As of 1 October 2026, the United Kingdom has implemented the new Vaping Products Duty (VPD), a significant excise tax measure announced in the Spring Budget 2024. This duty applies to all vaping liquids and pre-filled pods containing nicotine, regardless of nicotine strength, and is charged at a flat rate per 10 millilitres of liquid. The legislation, enacted under the Finance Act 2024, aims to create a level playing field between vaping and traditional tobacco products while generating revenue for public health initiatives. HMRC has published comprehensive guidance on registration, accounting, and compliance obligations for manufacturers, importers, and intra-UK movers of vaping products. Businesses must register for VPD if they produce, import, or hold vaping products for commercial purposes, with returns and payments due quarterly.
Key Takeaways
- Scope and Rates: The duty covers all nicotine-containing vaping liquids at £2.20 per 10ml, with a reduced rate of £1.10 per 10ml for nicotine-free liquids. This applies to both domestic production and imports, with no de minimis threshold for registration.
- Compliance Requirements: Affected businesses must register with HMRC, maintain detailed records of production, importation, and stock movements, and submit quarterly returns via the new VPD online service. Penalties for non-compliance mirror existing excise regimes, including civil penalties and potential criminal prosecution for deliberate evasion.
- Transitional Provisions: A six-month transitional period allows businesses to sell through existing stock without duty payment, provided they notify HMRC of holdings by 31 March 2027. After this period, all vaping products in the UK market must bear duty-paid status or be held in duty suspension.
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