UK Introduces New Vaping Products Duty to Combat Youth Use

The UK government is set to implement a new Vaping Products Duty (VPD) aimed at tackling the rising rates of youth vaping. According to the August 2025 edition of the Employer Bulletin from HM Revenue and Customs (HMRC), manufacturers, importers, and retailers of vaping products must comply with updated regulations by October 1, 2026. This initiative includes an excise duty of £2.20 per 10 ml on vaping liquids, which will be levied in addition to the existing 20 percent VAT.

The introduction of this duty is designed not only to curb youth access to vaping products but also to combat the trade in illicit e-liquids. As part of the new regulations, all vaping products sold in the UK will require a duty stamp featuring both physical and digital security features, including QR codes for tracing and authentication. This approach mirrors existing controls used for tobacco and alcohol, highlighting the government’s commitment to public health and safety.

Key Dates and Compliance Requirements

From April 1, 2026, businesses involved in the manufacture, import, or sale of vaping products will need to apply for HMRC approval to operate under the new scheme. This application process may take up to 45 working days, making it crucial for companies to start preparing immediately to avoid disruptions. By October 1, 2026, all retail units of vaping liquid must display the new duty stamp, with a grace period extending until April 1, 2027. After this date, products lacking the approved stamp may be seized, and businesses could face substantial fines or even criminal charges.

Although the vaping duty falls under excise rules rather than payroll systems, its implications will resonate across various sectors. Retailers can expect increased product costs and must ensure that staff are trained to handle compliance procedures, such as verifying legitimate stamps and recording duty payments. This shift may also lead to indirect pressures for payroll and HR teams. Employees might raise concerns regarding affordability as prices rise, necessitating adjustments to budgets for additional training and compliance.

Wider Implications for Businesses and Society

The introduction of the vaping duty signifies a crucial moment in the UK’s approach to vaping products, driven by escalating political and public concern surrounding youth consumption. Ministers anticipate that higher prices, along with stricter packaging and advertising regulations, will make e-liquids less accessible to younger audiences. Furthermore, the stamping requirement is expected to diminish the circulation of unregulated or counterfeit products.

The August bulletin emphasizes that the vaping duty is not merely a compliance issue but represents a substantial shift in how vaping products are manufactured, imported, and sold throughout the UK. HMRC strongly encourages businesses to act promptly ahead of the October 2026 deadline. Failure to secure authorization in time could result in operational disruptions and the removal of stock from the market.

As the application window opens in April 2026, retailers and employers are urged to begin preparations immediately. By doing so, they can avoid penalties and ensure that their supply chains remain intact while contributing to broader public health efforts aimed at reducing youth vaping in the UK.