Vaping Products Duty: What Must Retailers Do Now?
Vaping Products Duty started on 1 October 2026. Check retailer approval rules, duty stamps and older stock with this practical SKN guide.
What must retailers do now that Vaping Products Duty has started? Check your suppliers, identify which stock needs a duty stamp and document any older unstamped stock you continue to sell. A shop that only sells duty-paid products does not need the same approvals as a manufacturer or importer.
Information checked on 2 October 2026.
What changed on 1 October 2026?
HMRC confirmed in its announcement published on 1 October 2026 that Vaping Products Duty and the Vaping Duty Stamps Scheme have started. This is an implemented change, not a proposal.
The duty is £2.20 per 10ml of vaping liquid. It applies to liquids manufactured in or imported into the UK from 1 October, including nicotine-free liquids. Duty suspension arrangements can defer the duty point. HMRC says approved manufacturers, importers and warehousekeepers pay the duty; whether the cost is passed through to customers is a commercial decision. VAT continues to apply.
Does my shop need HMRC approval?
HMRC’s retailer and wholesaler guidance, published on 9 July 2026, says businesses solely selling or distributing duty-paid products do not need approval for these schemes.
Check your actual activities before relying on that position. A business importing directly or manufacturing products has additional responsibilities. HMRC’s scope guidance, updated on 28 April 2026, includes UK and overseas manufacturers, importers and relevant warehouse businesses. Products made at home and substances intended for vaping can also fall within the rules.
For an owner-manager, a useful first step is to write down where each product comes from and who imports it. “We are a retailer” describes a sales channel; it does not answer every question about how the business obtains or prepares its stock. Ask your adviser to review any activity beyond buying finished, duty-paid products from a UK supplier.
Can I still sell unstamped stock?
Yes, where it was produced or imported before 1 October 2026, the transition allows sales until 31 March 2027. Keep evidence supporting that treatment. An unstamped delivery received now is not automatically eligible simply because the supplier calls it old stock.
From 1 April 2027, products outside duty suspension must carry a stamp. Plan to sell, return or otherwise lawfully deal with remaining unstamped stock before then.
What should I check on the packaging?
HMRC’s stamp guidance, updated on 26 August 2026, explains that stamps attach to the outermost retail packaging, so opening it damages the packaging or stamp. Digital stamps contain a scannable feature for authentication and tracing. Transitional stamps have physical security features without the digital element; from 1 January 2027, only digital stamps may be affixed.
Give receiving staff a simple escalation route. If a package looks inconsistent, put the query to the supplier before approving it for sale. Avoid relying on a photograph from a previous order: check the delivery actually received.
What records and commercial checks are sensible?
HMRC says relevant records should be kept for at least six years. Retain supplier details, invoices, delivery information, product and production/import details, and evidence of checks and action taken. If legitimacy cannot be established, do not buy, supply or sell the goods.
Alongside those compliance records, consider a short internal stock review. Give each unresolved batch an owner and a follow-up date. Compare revised supplier prices with your current selling prices and forecast how replacement stock could affect working capital. These are practical management suggestions, not extra statutory filing requirements.
Discuss changes with your bookkeeper before changing how purchases are recorded. A clear explanation from the supplier is more useful than assuming every price increase is entirely attributable to duty. Keep the commercial calculation separate from the evidence that a batch can lawfully be sold.
Frequently asked questions
Is nicotine-free liquid covered?
Yes. Nicotine-free status does not remove vaping liquid from the duty’s scope.
Must every retailer register?
No. The approval position depends on activities; selling only duty-paid products has a specific exemption from scheme approval.
Does the transition cover all unstamped products?
No. It covers qualifying stock produced or imported before 1 October 2026, with sales permitted until 31 March 2027.
Are retail price increases fixed by HMRC?
No. Passing on the duty cost is a commercial decision.
Speak to SKN Chartered Accountants
Need help reviewing supplier costs, stock records or cash flow? Contact SKN Chartered Accountants on 0121 551 7626.
Official sources were opened and checked on 2 October 2026; publication and update dates are shown beside the links. This article provides general information, not personalised tax or legal advice. Obtain advice appropriate to your activities before acting.