Key takeaways

  • Vaping Products Duty started on 1 October 2026 at a flat £2.20 per 10ml of vaping liquid, with or without nicotine.
  • A 2ml pod carries 44p of duty, according to HMRC's guidance.
  • Manufacturers, importers and warehousekeepers need HMRC approval; retailers and wholesalers that only sell duty-paid stock do not.
  • Retailers can sell existing eligible unstamped stock until 31 March 2027; from 1 April 2027 every vaping product sold must carry a valid duty stamp.
  • Transitional stamps can be bought until 30 November 2026 and affixed until 31 December 2026; from 1 January 2027 only digital stamps can be used.
  • Approved businesses must file a Vaping Products Duty return by the 7th of each month and pay by the 15th.
  • Travellers arriving in Great Britain can bring in up to 50ml of vaping liquid duty free.
  • The OBR expects the duty to raise more than £550 million a year by 2030-31.

Vaping Products Duty began on 1 October 2026 at a flat £2.20 per 10ml of vaping liquid. Manufacturers, importers and warehousekeepers pay it and need HMRC approval. Retailers do not pay it directly, but from 1 April 2027 they commit an offence if they sell any vaping product without a valid duty stamp.

What is Vaping Products Duty?

Vaping Products Duty is a new excise duty on vaping liquid, charged at £2.20 per 10ml (22p per ml). It applies to all vaping liquid, whether or not it contains nicotine, and includes liquid that people mix at home. The HMRC guidance, last updated 9 July 2026, gives the example of a 2ml pod, which pays 44p.

The duty sits alongside the Vaping Duty Stamps Scheme. Each retail pack must carry a stamp showing the duty has been paid. The policy paper of 26 November 2025 says the duty forms part of the Customs and Excise Management Act 1979 framework, with the main rules in the Finance Bill 2025-26.

Who has to register with HMRC?

Any business that makes, imports or stores vaping products before duty is paid needs HMRC approval. Since 1 October 2026 it has been unlawful to manufacture without it.

BusinessApproval needed?What it must do
UK manufacturer, including home mixersYesGet approval for the duty and stamps scheme
Overseas manufacturerVia a UK representativeAppoint an approved UK representative to buy stamps
ImporterPays at the borderPay duty on the customs declaration; stamp before arrival
WarehousekeeperYesAmend existing authorisation to hold vaping products
Retailer or wholesalerNoBuy only duty-paid, stamped stock

Applications must be made by a single legal entity; HMRC rejects joint applications. HMRC asked businesses to apply at least 45 working days before trading. Applicants supply a VAT or Corporation Tax number, a responsible person, a premises plan and a business plan, and may need a financial guarantee.

What are the key dates?

The stamp scheme phases in over six months. These are the dates in HMRC’s guidance and its press release of 1 October 2026.

  1. 1 October 2026: duty starts. Approval must be in place, and stamps must go on retail packs released from duty suspension or imported.
  2. 30 November 2026: last day to buy transitional stamps.
  3. 31 December 2026: last day to affix transitional stamps.
  4. 1 January 2027: only digital (data matrix) stamps can be affixed.
  5. 31 March 2027: last day retailers and wholesalers can sell eligible unstamped stock.
  6. 1 April 2027: every vaping product sold in the UK must carry a valid stamp. Selling unstamped products becomes an offence.

What retailers must do

Retailers and wholesalers that only sell duty-paid products do not need HMRC approval. Their job is to make sure their stock is legitimate and, from April 2027, stamped.

Use this checklist before 1 April 2027:

  • ask each supplier to confirm it is HMRC-approved or buys from an approved business
  • check that new deliveries carry yellow or red rectangular, tamper-evident stamps
  • run down old unstamped stock before 31 March 2027, as you cannot sell it after that date
  • keep invoices that show where each batch came from
  • review prices, as the duty adds £2.20 per 10ml before VAT
  • report suspected illicit products to HMRC

HMRC can seize unstamped stock and may also seize legitimate stock found with it. Penalties apply for selling or holding unstamped products, and serious cases can lead to prosecution.

What approved businesses must file

Approved businesses file a monthly Vaping Products Duty return online. The return is due by the 7th of the month after the period ends, and payment by the 15th. If the 15th falls on a weekend or bank holiday, pay on the next working day. Penalties also apply for lost stamps and stamps not used within 12 months of issue.

What does the duty mean for prices?

The duty is £2.20 for every 10ml, and VAT is charged on top of the duty-inclusive price. For a VAT-registered seller, that adds £2.64 including VAT to a 10ml bottle and about 53p to a 2ml pod. Our VAT calculator and profit margin calculator help you reprice. For VAT basics see the VAT hub.

Tobacco duty also rose on 1 October 2026. On top of the usual escalator of RPI plus 2 percentage points, there was a one-off increase of £2.20 per 100 cigarettes or 50g of other tobacco. The government said this keeps switching to vaping financially attractive.

What can travellers bring in?

Travellers arriving in Great Britain can bring up to 50ml of vaping liquid duty and tax free. Above that, they must declare it and pay duty on the full quantity. Northern Ireland has different rules: products from outside the EU count towards the £390 “other goods” allowance (£270 by private plane or boat).

What advisers should do

Accountants with retail or vape shop clients should act this quarter.

  1. Identify affected clients. Convenience stores, vape shops, online sellers and wholesalers all need to check their supply chains.
  2. Confirm approval status. Any client that mixes, imports or stores liquid needs HMRC approval already.
  3. Plan the stock run-down. Unstamped stock left on 1 April 2027 cannot be sold.
  4. Diarise the monthly return. Add the 7th and 15th to approved clients’ calendars. Our key dates for November 2026 covers other deadlines.

HMRC’s vaping team is on vapingproductsduty@hmrc.gov.uk. For other contacts see HMRC telephone numbers.

Frequently asked questions

How much is Vaping Products Duty?

It is a flat £2.20 per 10ml of vaping liquid, or 22p per ml, whether or not the liquid contains nicotine.

Do shops need to register for Vaping Products Duty?

No. Retailers and wholesalers that only sell duty-paid products do not need HMRC approval, but they must only sell stamped products from 1 April 2027.

Can I still sell vapes without a duty stamp?

Until 31 March 2027 you can sell existing eligible unstamped stock. From 1 April 2027 selling an unstamped vaping product is an offence.

When is the Vaping Products Duty return due?

Approved businesses file a monthly return by the 7th of the following month and pay the duty by the 15th.

Does Vaping Products Duty apply to nicotine-free vapes?

Yes. The duty applies to all vaping liquid, including nicotine-free and homemade liquid.

Sources

Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.