The UK's HM Revenue and Customs (HMRC) has officially confirmed that a Vaping Products Duty (VPD) and a Vaping Tax Discount (VDS) system will be implemented in the UK from October 1, 2026. This tax applies to all e-liquids, with a flat rate of £2.20 per 10ml. Relevant businesses must complete registration and approval by April 1, 2026. The VDS system will take effect in October 2026, with a six-month grace period. From April 2027, products without VDS will be prohibited from sale.

On October 1, 2025, HMRC (Her Majesty's Revenue and Customs) officially announced that it will implement the Vaping Products Duty (VPD) and Vaping Duty Stamps (VDS) scheme in the UK from October 1, 2026. According to the HMRC press release received by 2Firsts, this announcement marks the formal implementation of the policy.

According to the announcement, the new consumption tax will be levied on all e-cigarette liquids sold or supplied in the UK at a flat rate of £2.20 per 10ml, regardless of whether they contain nicotine. All retail units must also display an e-cigarette tax stamp. Registration approval will begin on April 1, 2026, and will apply to manufacturers, importers, warehouse operators, and UK representatives of overseas manufacturers. HMRC stated that the approval process may take up to 45 working days, and relevant companies should prepare in advance to avoid business disruptions.

The tax invoice system will be implemented from October 2026, with a six-month grace period allowing existing products to continue to be sold. From April 1, 2027, all e-cigarette products without tax invoices will be prohibited from sale. Companies that fail to comply with the new requirements may face civil or criminal penalties, including fines and prosecution.

According to a press release from HMRC received by 2Firsts, Rachel Nixon, HMRC's Director of Indirect Taxation, stated:

“We are working closely with the e-cigarette industry to address these changes. We encourage businesses to visit GOV.UK and search for ‘prepare for vaping duty’ for guidance and the latest information. Early preparation is crucial to ensuring a smooth transition and avoiding operational disruptions.”

This policy is part of the UK government's "Plan for Change," aimed at creating a smoke-free generation and reducing e-cigarette use among youth. Alongside HMRC's tax reform, DHSC and Defra are pushing forward with related supporting policies: the ban on single-use e-cigarettes came into effect on June 1, 2025, and future measures may include flavor restrictions and locations where e-cigarettes are prohibited; related details are contained in the Tobacco and Vapes Bill currently being pushed forward in Parliament.

Regarding traditional tobacco, the British government had previously adjusted cigarette taxes. According to Reuters (March 2024) and the Financial Times (October 2024), the Chancellor of the Exchequer announced in the budget that cigarette taxes would be increased, with a further increase in October 2026, to maintain coordination with e-cigarette tax policies.

HMRC urges relevant companies to take immediate action to ensure compliance and business continuity. More operational details are expected to be released in 2026.