HM Revenue and Customs has warned vaping businesses they must register now for a new excise duty regime or risk being unable to trade from October, as the government steps up regulation of the sector.

Under the new rules, all vaping products sold in the UK must carry a duty stamp, aimed at improving compliance and tackling illicit vape trade.

Retailers will be allowed to sell existing unstamped stock for six months, but from April 2027 all vape products must be fully compliant.

The duty will apply to all vaping liquids, including non-nicotine products, with a flat rate set at £2.20 per 10ml.

The move forms part of wider government efforts to reduce youth vaping and create a “smoke-free generation”, while also increasing tax revenues. Treasury analysis suggests the duty could raise more than £550m annually by the end of the decade.

Applications opened on 1 April for Vaping Products Duty (VPD) and the Vaping Duty Stamps scheme, with manufacturers, importers and warehouse keepers required to gain approval ahead of the 1 October 2026 launch.

HMRC Rachel Nixon director of indirect tax said: “From 1 April 2026, UK vape manufacturers, importers and warehousekeepers can apply to HMRC for Vaping Products Duty and Vaping Duty Stamps Scheme approval, which is essential for these businesses to continue trading legally from 1 October.

“Our guidance brings all the key information together, and using it now will help firms prepare properly, avoid errors and ensure they can continue trading when the new requirements apply from October.”

HMRC said businesses should begin preparations immediately, warning that approvals could take at least 45 working days and that failure to comply may result in penalties, fines or criminal prosecution.

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