In October 2026, the UK Government will introduce a new Vaping Products Duty (VPD), which you might think of as a new vaping tax.
In this post we’ll outline everything you need to know about VPD, to help you prepare for October 2026.
If you sell vapes, either online or offline, we can help you get the specialist vape insurance you need at a price you can afford. For more information, call us on 0208 290 9080 or email ecig@anthonyjones.com.
What Is the Vaping Product Duty (VPD)?
VPD is a new excise duty on vaping products. The tax applies to vaping liquid, or e-liquid, rather than to vaping devices, and it will apply whether or not the liquids contain nicotine.
Initially, VPD will apply at a rate of £2.20 per 10ml of liquid. This means that there will be 44p duty applied to 2ml pods.
Why is the Government Introducing VPD?
The UK Government applies excise duties to goods that may be, in some way, harmful to human health, or to the environment.
Manufacturers and retailers already pay excise duties on cigarettes, alcoholic drinks, and fuels. And from October 2026, excise duties will apply to vape products, too.
This may be a means for reducing consumption of vaping products in the UK, as the new tax will certainly drive up the price of vaping. Or it may be to cover some of the costs associated with rising vape use in the UK, including certain health and environmental concerns.
What Do Vape Product Manufacturers, Importers and Retailers Need To Do?
If you manufacture or import vape products in the UK, from 1 April 2026 you will need to apply for approval for VPD, along with a Vaping Duty Stamps Scheme. You will need to get necessary approval by 1 October 2026, and it can take up to 45 days for HMRC to complete all of their checks. So this isn’t something you can leave until the last minute.
From 1 October 2026 all manufacturers, importers, and retailers will have to pay VPD on all vaping products sold in the UK. In addition, all vaping products will have to display a vaping duty stamp on the packaging.
On top of VPD, you will still have to pay VAT on vaping products. This effectively means that anyone buying a vaping product in the UK will be taxed twice for each purchase.
What About My Existing Stock?
You need to sell any stock that was manufactured before this new excise duty came in by 1 April 2027. After this, it will be illegal to sell any vape stock that does not carry the new duty stamps on the packaging, and there will be severe penalties for any breaches of this law.
Are You Ready for VPD?
If you manufacture or import vaping products in the UK, or if you sell vaping products online or in store, then the next year or so may be difficult for your business. You may have to take action to ensure you’re compliant. And as your prices will inevitably go up, you may experience a drop in sales, or you may find that your customers’ preferences start to shift.
At Anthony Jones, we offer specialist risk management and insurance services for UK vape businesses. Our expert support can help you safeguard your business over the next 12 months, and beyond. For more information, call us on 0208 290 9080 or email ecig@anthonyjones.com.
