UK to Introduce Vaping Duty Stamps Scheme in October 2026

The UK government has announced the details of a new Vaping Duty Stamps (VDS) scheme, set to launch on October 1, 2026. This initiative is designed to support the effective implementation and enforcement of the new Vaping Products Duty (VPD), which was confirmed in the Autumn Budget 2024. The scheme will require all vaping products manufactured in or imported into the UK to carry a duty stamp, ensuring tax compliance and helping to identify illicit goods.

The VDS scheme will impact a wide range of stakeholders, including manufacturers, importers, wholesalers, retailers, and consumers. From April 1, 2026, businesses must apply for approval from HM Revenue and Customs (HMRC) to purchase and affix these stamps. Only approved individuals and entities will be issued stamps, increasing oversight of the market. A transitional duty stamp will be available to help businesses adjust during the interim period.

The primary policy objective is to reduce the affordability and appeal of vaping products to young people and non-smokers while maintaining a financial incentive for adult smokers to switch to less harmful alternatives. By making non-duty paid products easily identifiable, the scheme empowers enforcement bodies, retailers, and consumers to spot illicit items. This is part of a broader strategy to regulate the industry, protect public health, and ensure fair competition.

To enforce the new rules, the measure introduces civil penalties and criminal offenses. Authorities will have powers to seize goods, and courts may ban premises from being used as vape shops if criminal dealing in stamps occurs—a move aimed at preventing organized crime groups from simply reopening under new names. HMRC will also gain new information-sharing powers to collaborate with other enforcement agencies.

Estimated Financial Impact

The introduction of the scheme carries specific financial implications for both the government and businesses:

Exchequer Income: The government forecasts revenue generation starting with £5 million in 2026-27, rising to £25 million annually by 2027-28.
Business Costs:
- One-off Costs: Considered negligible, covering familiarization and registration.
- Continuing Administrative Costs: Estimated at approximately £10 million per year for purchasing stamps, data uploading, and scanning.
HMRC Costs: Approximately £4 million in capital costs to develop IT systems between 2024-25 and 2026-27.

For consumers, the measure provides clarity on product legitimacy but may lead to price increases if manufacturers pass on these compliance costs.

This scheme follows a consultation period that closed in December 2024 and is legislated under the Finance Bill 2025-26. With the operational date set for October 2026, the vaping industry faces a significant period of adjustment to meet these new compliance standards.

Policy paper: Vaping Duty Stamps scheme information

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.