Vaping Products Duty (VPD) is a new UK excise duty on vaping liquid that started on 1 October 2026. It is charged at £2.20 per 10ml of e-liquid, whether or not the liquid contains nicotine. Manufacturers, importers and warehousekeepers pay it to HMRC, and vape shops carry it in their stock cost.
If you make, import, distribute or sell vapes in the UK, VPD changes your costs, your pricing and your paperwork. This guide explains the rate, who has to register with HMRC, the duty stamp deadlines, how the duty sits alongside VAT, and the practical steps every vape business should take now.
What is Vaping Products Duty?
Vaping Products Duty is an excise duty on vaping liquid that is manufactured in, or imported into, the UK. It applies to any liquid intended to be vaporised by a vape that is not a medicinal or tobacco product, and it applies whether or not the liquid contains nicotine. Zero-nicotine e-liquids and nicotine-free shortfills are caught in exactly the same way as high-strength nicotine liquids.
The duty is paid by the business that makes or brings the product into the UK, not directly by the customer. In practice the cost flows down the supply chain, so distributors and shops see it in their buying price and consumers see it in a higher shelf price. HMRC estimates around 200 manufacturers and up to 750 importers and warehousekeepers are directly affected (gov.uk).
When did Vaping Products Duty start?
Vaping Products Duty took effect on 1 October 2026. HMRC opened approval applications on 1 April 2026, and any business manufacturing or importing vaping products had to hold HMRC approval before the 1 October start date. The duty arrived alongside a set of tobacco duty changes on the same day, part of a wider effort to discourage youth vaping while raising revenue.
These are the dates that matter:
| Date | What happens |
|---|---|
| 1 April 2026 | HMRC approval applications open for manufacturers, importers and warehousekeepers |
| 1 October 2026 | VPD starts at £2.20 per 10ml; newly made or imported products must carry a duty stamp |
| 31 December 2026 | Last day transitional (non-digital) duty stamps can be used on products |
| 1 January 2027 | Digital duty stamps required on products stamped from this date |
| 31 March 2027 | End of the grace period for selling existing unstamped stock |
| 1 April 2027 | You must not sell any unstamped vaping products from this date |
How much is Vaping Products Duty and how do I work it out?
The duty is a flat £2.20 for every 10ml of vaping liquid, with no variation for nicotine strength. To work out the duty on a product, divide its liquid volume by 10 and multiply by £2.20. That makes the sums simple, but it also means low-strength and nicotine-free liquids cost the same duty as full-strength ones of the same size.
| Product | Liquid volume | Duty at £2.20 per 10ml |
|---|---|---|
| Single pod or bottle | 10ml | £2.20 |
| Standard bottle | 50ml | £11.00 |
| Large shortfill | 100ml | £22.00 |
| Import consignment | 5,000 x 10ml | £11,000 |
A worked example
An importer brings in 5,000 bottles of 10ml e-liquid. The duty is 5,000 x £2.20 = £11,000, payable to HMRC on top of any customs duty and import VAT. A nicotine-free 100ml shortfill still carries £22.00 of duty, because the charge is based purely on the volume of liquid, not on what is in it. If you import vapes alongside other goods, our guide to customs duty versus import VAT explains how the different charges stack up.
Who has to pay and register for the duty?
Three types of business must be approved by HMRC and account for the duty before they trade: manufacturers, importers and warehousekeepers. Approval was available from 1 April 2026, and HMRC urged affected businesses to apply early so they were ready for the 1 October start.
- Manufacturers producing vaping liquid in the UK.
- Importers bringing vaping products into the UK.
- Warehousekeepers storing products in duty suspension, for example in an authorised customs or excise warehouse, where duty is only due once the goods leave suspension.
Manufacturing or importing vaping products without the necessary HMRC approval is unlawful. HMRC was clear that businesses should apply as soon as possible rather than wait (gov.uk).
Do vape shops and wholesalers need to register?
If you only sell or distribute duty-paid vaping products wholesale or retail, you do not need to apply for HMRC approval. The duty has already been paid further up the chain. You do, however, take on checking and record-keeping duties.
Wholesalers and retailers must verify that products carry a valid duty stamp where one is required, that the stamp is fixed to the outermost retail packaging and seals it, and that the stock comes from a credible supplier with proper documentation. You should keep those records for at least six years (gov.uk). Selling products you cannot show are duty-paid and correctly stamped puts your stock, and your business, at risk.
What are Vaping Duty Stamps and what are the deadlines?
A Vaping Duty Stamp (VDS) is a tamper-evident, rectangular stamp, yellow or red, on the retail packaging that shows the duty has been accounted for. Products manufactured in or imported into the UK from 1 October 2026 need a stamp. There is then a short transition on the type of stamp and a longer one on old stock.
- Until 31 December 2026: transitional stamps without digital elements can still be applied to products.
- From 1 January 2027: newly stamped products need the digital version of the stamp.
- Until 31 March 2027: wholesalers and retailers can sell through eligible unstamped stock they already held, a six-month grace period.
- From 1 April 2027: it is an offence to sell unstamped vaping products, so any remaining old stock must be sold, returned, exported or destroyed before then.
How does the duty affect VAT and your pricing?
Vaping products stay standard-rated for VAT at 20 per cent. VPD is a separate excise duty: it raises the cost of the goods, and VAT is then charged on the full selling price, so the duty effectively feeds into the VAT you collect at the till (gov.uk). The two are accounted for in completely different ways, so keep them separate in your bookkeeping.
A pricing example
Say a 10ml bottle cost a shop £2.00 to buy before the duty existed. Once the importer passes on £2.20 of VPD, the shop's buying price rises to around £4.20. If the shop applies its usual markup and sells at £7.20 including VAT, the VAT element is £7.20 x 1/6 = £1.20, which the shop pays to HMRC, while it reclaims the input VAT on its own purchase. The duty does not appear as a line on the VAT return, but it has pushed the whole price, and therefore the VAT, higher. For a refresher on the return itself, see how to complete a UK VAT return.
This is the same pattern we saw with the recent cut to VAT on domestic electricity: an indirect tax change that quietly reshapes prices and margins rather than landing as a single bill.
What happens if you do not comply?
The penalties are serious. There are civil penalties for failing to register, failing to file returns and failing to pay the duty. Manufacturing or importing vaping products without HMRC approval is unlawful and can lead to seizure of goods and equipment and criminal prosecution carrying an unlimited fine, imprisonment, or both. Selling unstamped products after the grace period ends is also an offence. The message from HMRC is that the cheapest route is to be approved, stamped and properly recorded from the start.
What should UK vape businesses do now?
Whether you manufacture, import or simply sell, there are clear actions to take:
- Manufacturers and importers: confirm your HMRC approval is in place and set up your duty returns and payment process.
- Wholesalers and retailers: check incoming stock for valid duty stamps, tighten supplier paperwork, and log everything so you can prove stock is duty-paid.
- Everyone: plan to clear unstamped stock before 1 April 2027, review your pricing to reflect the £2.20 per 10ml cost, and keep VAT and duty records separate.
- If you are not yet VAT registered but higher prices push your turnover up, check our guide on how to register for VAT.
Vaping is a fast-moving, heavily regulated retail sector, and getting the duty, the stamps and the VAT right is now part of staying in business. If you run a vape shop or import e-liquids and want the numbers handled properly, our VAT services and support for small businesses can take it off your plate. Book a free call with Zmartly and we will map out exactly what applies to you.
Frequently asked questions
How much is Vaping Products Duty?
Vaping Products Duty is £2.20 for every 10ml of vaping liquid, charged at a single flat rate whether or not the liquid contains nicotine. A 10ml bottle carries £2.20 of duty, a 50ml shortfill £11.00, and a 100ml bottle £22.00.
Who pays Vaping Products Duty?
The duty is paid to HMRC by approved manufacturers, importers and warehousekeepers, not by the customer at the till. The cost then flows down the supply chain, so distributors and vape shops see it in their buying price and consumers see it in a higher shelf price.
Do I need a licence to sell vapes under the new rules?
If you only sell or distribute duty-paid vaping products wholesale or retail, you do not need HMRC approval. You do need to check that products carry a valid duty stamp where required, keep evidence of where your stock came from, and hold those records for at least six years.
Can I still sell my old vape stock after 1 October 2026?
Yes, during a grace period. Wholesalers and retailers can keep selling eligible unstamped stock they already held until 31 March 2027. From 1 April 2027 you must not sell any unstamped vaping products, so clear old stock through sales, returns, export or destruction before then.
