs are currently estimated to be £4 million to be spent between 2024-25 and 2026-27.
Operational running costs for stamp purchasing and data collection will be borne by the approved supplier.
Other impacts
Justice Impact Test
VPD will introduce several criminal offences with possible custodial sentences for non-compliance and civil penalties. The criminal offences in existing legislation for excise evasion and other fraudulent activity will apply as they do in other excise duties. There will also be civil penalties and criminal offences for failing to comply with VDS. A full Justice Impact Test has been completed, with the overall impact likely to be minimal.
Environmental
Other impacts have been considered, and none have been identified.
Monitoring and evaluation
The measure will be monitored and assessed alongside other measures in the government’s package for VPD.
Further advice
If you have any questions about this change, contact the Vaping Products Duty Policy Team: vapingproductsduty@hmrc.gov.uk.