The UK’s new excise duty:

Big changes are on the way for anyone making, importing, or storing vaping products in the UK – we cover the key changes and actions needed to help you stay ahead of the new Vaping Products Duty (VPD) and Vaping Duty Stamps (VDS) scheme.

From 1 October 2026, the UK government is introducing a brand new excise duty on vaping products which will be set at a flat rate of £2.20 per 10ml of vaping liquid, whether it contains nicotine or not.

Alongside this, all vaping products released for sale in the UK will also need duty stamps affixed to their retail packaging – which we expect will be very similar to tobacco product fiscal markings. These duty stamps show the product is legal, and from October 2026 they must be attached before any products enters the UK market, with a slight transition period for any product already in circulation until 1 April 2027.

When is VPD being introduced?

There are three key dates for businesses impacted by the new VPD and VDS, and being aware of these is essential to ensure you can keep moving vaping products into the UK:

• 1 April 2026 – applications open. If you manufacture, import, store in duty suspension, act as a UK representative, or plan to buy stamps then you must apply for approval. It’s key that businesses apply early as HMRC checks can take up to 45 working days.
• 1 October 2026 – the duty and stamp requirements go live. This means that you’ll need to start affixing stamps, making returns and paying duties. From this point, it will become illegal to manufacture, import or store in duty suspense without approval from HMRC.
• 1 April 2027 – the grace period ends. From this date, every vaping product outside of duty suspension and on shelves in UK stores must have a duty stamp attached.

How can I prepare for VPD?

Excise duties globally are primarily applied to alcohol, tobacco and fuel products. Over recent years, many countries globally have expanded their excise duty regimes to capture new, cigarette-alternative products such as vapes and snus – the UK the latest in this growing trend.

For many businesses involved in the import, manufacture or storage of vaping products in the UK, the new duty and stamps scheme will be their first exposure to excise duties which bring stringent regulation and controls – meaning key steps need to be taken to ensure compliance from 1 October 2026.

Firstly, start gathering the documents you’ll need (like premises and business plans) and ensure that all process and procedure documents are updated with the right controls in place – while we don’t yet have the vaping duty legislation, we can expect controls to be similar to those needed for tobacco products in the UK.

Secondly, review your supply chain to work out where duty becomes due, where stamps need applying and who will be responsible. If you’re an overseas manufacturer, you’ll need to appoint a UK representative and either apply stamps prior to the UK border or within in a UK duty suspended warehouse.

Any businesses already operating duty suspended warehouses will need to amend their current approval with HMRC to store vaping products and apply vaping duty stamps.

The period between April and October is also a great time to engage with suppliers, customers and distributors to communicate the upcoming changes, revise contracts and make all businesses in the supply chain aware of increased administration and costs.

Finally, and above all else, apply early. You must be approved by 1 October 2026 and with applications taking up to 45 days – act now!

How can Crowe help?

While the VPD and VDS is new, we’ve helped businesses across the UK excise industry obtain approvals like excise warehousing, design robust duty suspension processes, and stay compliant through major regulatory changes and dealt with similar vaping duties overseas.

If you need help navigating the new vaping duty, mapping your excise flows, or getting approval – we’re here to help guide you every step of the way.

For more information, please contact your usual Crowe contact.