Guidance

Prepare for Vaping Products Duty and the Vaping Duty Stamps Scheme

Published 30 July 2025

Who needs to read this briefing

You must read this briefing if you’re:

• a manufacturer of vaping products (including products made at home) based in the UK
• an overseas manufacturer of vaping products that you plan to send to the UK 
• a customs or excise warehousekeeper already approved by HMRC (if you want to apply or have already applied for approval from HMRC) 
• an owner of vaping products held in a warehouse which is not an approved customs or excise warehouse
• importing vaping products into the UK 
• acquiring vaping products from EU member states, if you’re a business in Northern Ireland
• selling vaping products by wholesale (selling directly to a business) or retail (selling directly to the customer) in the UK 

For Northern Ireland only, you should read this if you’re a:

• registered consignee 
• temporary registered consignee 
• tax representative

Purpose of this policy update

The government confirmed the introduction of Vaping Products Duty (VPD) in autumn 2024, and Vaping Duty Stamps (VDS) in spring 2025.

Vaping Products Duty is a new excise duty on vaping products. The duty applies to the vaping liquid (sometimes known as e-liquid).

All substances intended for vaping will be covered by Vaping Products Duty. This includes those made at home from ingredients such as:

• propylene glycol (PG)
• vegetable glycerine (VG)
• flavourings

Products will be liable for Vaping Products Duty whether the liquids contain nicotine or not.

Read the Vaping Products Duty consultation to find out more about the background, the consultation, and the responses received.

From 1 April 2026

From 1 April 2026 if you make or intend to make vaping products in the UK, you must apply for approval for Vaping Products Duty and the Vaping Duty Stamps Scheme.

It can take up to 45 working days for HMRC to complete their checks. You should apply as early as possible to make sure you have the necessary approval before 1 October 2026.

If you’re not approved by 1 October 2026 you cannot lawfully produce vaping products in the UK, and if you do, you will be subject to civil and criminal sanctions, potentially leading to prison sentences.

You must apply for approval as a single legal entity. This is when all parts of the business are controlled and managed by the same person or group of people jointly, and they’re treated as one business for legal and tax purposes.

If you submit a joint application, we’ll reject it.

If we approve your application, you’ll be able to buy vaping duty stamps from a specialist supplier chosen by us. We’ll tell you who the supplier is before 1 April 2026.

From 1 October 2026

From 1 October 2026, you must:

• pay Vaping Products Duty on vaping products
• attach a vaping duty stamp on all your retail packaging — in this instance, each individual vaping product
• continue paying VAT on vaping products

From 1 April 2027

From 1 April 2027, all vaping products outside of duty suspension in the UK must have a vaping duty stamp attached. You can find more information in the ‘Duty suspension’ section.

Paying Vaping Products Duty 

The rules for paying Vaping Products Duty will operate similar to other excise duties such as Alcohol Duty and Tobacco Products Duty.

If you make or bring vaping products into the UK, you’ll have to pay Vaping Products Duty as soon as the products become liable to the duty.

If the vaping products are held in duty suspension, Vaping Products Duty will need to be paid at the time the goods leave the duty suspension arrangements.

Vaping Products Duty will be set at a single flat rate of £2.20 for a 10ml bottle on all vaping liquid, for example: 

• a 2ml pod will be liable to 44 pence in duty — the calculation is 2 × 22 pence = 44 pence
• a 10ml refill bottle will be liable to £2.20 in duty — the calculation is 10 × 22 pence = £2.20

Duty suspension

Duty suspension is an arrangement with HMRC which means you do not have to pay Vaping Products Duty straight away if the vaping products are stored in certain approved places, for example an excise warehouse or a registered store.

Vaping Products Duty must be paid when the products are taken out of these places to be sold or supplied in the UK.

To use duty suspension you must have approval from HMRC.

In most cases, if you’re a UK manufacturer, you’ll be able to register a place with us where you will store your vaping products (known as a registered store) that will allow you to use duty suspension.

For all other taxpayers, you must either:

• become an approved excise or customs warehousekeeper
• get agreement from another business to store your goods in their approved place

Once the vaping products are put into packaging for retail sale, they can only be moved in duty suspension once, this can be either:

• from one approved place to another (but only once)
• from the place of import (for example an airport or maritime port) to a single place of duty suspension

If they’re moved again, you’ll have to pay Vaping Products Duty before the goods leave.

Bringing vaping products into the UK for personal use

You’ll be able to bring a small amount of vaping products into the UK for personal use (not to sell) without paying Vaping Products Duty, or applying for vaping duty stamps. This is sometimes known as a ‘duty-free allowance’.

HMRC will let you know the duty-free allowance for vaping products before 1 October 2026.

Exemptions

There will be no exemptions for Vaping Products Duty except in circumstances required by law, such as supplies to diplomatic missions.

Vaping duty stamps

From 1 April 2026 if you’re:

• a UK manufacturer, you must apply for approval for Vaping Products Duty and select the option to apply for the Vaping Duty Stamps Scheme
• a warehousekeeper you can apply for approval for the Vaping Duty Stamps Scheme using the relevant form
• an overseas manufacturer you must appoint a UK representative to apply for approval for the Vaping Duty Stamps Scheme

It can take up to 45 working days for HMRC to complete their checks. You should apply as early as possible to make sure you have the necessary approval before 1 October 2026. If you do not get approval and continue to produce vaping products, you may need to pay a penalty.

If we approve your application, you’ll be able to buy vaping duty stamps from a specialist supplier chosen by us. We’ll tell you who the supplier is before 1 April 2026.

From 1 October 2026 you must:

• pay Vaping Products Duty on all vaping products released for sale or supplied in the UK
• attach a vaping duty stamp when the products are placed into packaging for retail sale

Vaping duty stamps will be small, highly secure labels showing that your vaping product is legal. The exact size (dimensions) for the vaping duty stamp will be confirmed, but it will be between 15 to 18 millimetres in width and 42 to 44 millimetres in length.

When the vaping duty stamp is attached to the product, it must seal the packaging so that the product cannot be opened without damaging either the packaging or the vamping duty stamp. The vaping duty stamp cannot be re-used.

Vaping duty stamps must be attached to the outermost part of the final retail packaging, this could be either to the: 

• box
• bottle (if it’s sold or supplied without an outer box)

From 1 April 2027, all vaping products outside of duty suspension in the UK must have a vaping duty stamp attached.

You must apply for approval from HMRC to attach vaping duty stamps to the vaping products retail packaging in your premises if you’re a:

• UK manufacturer
• excise or customs warehousekeeper

If you’re an overseas manufacturer who wants to attach vaping duty stamps as part of your manufacturing process, you’ll have to appoint a UK representative to apply for approval for the Vaping Duty Stamps Scheme. The UK representative will buy vaping duty stamps on your behalf.

If we approve the application, the UK representative will be able to buy vaping duty stamps from a specialist supplier chosen by HMRC. We’ll tell you who the supplier is before 1 April 2026.

You can find out more in the ‘Manufacturing vaping products overseas to send and sell in the UK’ section.

Vaping duty stamps will also have a digital feature, such as a QR code, which must be scanned at set points in the supply chain for information to be uploaded.

The businesses who are responsible for the vaping products at these points must scan the stamp to let HMRC check where the vaping products have been, and who is responsible for them.

For a limited time period, a ‘transitional vaping duty stamp’ incorporating the physical security features (including the same dimensions), but not the digital feature (that can be scanned at set points) will be supplied.

We will work with the vaping industry and vaping products suppliers to support this transitional period. We’ll tell you more about this in 2026.

Manufacturing vaping products in the UK without approval from HMRC 

From 1 October 2026 it will be against the law to manufacture vaping products in places that have not been checked and approved by HMRC. This includes the mixing of non-duty paid liquids to produce a liquid to be used in a vape.

It will not include the mixing of multiple duty-paid liquids, for example a duty-paid ‘shortfill’ (nicotine-free liquid) and duty-paid ‘nicotine-shot’.

If you make vaping products or want to start making them, you must apply for approval for Vaping Products Duty.

You also need permission for any place you store your vaping products before paying Vaping Products Duty.

We’ll check these places are safe and secure enough to store excise goods and that you’ve met the conditions to get the approval.

If you want to release vaping products into the UK market, you must attach a vaping duty stamp.

You must be approved by HMRC (through the Vaping Duty Stamp Scheme) to attach a vaping duty stamp. This will help us make sure all vaping products are legal. You can read more about the scheme in the ‘Vaping duty stamps’ section.

You do not need to apply separately for vaping duty stamps if you’re a UK manufacturer. You’ll be able to select the Vaping Duty Stamps Scheme as part of your Vaping Products Duty approval process.

You can apply for Vaping Products Duty and the Vaping Duty Stamps Scheme from 1 April 2026.

Your approval can cover more than one premises, for example a factory and a duty-suspended store for your vaping products. These may be in the same physical building, but they must be clearly and physically separated. 

Only one manufacturer will be permitted to operate in a building. 

Applying for approval

HMRC will tell you how to apply for approval for Vaping Products Duty and the Vaping Duty Stamps Scheme before 1 April 2026.

When you apply for approval for Vaping Products Duty and the Vaping Duty Stamp Scheme, you’ll need to provide information to us including the:

• business name and address
• VAT or Corporation Tax number (if you have one)
• name of a responsible person
• premises plan
• business plan
• financial guarantee from a financial institution (if we ask you to)

Premises plan 

You must send HMRC a plan of your premises. This must show that the site is secure and how you’ll control the vaping products, people and vehicles entering or leaving the site. 

You must show us the exact locations where you intend to make or store vaping products.

Business plan 

You must give HMRC a business plan for your business. It should include:

• how your business is set up, who controls the business and your corporate structure
• what vaping products, and how much you plan to produce
• if you plan to export or import vaping products
• the relevant tax information, such as existing HMRC reference numbers
• your accounts for the previous financial tax year — 6 April to 5 April
• how you plan to comply the record keeping requirements, and how we can audit your records

We’ll use this information to:

• check that your business is credible and will pay the right amount of tax
• check your Vaping Duty Stamp Scheme application
• work out how many vaping duty stamps you’ll be allowed to purchase

In some circumstances, we may want a financial guarantee as a condition of your approval. For example, if your business is brand new or if you’ve had any tax issues in the past. This is to make sure you can still pay the right amount of tax if things go wrong. 

If you no longer wish to be approved, you must withdraw your application as soon as possible.

If you’re approved

HMRC will send you a letter confirming the details of your approval, including any extra rules you must follow.

We may check for compliance at any time. If we find that you have not followed the rules, we may revoke (cancel) your approval. We will tell you the reasons why your approval has been cancelled.

If your approval is revoked (cancelled), you must stop manufacturing vaping products.

You can:

• ask us to review our decision
• appeal to an independent tribunal

We may give you temporary approval during the review or appeal process if we cancel your application.

You must tell us if you:

• stop producing vaping products
• want to cancel your approval 

Before we cancel your approval, we’ll check that you do not need to be registered for the Vaping Duty Stamps Scheme. 

When your approval is cancelled, you cannot produce any further vaping products.

If you’re not approved

HMRC may refuse your application for approval. If we refuse your application, we’ll tell you why.

You can:

• ask us to review our decision
• appeal to an independent tribunal

We may give you temporary approval during the review or appeal process if we reject (refuse) or revoke (cancel) your approval.

Submitting returns

You must submit an online Vaping Products Duty Return by the 7th day of each month.

It must cover all your activity for the previous calendar month (known as the accounting period).

HMRC tell you what you’ll need to include in your return. 

If you cannot use the online return, you can get extra support from HMRC.

When to pay the Vaping Products Duty 

You must pay the Vaping Products Duty shown on your online return by the 15th day of the month following the accounting period.

If the 15th day falls on a weekend or bank holiday, you must pay on the next working day.

HMRC will let you know how to pay and what happens if you:

• pay too much
• pay too little because of an error

Reclaiming money if the products are spoilt

If you’re a UK manufacturer and you pay Vaping Products Duty on vaping products that are returned because they’re no longer in a saleable condition, you may be able to reclaim the Vaping Products Duty you have paid, or adjust it in your next return.

You must give HMRC evidence that the products have been destroyed.

Reclaiming money if you export duty-paid products

If you’ve paid Vaping Products Duty on vaping products and you export them, you may be able to reclaim through the excise duty drawback scheme.

You’ll have to provide evidence of the export and the destruction of the vaping duty stamps attached to the products.

Find further information about the UK’s excise duty drawback scheme.

Records you must keep

You must keep detailed financial business activities, and any other records related to the handling of your excise goods (vaping products).

HMRC will tell you exactly which records you must keep and for how long.

Manufacturing vaping products overseas to send and sell in the UK

From 1 October 2026, it will be against the law to import an overseas manufacturers’ vaping products into the UK that do not have vaping duty stamps attached, unless they’re going into premises approved by HMRC for duty suspension.

If you plan to supply vaping products to the UK, you’ll need to appoint a UK representative who has approval from us to join the Vaping Duty Stamp Scheme.

If your business has an established UK branch, they can apply to be your representative, or you can appoint a UK representative. 

The UK representative must have approval before they can order vaping duty stamps on your behalf. You’ll pay for the cost of the vaping duty stamps when they’re ordered.

They’ll be sent to you to attach them on to your vaping product packaging.

Vaping Products Duty will be due when the products are released into the UK.

The UK representative can apply for approval to join the Vaping Duty Stamp Scheme from 1 April 2026, it may take up to 45 working days for us to carry out our checks. 

Your UK representative:

• will be legally and financially responsible for the stamps
• could receive large fines if they go missing
• may have to provide a financial guarantee when they apply for the scheme

If you decide not to appoint a UK representative, the importer of the goods will have to make sure they’ve got another way to put the vaping duty stamps on your products in the UK, before they leave customs control or duty suspension.

If you’re a customs or excise warehousekeeper already approved by HMRC 

From 1 October 2026, outside of manufacturing facilities and stores, only customs or excise warehouses approved by HMRC and run by authorised warehousekeepers will be allowed to store vaping products in duty suspension.

If you’re already an authorised warehousekeeper, you’ll need to ask us for an amendment to your approval to store vaping products by submitting the relevant form to apply for authorisation (the form will be available from 1 April 2026). 

It can take up to 45 working days for us to do all of our checks. 

You should apply as early as possible to make sure you have the necessary approval before 1 October 2026.

If you plan to attach vaping duty stamps to the vaping products that you’re storing, you’ll need to ask us for an amendment to your approval using the relevant form (the form will be available from 1 April 2026).

Once you’re approved, you’ll be able to order vaping duty stamps through the Vaping Duty Stamps Scheme.

All products you release from duty suspension must have a vaping duty stamp. 

When you order the vaping duty stamps, you’ll only pay for the cost of the vaping duty stamps, not the Vaping Products Duty.

Vaping Products Duty will be paid after an online return has been submitted. Find out more in the following sections:

• ‘Submitting returns’
• ‘When to pay the Vaping Products Duty’

Applying for approval to be a customs or excise warehousekeeper

If you’re not a UK manufacturer of vaping products and you want to store vaping products in duty suspension, you’ll need to apply to HMRC to get permission to become an authorised warehousekeeper.

Your warehouse premises will also need to be approved.

Find out how to apply to apply to operate a customs warehouse and the different types of warehouses.

Making payments

You must pay Vaping Products Duty by completing the relevant form either:

• immediately when you remove the products from a customs or excise warehouse
• on the 29th day of the month if you have a duty deferment account

Vaping products not held in a customs or excise warehouse 

From 1 October 2026, only premises approved by HMRC will be allowed to store vaping products manufactured or imported after this date if the duty has not been paid at the border on a customs declaration.

If you want to store your vaping products in a warehouse after this date without duty paid, you must check that the warehouse has permission from us to store vaping products.

Importing vaping products

If you’re importing vaping products into the UK, you must pay Vaping Products Duty when they arrive.

You’ll pay Vaping Products Duty through your Customs Declaration.

All vaping products that you import into the UK must have a vaping duty stamp attached before they arrive, unless they’re entering duty suspension.

You may pay the Vaping Products Duty later if your products are delivered to a warehouse or manufacturer’s premises approved by HMRC for this purpose. In most cases, this will be an excise or customs warehouse.

If you already have a EORI (Economic Operators Registration and Identification) number, you do not need a new one to carry on importing vaping products.

Selling vaping products by wholesale or retail in the UK

You do not need permission from HMRC to sell vaping products in the UK.

Unless you’re manufacturing or storing vaping products in duty suspension, you do not need to apply for approval from HMRC.

The duty should have been paid by the business who released the vaping products from duty suspension or imported them.

From 1 April 2027 it will be an offence to sell vaping products without a vaping duty stamp unless they’re in duty suspension. This will carry a large fine and possible prison sentences in the most serious cases. HMRC will also be able to seize any legitimate stock found with the unstamped goods

Any goods found without a vaping duty stamp may be seized. In line with our approach for Tobacco Products Duty, we will also have powers to remove legitimate products from premises found to be in possession of unstamped products outside of duty suspension.

Compliance and penalties 

HMRC uses penalties to stop people breaking the rules and to be fair to those who do the right thing. We do not use penalties as a method of raising revenue.

We will use similar compliance and enforcement powers for Vaping Products Duty to those that are already in place for other taxes and duties. For example, businesses must give us information and documents that can help to calculate the correct level of duty.

We will also be able to challenge the information you give in your returns and check for additional liability where necessary.

The government will make sure that necessary civil and criminal investigation powers are available to address non-compliance. Any decision to prosecute will be taken by the UK prosecuting authorities through existing procedures.

Other offences will include the possession, sale, importation or transportation of vaping products without a vaping duty stamp. Tampering, forging or attaching counterfeit stamps, as well as failing to comply with the vaping duty stamps rules will also be against the law.

Any goods found without a vaping duty stamp will be liable to be seized and in line with HMRC’s approach for Tobacco Products Duty, we will also have powers to remove legitimate vaping products from premises found to be in possession of unstamped products outside of duty suspension.

Where there is repeated or large-scale non-compliance, we will be able to prevent businesses from purchasing vaping duty stamps.

These offences and penalties will apply to all products liable for Vaping Products Duty from 1 October 2026.

The penalties and offences will also apply to non-duty liable stock without a vaping duty stamp following the end of the grace period on 1 April 2027.

Next steps and contact information

HMRC is working with key stakeholders within the vaping industry to understand how Vaping Products Duty will affect them.

We will give updates about Vaping Products Duty and provide detailed guidance.

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You can email: vapingproductsduty@hmrc.gov.uk to let us know:

• if you would like this information in an alternative format
• the questions you would like answered about Vaping Products Duty and the Vaping Duty Stamps Scheme
• if you would like to be added to the vaping duty mailing list to be sent future updates