One month to go: what HMRC's new Vaping Products Duty means for business

From 1 October 2026 every vaping liquid sold in the UK carries a new excise duty, and businesses that have not sought HMRC approval have been warned they may be unable to trade.

A new duty arrives

The vaping industry has known this was coming, but the clock is now firmly ticking. On 1 September 2026 HM Revenue and Customs reminded businesses across the vaping supply chain, from manufacturers through to retailers and wholesalers, that Vaping Products Duty and the Vaping Duty Stamps Scheme both start on 1 October 2026.

The duty itself is straightforward in principle. It applies at a flat rate of £2.20 per 10ml to all vaping liquids manufactured in, or imported into, the UK, whether or not they contain nicotine. The rate was announced at the Autumn Budget 2024, and the duty comes into force alongside increases in tobacco duty. Ministers have framed the measure as part of a broader public health push to create a smoke-free generation, discourage youth vaping and help adult smokers move away from tobacco.

Vaping Products Duty will sit within the existing excise regime set out in the Customs and Excise Management Act 1979. Treasury analysis suggests it is expected to raise more than £550 million a year by 2030-31, so this is far from a token levy.

The warning to unapproved businesses

The sharpest part of HMRC's message is aimed at businesses that have not yet obtained approval. Rachel Nixon, HMRC's Director of Indirect Tax, said: “With one month to go until Vaping Products Duty comes into force, manufacturers, importers and warehousekeepers should have applied to HMRC for approval and be preparing to pay any of the new excise duty due, to comply with the new requirements from 1 October 2026.”

She went on to spell out the consequences of missing the deadline. “Businesses that do not have approval by that date cannot produce vaping products in the UK and may be unable to trade,” she said. “They could also face operational delays and may be subject to civil or criminal sanctions.” In other words, approval is not a formality to be sorted out later; without it, a manufacturer's operations effectively stop.

Businesses that manufacture vaping products, act as UK representatives for overseas manufacturers, or store duty-suspended stock should already have the approvals they need. Those liable for the duty will have to account for and pay it once the ‘duty point’ is triggered, though where products enter a duty-suspension arrangement the payment is deferred until they leave it.

Stamps, stock and a phased transition

Alongside the duty comes the Vaping Duty Stamps Scheme, which requires duty-liable products released for sale to carry a valid stamp. HMRC has built in a transition to soften the switch. Following industry feedback, approved manufacturers, UK representatives and warehousekeepers can buy transitional duty stamps until 30 November 2026 and affix them until 31 December 2026. Digital stamps have been available since 1 September 2026, and from 1 January 2027 only digital stamps can be applied. These digital stamps are designed to support authentication and traceability along the supply chain through a scanning app supplied by the stamp provider.

Retailers and wholesalers face a gentler timetable but should not ignore it. Those that only sell duty-paid products do not need their own approval, and they can continue to sell existing eligible unstamped stock during a six-month window running from 1 October 2026 to 31 March 2027. However, any vaping products manufactured in, or imported into, the UK on or after 1 October 2026 must carry a stamp, and from 1 April 2027 all vaping products sold or supplied in the UK must show a valid duty stamp. Businesses that fall short of the rules may face civil or criminal sanctions. Importers, meanwhile, will generally need to pay the duty when goods arrive in the UK, unless those goods enter a duty-suspense arrangement such as an approved customs warehouse.

Implications

For legitimate operators, the immediate priority is administrative: confirm the right approvals are in place, work out where the duty point falls in their supply chain, and make sure stamped stock is ready to move on 1 October. Retailers should be talking to suppliers now about compliant stock, and using the transition period rather than assuming it removes the deadline.

There is a bigger enforcement story underneath the paperwork. A duty stamp is not just a tax marker; it is a visible signal of whether a product is legitimate, which dovetails with HMRC's wider crackdown on illicit tobacco and vapes on the high street. Once stamps become the norm, unstamped products will stand out, giving enforcement teams a clearer line between compliant traders and the black market. Businesses that get their approvals and stamping right will find themselves on the correct side of that line from day one.