UK e-liquid duty 2026: everything you need to know

The legislation behind the duty

The Vaping Products Duty (VPD) is an excise duty established under the Finance Act following consultations between 2024 and 2026. It sits within HMRC's excise duty framework alongside tobacco duty, alcohol duty and hydrocarbon oil duty.

The legislative timeline:

The duty mechanics in detail

VPD is a volume-based excise duty. The structure is intentionally simple compared with the original tiered proposal.

The Vaping Duty Stamps Scheme

The duty stamps scheme runs alongside VPD as the enforcement mechanism. Every retail-ready vape product (containing liquid) must carry a valid duty stamp.

The stamp combines physical and digital features for authentication and traceability. It captures data about the manufacturer, the product and the journey through the supply chain. HMRC can verify authenticity and check duty has been paid.

• Supplier: Cartor Security Printers Limited, appointed by HMRC under a 5-year concession contract worth £32m.
• Physical features: Tamper-evident stamps with security printing techniques similar to passport and banknote anti-counterfeit measures.
• Digital features: Each stamp links to records in the supplier's system identifying the producer, product and movement history.
• Application: The stamp must be applied to the retail packaging before the product leaves duty suspension.
• Ordering: Approved businesses order stamps directly from Cartor through the supplier's system. Payment and data capture are managed by the supplier.
• Verification: HMRC and Trading Standards can use stamp data to verify legitimate supply chain provenance.

Who needs to register with HMRC

The VPD approval scheme applies to businesses producing, importing or holding duty-suspended vape products. Consumer-facing retailers do not need to register directly with HMRC for VPD (although they will need to ensure their stock is properly stamped).

1. UK manufacturers of e-liquid

   Anyone producing vape liquid in the UK must register for both VPD and the Vaping Duty Stamps Scheme. Required to apply stamps before product leaves their premises.

2. Importers

   Any business importing vape products into the UK must register and either apply stamps before release or import the product into a duty-suspended warehouse for stamping.

3. Excise warehouse keepers

   Operators of approved excise warehouses storing duty-suspended vape products must register for VPD compliance.

4. Registered consignors and authorised consignees

   Businesses involved in moving duty-suspended product between EU and UK locations.

5. UK retailers

   Do not need to register with HMRC for VPD directly. But are responsible for ensuring all stock they sell carries valid duty stamps from 1 April 2027 onward. Trading Standards enforces this.

HMRC approval can take at least 45 working days, with longer times if additional information is required. Businesses are urged to apply as early as possible.

Penalties and enforcement

The duty regime is backed by significant civil and criminal penalties. HMRC has stated penalties relating to vaping duty stamps apply from 1 April 2026.

Northern Ireland specifics

Northern Ireland has some specific arrangements under the Windsor Framework. The duty applies in the same way as in Great Britain, but with additional considerations for trade with the EU.

• Same rate: £2.20 per 10ml across the whole UK including Northern Ireland.
• EU movements: Vape products moving between Northern Ireland and EU member states are subject to additional documentation requirements.
• NI-to-GB movements: Vape products moving from Northern Ireland to Great Britain are treated as UK domestic for duty purposes but require excise movement documentation.
• Stamp scheme: Northern Irish retail products require the same UK duty stamps as Great Britain.
• Wider EU vape duty: Some EU countries have their own vape duties (Germany around €0.20/ml, Italy with progressive rates). Products imported into Northern Ireland for onward EU sale may face additional EU member state duties.

Revenue forecasts and policy goals

HM Treasury analysis projects significant revenue from the duty over the coming years.

The government has framed the duty as serving multiple policy goals simultaneously: raising revenue, discouraging youth uptake, maintaining the price gap with smoking, and funding public services including the NHS.

How the UK rate compares internationally

The UK's £2.20 per 10ml is roughly in the middle of international vape duty rates.

• Germany: Around €0.20/ml (£0.17/ml). Lower than UK on per-ml basis.
• Italy: Around €0.13/ml for nicotine, lower for non-nicotine. Tiered structure.
• Latvia: €0.18/ml. Among the lower rates in the EU.
• Poland: Around 0.55 PLN/ml (£0.11/ml). Lower end.
• Portugal: Around €0.35/ml. Higher than UK.
• UK (from October 2026): £0.22/ml. Roughly mid-table among countries with vape duty.
• United States: No federal duty. State-level varies, some have 95% wholesale taxes (Minnesota), some have nothing.

The UK rate is set at a level that makes a meaningful price impact without making vaping more expensive than smoking, which would be counterproductive to the harm reduction policy.

Frequently asked questions

The bottom line