From today (1 October 2026), UK retailers face a new Vaping Products Duty on all vaping liquids, alongside requirements for vaping duty stamps. Non-compliant retailers could face fines of up to £10,000, with penalties increasing for repeat offences.
New Duty on Vape Liquid
The most noticeable change for consumers and retailers is the introduction of a new duty on vape liquid, charged according to volume at £2.20 per 10 ml, equivalent to 22p per ml. This applies to all vaping liquids, whether they contain nicotine or not, with the standard VAT rate of 20% continuing to apply.
Retailers should understand how the new duty could affect the price of the products they sell and be prepared to explain the changes to customers. They should explain that this is a government duty and that all responsible retailers will be implementing the same changes and the same price increases.
Labelling and Stamp Requirements
The new rules also affect how vaping products must be labelled and sold. The UK Vaping Duty Stamp will be a small rectangular security label measuring 18 mm × 42 mm, attached to the outermost retail packaging and positioned so that opening the product damages either the stamp or the packaging. After 31 December, all stamps must include a digital code that can be scanned for authentication and supply-chain traceability.
The government has allowed a six-month sell-through period during which retailers may still sell existing stock that was imported or manufactured in the UK prior to 1st October and is therefore not stamped. This sell-through period ends on 31 March 2027. From 1st April 2027, all vaping products must have a valid stamp.
Stock Review and Supplier Engagement
Retailers should review current stock and calculate how much unstamped stock may need to be sold by the deadline. They should maintain an audit trail of invoices and delivery documents to prove that the products were imported or manufactured before 1st October 2026.
Retailers should engage suppliers to confirm that any stock received after the October deadline will be compliant and have duty-paid stamps. If retailers believe they may have a surplus of stock that they will be unable to sell by the March 2027 deadline, they should discuss the possibility of returning it to their suppliers in exchange for compliant replacement products.
Handling Unstamped and Unsold Stock
If retailers are unable to exchange stock with their suppliers, they can consider running clearance discounts or bundle deals to clear unstamped stock before the deadline. Any stock not sold by 1 April 2027 cannot legally be sold without a duty stamp, meaning unsold inventory must be returned or responsibly recycled.
Retailers caught selling unstamped products after the grace period could face significant penalties. HMRC can seize non-compliant stock and issue fines of up to £10,000, with penalties increasing for repeat offences. In the most serious cases, businesses could also face criminal investigation, an unlimited fine or imprisonment.
Do not bin unsold stock: E-liquids and electronic components cannot go into standard general commercial waste or regular bins. Use licensed waste carriers or specialised electrical recycling providers, such as local recycling centres, to safely handle surplus hardware. Arrange a plan with your suppliers for suitable disposal, and review updates to the GOV.UK Vaping Products Duty guidance for compliance requirements.
