Introduction of the new vaping duty regime
The government will introduce a new duty regime for vaping products. The Vaping Products Duty and Vaping Duty Stamps apply from 1 October 2026. These changes represent a significant shift for the sector. As a result, affected businesses must prepare early. HMRC opened applications for approval on 1 April 2026. This step allows time for compliance planning.
Preparing early under Vaping products duty schemes
Vaping products duty schemes require formal approval before trading continues. Manufacturers, importers and warehouse keepers must apply. Therefore, early action remains essential. HMRC warns that processing can take time. In some cases, applications may take at least 45 working days. Delays may occur where further information is required. Consequently, late applications create commercial risk.
How Vaping Products Duty will apply
The duty will apply to all vaping liquids. This includes nicotine and non‑nicotine products. A flat‑rate duty will apply uniformly. As a result, pricing structures may change. Businesses should review margins carefully. At the same time, duty applies at the production or import stage. Compliance systems must reflect this change accurately.
Use of duty stamps and compliance checks
Each retail vaping product must display a duty stamp. These stamps show that duty has been paid. They also support enforcement activity. Therefore, they help reduce illicit trade. Stamps must be affixed correctly before sale. HMRC will use stamps to monitor compliance. Errors could lead to penalties or product seizure.
Transitional arrangements and existing stock
Businesses will benefit from a transitional period. Retailers can sell unstamped stock until 31 March 2027. However, new products from October 2026 must meet requirements. This includes stamp application. Consequently, businesses should manage stock levels carefully. Early planning prevents wastage or disruption.
Regulatory guidance and official commentary
HMRC has published guidance on the new schemes. This guidance explains approval and compliance requirements. HMRC’s Director of Indirect Tax has encouraged early engagement. Proper preparation reduces mistakes and delays. It also ensures legal trading continues smoothly.
Ongoing responsibilities for affected businesses
Vaping products duty schemes introduce ongoing obligations. Businesses must maintain accurate records. They must also follow stamp control procedures. Regular compliance reviews remain essential. Ultimately, early preparation supports continuity and reduces risk.
