Vaping duty UK 2026

Here we outline the Vaping Products Duty in the UK. If you sell vape products in the UK then VPD applies to you.

On October 1, 2026, the UK vaping landscape will undergo its most significant fiscal structural change to date. The government is introducing a flat-rate Vaping Products Duty of £2.20 per 10ml on all e-liquids—regardless of nicotine strength.

For a standard 10ml bottle, this effectively doubles the shelf price. For a 50ml shortfill, it adds £11 in pure tax. This article analyses the mechanics of the new vaping duty tax UK, the strategic pivot required for survival, and the critical supply chain lessons we must learn from Big Tobacco’s historical errors.

How vaping duty in the UK works

The upcoming levy is not merely a price adjustment; it is designed to mirror the excise duties found in alcohol and tobacco. Understanding the mechanics of the vaping duty tax UK is the first step toward survival.

Scope

Unlike previous regulations that distinguished between nicotine-containing and nicotine-free products (like the TRPR), this duty applies to everything liquid.

• Pre-filled Pods: Taxed at £2.20 per 10ml (pro-rated).
• 10ml E-liquids: Taxed at £2.20.
• Short-fills (Nicotine-Free): Also taxed at £2.20 per 10ml.

Vaping Duty + VAT

The financial impact is compounded by VAT. The excise duty is applied before VAT, meaning consumers pay tax on the tax.

• Current 10ml RRP: ~£3.99
• New Duty Cost: £2.20
• VAT on Duty: £0.44
• New Baseline Price: ~£6.63+ (assuming margins remain constant)

For the vaping duty tax UK regime, high-volume products like shortfills face the steepest cliff edge. A 100ml bottle, currently a budget-friendly option, will incur £22 in duty alone, fundamentally altering its value proposition.

Vaping Duty UK Timelines

Vape Business Registration

Registration for the duty opens in April 2026. Brands that view this as administrative paperwork will fail. The vaping duty tax UK requires a forensic level of transparency in your supply chain. You must account for every millilitre produced, stored, or shipped. The “Duty Stamp” will become the hallmark of legitimacy; products without it will be immediately identifiable as illicit.

Update Portfolio

Manufacturers must audit their SKUs now. Products that rely entirely on a “volume-for-value” model may no longer be viable. When the tax component constitutes 50-70% of the shelf price, the consumer’s focus may shift from “cheap” to “quality.” Brands must differentiate through formulation, safety assurance, and brand loyalty rather than rock-bottom pricing.

Avoid mistakes made by big tobacco

As the industry prepares for the vaping duty tax UK, we stand at a regulatory precipice similar to the one Big Tobacco faced in the 2000s and 2010s. The most critical lesson from that era isn’t just about marketing—it’s about supply chain integrity.

The duty “Oversupply” Precedent

In the years surrounding 2010, the tobacco industry came under intense scrutiny. A major tobacco multinational faced legal action for “oversupplying” a low-tax European jurisdiction (specifically Belgium) with hand-rolling tobacco.

The accusation was straightforward: the company was shipping vastly more product to a neighboring country than the local population could legitimately consume. The regulator’s view was that this excess stock was destined to “leak” back into the UK market to evade high domestic duties.

The Penalty & The Lesson

The consequences were material. HMRC took the multinational to court, initially levying a fine of £650,000 for failing to control its supply chain and facilitating smuggling. While this penalty was eventually reduced to £100,000 on appeal, the legal principle was cemented: manufacturers are responsible for where their product ends up.

As the vaping duty tax UK comes into force, the temptation for vape manufacturers will be to oversupply non-duty or low-duty jurisdictions, or to turn a blind eye when “export” stock remains in the UK.

This is a liability, not a strategy.

Don’t Feed the Grey Market

If your sales to a low-tax region spike without a corresponding rise in local consumption, regulators will notice.

Vaping duty UK Track and Trace

Start setting up a robust tracking system now. If illicit bottles are found in the UK, you must be able to prove they didn’t come from your legitimate supply chain.

The Bottom Line

The “oversupply” game has been played before, and regulators now have the playbook to stop it.

Conclusion: Prepare early

The vaping duty tax UK is a significant hurdle, but if vape businesses prepare early and establish robust compliance teams and clear supply chains, then this hurdle can be jumped!

Read on for our useful FAQ – or contact us below for more information on your new responsibilities.

Want to bring TPD compliance in-house?

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Vaping Duty UK: Need support?

Get in touch with you vaping duty UK questions via our contact form below.

FAQ

When to pay UK Vaping Product Duty on e-liquids?

Payments start in October 2026 for all products on the UK market. You must pay the Vaping Products Duty by the 15th day of the month following the accounting period.

What are Vaping Duty Stamps (VDS)?

Vaping Duty Stamps are the ‘UK Duty Paid’ stamps like what you see on cigarette packs. It is the new stamping system introduced under the UK’s Vaping Products Duty (VPD) to enhance traceability, combat counterfeiting, and support enforcement efforts for vaping products. It will apply to duty-paid vaping liquids starting in October 2026, with requirements for manufacturers, importers, and retailers to handle stamped vs. unstamped goods.

How do I register for VPD?

Apply for VPD and VDS (Vaping Duty Stamps) together via HMRC from 1 April 2026. Submit business and tax details, premises plan, business plan, and financial guarantee if required (takes up to 45 working days to receive approval).

When should I register?

Applications open on 1 April 2026. Register early to secure approval before the VPD go-live date of 1 October 2026 and avoid delays.

Does VPD apply to nicotine-free e-liquids?

Yes, VPD applies to all vaping liquids, regardless of nicotine content.

Does UK vaping duty apply to nicotine pouches?

No, UK vaping duty applies only to vaping liquids and does not cover nicotine pouches, hardware without liquid, or accessories.