by Steffen Kemmerzehl, MAAT, AATQB – see The Accounting Hub
If your business manufactures, imports, stores, or distributes vaping products, an important change is coming.
HM Revenue & Customs has opened applications for the new Vaping Products Duty (VPD), which comes into force later this year. This introduces a new duty on vaping liquids and new product stamp requirements across the UK supply chain.
For many businesses, this will mean changes to pricing, record keeping, and compliance processes. The good news is that with early preparation, there is time to get everything in place.
What is changing?
From 1 October 2026, a new excise duty of £2.20 per 10ml will apply to all vaping liquids, including products that do not contain nicotine.
Products supplied after this date will also need to carry an official duty stamp before they can be sold.
This is a significant operational change, especially for businesses handling manufacturing, imports, warehousing, or distribution.
Who is affected?
This applies to businesses that:
• manufacture vaping products
• import vaping products into the UK
• store products in excise warehouses
• distribute vaping products within the supply chain
Retailers may also be affected through stock transition rules and product availability.
Key dates to be aware of
1 April 2026
Applications open for Vaping Products Duty registration and the duty stamps scheme
31 August 2026
Deadline to obtain and use transitional stamps
1 October 2026
Duty becomes payable and newly supplied products must carry a duty stamp
31 March 2027
Final deadline to sell existing unstamped stock
1 April 2027
All vaping products must carry a duty stamp, with no exceptions
What businesses should do now
The best step is to prepare early.
You may need to:
• register with HMRC
• review how duty costs will affect pricing and margins
• put clear record keeping systems in place
• plan ahead for ordering and applying duty stamps
• check that your accounting systems can support compliance reporting
HMRC approvals can take time, so leaving it too late could create unnecessary pressure.
A simple example
If your business imports vaping liquids from overseas, you may need to register, account for duty, manage new stamp requirements, and review your pricing structure before October.
Without planning ahead, costs and administration can quickly build up.
With the right systems in place, the transition becomes much easier to manage.
How Friendly Assist Accountancy can help
At Friendly Assist Accountancy, we help businesses make sense of tax changes and put practical systems in place.
We can support you with:
• HMRC registrations and approvals
• excise duty compliance
• cash flow forecasting
• Xero setup and reporting
• ongoing tax and VAT support
If your business may be affected by Vaping Products Duty, send us a message and we will happily talk it through with you.
Early advice can make the whole process clearer and less stressful.
Reference: HM Revenue & Customs guidance on Vaping Products Duty
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