Her Majesty's Revenue and Customs (HMRC) has announced that UK businesses can now apply for approval under the new Vaping Products Duty and the associated Vaping Duty Stamps Scheme. This significant step marks the beginning of preparations for the new tax, which is scheduled to come into effect from 1 October 2026. The application window is open to manufacturers, importers, and warehousekeepers of vaping products operating within the United Kingdom.
The Vaping Products Duty was initially announced by the Chancellor of the Exchequer, Jeremy Hunt, in the Spring Budget earlier this year. Its primary objective is to make vaping less attractive and affordable for young people and non-smokers, aligning with broader public health goals. While vaping is acknowledged as a tool to help adult smokers quit tobacco, concerns have grown regarding its increasing popularity among younger demographics who have never smoked.
Under the new regime, businesses involved in the supply chain of vaping products will be required to obtain approval from HMRC to legally operate once the duty is implemented. This involves registering for the duty and ensuring compliance with the Vaping Duty Stamps Scheme, which will likely involve visible stamps on products to indicate that the duty has been paid. The specific rates of duty will vary depending on the nicotine content of the e-liquid, with higher rates applied to products with greater nicotine strength.
For businesses, understanding and adhering to the application process is crucial. Failure to secure approval before the October 2026 deadline could result in severe penalties and the inability to legally trade vaping products in the UK. HMRC is expected to provide comprehensive guidance and support to assist businesses through this transition, ensuring a smooth implementation of the new tax framework.
The government's approach aims to strike a balance between supporting existing smokers in transitioning away from traditional tobacco and preventing the uptake of vaping among new users, particularly young people. This duty is part of a wider strategy that includes potential restrictions on disposable vapes and marketing regulations, signalling a tighter regulatory environment for the vaping industry in the coming years.
The introduction of this duty has been met with mixed reactions. While public health organisations generally welcome measures to curb youth vaping, some industry bodies have expressed concerns about the potential impact on businesses and adult smokers who rely on vaping as a less harmful alternative to cigarettes.
Source: HMRC