Introduction
As of 1 April 2026, the UK government opened applications for Vaping Products Duty (VPD) and the Vaping Duty Stamps (VDS) Scheme. These new regulations will become mandatory from 1 October 2026, meaning all vaping products sold in the UK must carry a duty stamp. Businesses involved in manufacturing, importing, storing, or distributing vaping goods must act now to stay compliant. (gov.uk)
Key Requirements & Deadlines
- Starting 1 April 2026: Manufacturers, importers, and warehousekeepers can apply for approval under the VPD and VDS schemes. (gov.uk)
- Transitional stamps available until 31 August 2026: These include physical security features but not the digital tracking component. They cannot be affixed after 30 September 2026. (gov.uk)
- From 1 September 2026: Only digital-featured duty stamps with full security can be used. (gov.uk)
- From 1 October 2026: All vaping products must carry duty stamps; duty becomes payable; unstamped or improperly stamped stock risks penalties. Retailers may sell stock acquired before this date without stamps up to 31 March 2027 under grace period arrangements. (gov.uk)
What Businesses Need to Prepare
- Apply for HMRC approval as soon as possible. Waiting could delay stamp procurement or compliance. Approval requires details like premises plan, business plan, security arrangements. (gov.uk)
- Plan inventory and supply chain: Determine what stock qualifies under transitional rules. Decide whether to use transitional stamps or wait for digital ones. (gov.uk)
- Update packaging and logistics processes: Digital stamps include scanning requirements at points along the supply chain. Ensure traceability. (gov.uk)
- Estimate financial impact: Duty rate is £2.20 per 10ml for all liquids, whether nicotine-containing or not. (gov.uk)
- Train staff and adjust systems: Account for new reporting, paper trails, security, digital scanning, penalties. IT systems may need updating.
Potential Risks & Pitfalls
| Risk | Consequence | Mitigation |
|---|---|---|
| Missing a deadline (e.g., April 1 registration, October stamping) | Illegal sales, fines, product seizures | Start application process ASAP; monitor HMRC guidance portals |
| Holding unstamped inventory beyond March 2027 without transition eligibility | Stock obsolescence or forced disposal | Maintain accurate inventory records; use transitional stamps if needed |
| Non-compliant or fraudulent duty stamps | Criminal or civil enforcement; loss of license or product forfeiture | Work only with HMRC-approved suppliers; secure premises; maintain audit trail |
Example Scenario
Acme Vapes Ltd., based in UK, imports containers of vaping liquid powder containing 1000 individual products in July 2026. They apply for approval in April.
- They can use transitional stamps for goods imported before 1 October 2026.
- They affix transitional stamps until 30 September. From 1 October, they must use only digital stamps.
- Any unsold unstamped stock they hold from before 1 October can be sold up to 31 March 2027. After that, any new or unsold stock must carry appropriate stamps. Acme must also ensure all its packaging and transport partners are approved under VDS scheme.
Key Takeaways
- The VPD and VDS regime represents a major shift in the UK’s taxation and excise rules for vaping — moving from zero excise duty to a flat-rate duty with strict supply chain and stamping requirements.
- Non-compliance can result in significant penalties, including civil and criminal sanctions.
- Firms should assess immediate operational impact, including licensing, packaging, inventory, staffing, and finance.
Stay ahead by applying early, updating internal systems, and clearly communicating with all stakeholders across your supply chain to ensure smooth compliance from October onwards.