As of 1 September 2026, HM Revenue & Customs (HMRC) has issued a critical press release confirming that the new Vaping Products Duty and the accompanying Vaping Duty Stamps Scheme will commence on 1 October 2026. This marks a significant expansion of the UK’s excise duty regime, targeting the rapidly growing vaping market to align taxation with traditional tobacco products. The legislation, introduced under the Finance Act 2026, imposes a flat-rate duty on vaping liquid based on nicotine content, with a mandatory duty stamp requirement for all products sold in the UK to combat illicit trade and ensure tax compliance.
Key Takeaways
- New Excise Duty Regime Effective 1 October 2026: All manufacturers, importers, and distributors of vaping liquids must register for Vaping Products Duty with HMRC and account for duty on a per-millilitre basis, differentiated by nicotine strength (nicotine-free, low, medium, high). Duty stamps must be affixed to each retail unit before release for consumption.
- Compliance and Enforcement Framework: HMRC will enforce the scheme through the Vaping Duty Stamps Scheme, requiring unique identifiers on stamps for track-and-trace. Non-compliant products face seizure, and businesses risk significant penalties for duty evasion or stamp fraud. Transitional arrangements apply for existing stock held before 1 October 2026, subject to strict declaration deadlines.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement