HM Revenue & Customs (HMRC) has urged businesses involved in the vaping sector to apply for the new Vaping Products Duty (VPD) by the end of July, warning that firms without the necessary approvals will be unable to continue key business activities from 1 October.
The tax authority said it is writing to manufacturers, importers and other businesses handling vaping products to remind them to register for both the Vaping Products Duty and the associated Vaping Duty Stamps (VDS) Scheme before the new regime comes into force.
Applications opened on 1 April, but HMRC warned approvals can take more than 45 working days to process. Businesses that have not yet applied are being advised to do so “as soon as possible” and no later than the end of July.
From 1 October, businesses that manufacture vaping products, store them under duty suspension or handle vaping duty stamps without the relevant approvals will be operating illegally and could face civil or criminal penalties, including custodial sentences in the most serious cases.
The new excise duty, announced at last year's Autumn Budget, will apply to all vaping liquids regardless of whether they contain nicotine. The duty will be charged at £2.20 per 10ml and becomes payable when products enter UK consumption.
Under the new rules, manufacturers will be required to submit monthly duty returns, pay the tax due and affix an official vaping duty stamp to products when they are packaged for retail sale.
Retailers will be permitted to continue selling unstamped stock already in their possession until 31 March 2027. However, any new duty-liable products purchased from 1 October onwards must carry a vaping duty stamp.
From 1 April 2027, all vaping products on sale in retail premises must display the duty stamp, with unstamped products liable to seizure by enforcement authorities.
HMRC said businesses that have already submitted applications do not need to take any further action unless contacted for additional information.
The department also outlined new rules for passengers bringing vaping products into Britain from overseas once the duty takes effect. Travellers aged 17 or over will be able to bring up to 50ml of vaping liquid into England, Scotland and Wales for personal use without paying duty. Any amount above that must be declared, with duty payable on the full quantity.
Separate arrangements will continue to apply in Northern Ireland, reflecting its post-Brexit trading framework.
The new tax forms part of a broader tightening of vape regulation. Last week, the UK government launched a 12-week consultation on proposals to introduce plain packaging, restrict flavour descriptions, standardise device colours and require vaping products to be kept out of sight in shops as part of efforts to reduce youth vaping. Further measures under the Tobacco and Vapes Act, including restrictions on vape vending machines and advertising, are also due to come into force over the coming months.
Businesses can apply for Vaping Products Duty and the Vaping Duty Stamps Scheme through GOV.UK, while customs warehousekeepers must contact their supervising office to obtain the necessary approvals.