The UK government has confirmed a new Vaping Products Duty (VPD) starting October 1, 2026, which will impose a flat tax rate of £2.20 per 10ml on all vaping liquids. Mandatory registration for businesses begins on April 1, 2026, and by April 1, 2027, all vaping products sold in the UK must carry a physical duty stamp to prove compliance.
Key Takeaways:
- New Tax: A flat rate of £2.20 per 10ml applies to all e-liquids (nicotine or nicotine-free).
- Registration Opens: Businesses must register with HMRC starting April 1, 2026.
- Mandatory Stamps: Duty stamps are required on all products from April 1, 2027.
- Compliance: Non-compliance can lead to civil or criminal sanctions.
HM Revenue and Customs (HMRC) has confirmed that mandatory Vaping Products Duty (VPD) registration will open in April 2026, ahead of a significant tax overhaul. This development occurs amidst efforts to regulate the vaping market, directly resulting in a new flat tax rate and strict duty stamp requirements for all UK manufacturers and importers.
The Timeline for New Vaping Taxes
HMRC is urging businesses to prepare now for a phased introduction of the new tax regime. The regulations will roll out over a 12-month period to allow the industry to adapt.
| Date | Regulatory Change |
|---|---|
| April 1, 2026 | Registration opens for Vaping Products Duty (VPD) and the Duty Stamps Scheme. |
| October 1, 2026 | VPD takes effect: £2.20 tax per 10ml on all e-liquids. Duty stamps must be applied to new stock. |
| April 1, 2027 | Mandatory Deadline: All vaping products on the market must carry a duty stamp. Grace period for old stock ends. |
What the Duty Entails
From October 2026, a flat rate of £2.20 per 10ml will apply to all vaping liquids sold or supplied in the UK. Crucially, this tax applies regardless of whether the liquid contains nicotine. This means nicotine-free shortfills and pre-mixed nicotine e-liquids will face the same levy.
Alongside the tax, physical duty stamps must be affixed to retail packaging. These stamps will feature security measures and digital elements for traceability. Rachel Nixon, HMRC’s Director of Indirect Tax, emphasized the need for early action: “This gives them six months to obtain our approval before the new duty and duty stamps go live. Early preparation is essential to ensure a smooth transition.”
Who Must Register?
The new rules affect the entire supply chain. UK manufacturers must apply for approval for both the VPD and the Duty Stamps Scheme. Importers will be liable for the duty and must register if acting as a UK representative for overseas manufacturers. Overseas manufacturers themselves must appoint a UK representative to handle the scheme on their behalf.
Failure to comply with these new mandatory requirements could result in severe civil or criminal sanctions once the grace period expires in April 2027.
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