A new excise duty on vaping liquids comes into force on 1 October, charged at £2.20 per 10ml and paid by manufacturers, importers and warehousekeepers approved by HM Revenue and Customs (HMRC).

Vaping Products Duty applies to all vaping liquids manufactured in, or imported into, the UK from that date, whether or not they contain nicotine. Liquids held in duty suspension, such as an authorised customs or excise warehouse, are exempt until they leave it.

The government said the duty is intended to reduce the affordability and appeal of vaping, especially to young people and non-smokers.

Karin Smyth, Minister of State for Health, said the public health advice was that “while vaping is less harmful than smoking and can help adult smokers to quit, children and non-smokers should never vape.”

“These measures are an important step in our ambition to tackle youth vaping by reducing the affordability of vaping products, which goes hand-in-hand with the work we are already doing to tackle the appeal and availability of vapes on our high streets,” she said.

HMRC said it is a commercial decision whether the duty cost is passed on to retailers and consumers. Its guidance on paying the duty sets the rate at 22p per millilitre, equivalent to 44p on a 2ml pod, with payments due by the 15th of each month. Business Matters has previously examined how the flat rate falls across different product formats.

Treasury analysis cited by HMRC indicates the duty is expected to raise more than £550m a year by 2030-31.

HMRC is launching the Vaping Duty Stamps Scheme alongside the duty, and stamps will start to appear on retail packaging from 1 October. HMRC said that once fully rolled out the stamps will provide digital traceability through the supply chain, enhance consumer protection and strengthen the fight against illicit trade.

Products manufactured in, or imported into, the UK from 1 October will need a duty stamp on their retail packaging. Transitional stamps without digital elements can be affixed until 31 December 2026, and HMRC said last month that approved businesses can buy them until 30 November 2026. From 1 January 2027, stamps with digital functionality become mandatory for new products.

Wholesalers and retailers have a six-month grace period to sell existing eligible unstamped stock that is not liable for duty, until 31 March 2027. From 1 April 2027, all vaping products sold in the UK must carry a valid vaping duty stamp.

HMRC has said businesses that only sell or distribute duty-paid vaping products, whether wholesale or retail, do not need to apply for approval under either scheme.

Approved manufacturers, importers and warehousekeepers will have to report the movement of vaping products through the supply chain. HMRC said that in due course retailers and customers will be able to scan digital stamps to check whether a product is authentic. It said consumers should only buy duty-stamped products, and anyone who suspects a product may be illicit can report it to HMRC.

James Murray, Financial Secretary to the Treasury and Paymaster General, said: “Our new measures will help get illicit vapes off high streets across the country. We’re backing all those retailers who play by the rules by making it easier for law enforcement agencies to take action against those who don’t.”

Tobacco duty rates also rise on 1 October, in a one-off pro-rata increase of £2.20 per 100 cigarettes or per 50 grams of tobacco, on top of the standard tobacco duty escalator. The government said the increase is intended to maintain the financial incentive for current smokers to switch to vaping.

New personal allowances for travellers take effect on the same day. Travellers arriving in Great Britain can bring up to 50ml of vaping liquid for personal use without paying duty and tax. Amounts above that must be declared, with duty paid on the full quantity.

In Northern Ireland, vaping products brought in from outside the EU count towards the existing £390 duty-free allowance for other goods, or £270 for those travelling by private plane or private boat. Products brought into Northern Ireland from the EU must be for personal use, and additional checks may apply to anyone carrying more than 200ml of vaping liquid.

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