Introduction
The UK vaping industry is set for a major shift as the Vaping Products Duty (VPD) and Vaping Duty Stamps (VDS) scheme comes into force on 1 October 2026.
Key Dates & Application Process
- Applications open: 1 April 2026
- Approval time: Up to 45 working days
- Apply for VPD & VDS together
- Overseas manufacturers must appoint a UK representative
- Submit: business & tax info, premises plan, business plan, financial guarantee (if needed)
Understanding Vaping Duty Stamps (VDS)
- Required from 1 October 2026 on retail packaging
- Stamp cost ≠ duty cost
- Must seal packaging (tamper-evident)
- Security: QR code, hologram, covert markers
Understanding Vaping Products Duty (VPD)
- Applies to all vaping liquid — nicotine or not
- Rate: £2.20 per 10ml (22p/ml)
- Hardware excluded
- Duty due when released from suspension or imported
- Monthly return due: 7th; Payment: 15th
Grace Period & Existing Stock
- Grace period: 1 Oct 2026 – 1 Apr 2027
- Stock made/imported before 1 Oct 2026 doesn’t need stamps during this period
- All products must be stamped after 1 April 2027
Compliance & Enforcement
- Maintain records: batch codes, dates, invoices, logs
- HMRC inspections can occur anytime
- Sanctions: fines, seizure, prosecution
- Non-compliance may revoke approval or block stamp ordering
Frequently Asked Questions
The following FAQs are fully expandable. You can also recreate them using Elementor’s Accordion widget.
Q1. What is the UK Vaping Products Duty (VPD) and when will it begin?
- Applies to vaping liquids (including DIY mixtures)
- Includes nicotine and non-nicotine variants
- Goes live on 1 October 2026
Q2. When can businesses apply for VDS approval?
- From 1 April 2026
- Approval takes up to 45 working days
- Overseas manufacturers must appoint a UK representative
Q3. Does ordering stamps trigger duty payment?
- No — duty and stamp costs are separate
- Duty is reported monthly
- Returns due 7th; Payment due 15th
Q4. What are the requirements for stock manufactured before 1 October 2026?
- Grace period: 1 Oct 2026 – 1 Apr 2027
- No stamp needed for stock made/imported before 1 Oct 2026 during this time
- From 1 Apr 2027, all products must carry a stamp or face penalties
Q5. What are the placement rules for duty stamps?
- Affix to outermost packaging (e.g. box or bottle)
- Stamp must seal packaging and be destroyed on opening
- Stamp must not be re-used
Q6. When does the grace period end?
- Ends on 1 April 2027
- After this date, unstamped products outside duty suspension will be non-compliant
- Unstamped stock may be seized
Q7. Will vaping duty stamps include security and traceability features?
- Yes — includes QR code, hologram, covert/forensic security elements
- Must be scanned at points in supply chain
- A transitional stamp without QR will be temporarily permitted
Q8. How do businesses apply to purchase and order duty stamps?
- Must be HMRC-approved from 1 April 2026
- Provide business, tax, and financial info
- Overseas firms must appoint a UK representative
Q9. What products are subject to vaping duty?
- All vaping liquids (nicotine or not)
- Includes liquids made from PG, VG, flavourings
- Does not apply to hardware or accessories
Q10. Are devices and batteries subject to duty?
- No — only the liquid is taxable
- Standalone hardware sold without liquid is excluded
Q11. Are nicotine-free or CBD e-liquids taxed?
- Yes — duty applies regardless of content
- Flat rate: £2.20 per 10ml (22p/ml)
Q12. What happens to stock made/imported before 1 October 2026?
- See Q4 — 6-month grace period applies
- From 1 April 2027, all products must be stamped
Q13. What happens after 1 April 2027?
- All vaping products must be stamped unless under duty suspension
- Selling unstamped products is an offence
- HMRC can seize products or issue fines
Q14. What records must be kept for compliance?
- Detailed records of manufacture/import, stock movement, invoices
- Batch codes and timestamps are essential
- HMRC may audit these records
Q15. What is a Registered Store?
- An HMRC-approved storage area within a manufacturer’s UK premises
- Allows duty suspension until products are released to market
Q16. How is ‘temporary’ defined in duty suspension?
- Not formally defined, but products can only move once while in suspension
- Further movement triggers duty payment
Q17. What is a customs/excise warehouse?
- HMRC-authorised location for storing duty-suspended products
- Must be operated by approved warehousekeepers
Q18. Difference between Registered Store and bonded warehouse?
- Registered Store: used by UK manufacturers on-site
- Bonded warehouse: broader use, open to importers and others
- Both require HMRC approval
Q19. What is the VPD rate?
- Flat rate of £2.20 per 10ml
- Equivalent to 22p per ml
Q20. How is duty calculated?
- Based on volume at 22p/ml
- Examples: 2ml pod = £0.44, 10ml bottle = £2.20
Q21. Do CBD or nicotine-free liquids attract duty?
- Yes — same flat rate regardless of content
- £2.20 per 10ml for all substances intended for vaping
Q22. Do I need to register before ordering stamps?
- Yes — registration and approval is required
- UK manufacturers can apply during VPD registration
- Overseas firms must appoint a UK rep
Q23. Will HMRC conduct compliance checks?
- Yes — at any time, even after approval
- They may audit returns or records
- Non-compliance can lead to approval being revoked
Q24. What does ‘released for consumption’ mean?
- It’s when goods leave duty suspension
- At this point, duty must be paid and stamp must be affixed
- For imports, this occurs before customs clearance
