UK vaping excise duty: Key changes for vape businesses from 1 Oct 2026

From 1 October 2026, the UK Government will introduce excise duty on vaping products — a fundamental change that will reshape how manufacturers, importers, and distributors operate in the UK market.

New compliance obligations will include duty payment mechanisms, excise stamps, customs declaration requirements, and direct exposure to HMRC enforcement. In many respects this brings a regime in for vaping products which is similar to the existing regime for tobacco.

What is changing – and why it matters

The UK’s introduction of vaping excise duty creates obligations that many businesses in the sector have never faced before:

• A new specific duty rate applied per millilitre of vaping liquid
• Mandatory excise stamps to be affixed to all relevant products
• Updated customs and import declaration requirements
• Registration requirements with HMRC
• Potential for audits, assessments, and penalties for non-compliance

What are the penalties?

The consequences of getting this wrong — underpaid duty, incorrect declarations, missing stamps — can include financial penalties, seizure of goods, and reputational damage. In extreme cases breaches can lead to an unlimited fine and up to 2 years in prison.

What can organisations do now?

Organisations involved in manufacturing or selling vaping products, including online sales might want to consider:

1. Specific training for the team covering all aspects of the new regime — duty liability, registration, stamp requirements, declaration procedures, and HMRC expectations.
2. Putting in place a system to make sure the right declarations are done at the right time.
3. Putting a process in place to deal with any disputes which might arise.
4. Having a ccompliance health check – A structured review of your supply chain, product classification, and internal processes to identify risk areas.
5. Reviewing contracts with suppliers to check they match liabilities under the new regime.

If you require assistance with any of these points, our team can advise you. Contact Us to arrange a consultation.

John Grayston

Consultant

John Grayston is an experienced lawyer specialising in European law with a specific reputation and practice in the areas of European trade and customs law including export control and sanctions. 

John represents and advises clients on trade and customs compliance across Europe as well as representing clients in court proceedings before national courts and the European Courts of Justice.

Based in Brussels, John qualified as a solicitor but also practices as a Belgian avocat.

John serves as Honorary European Legal Counsel to the International Compliance Professionals Association (ICPA).

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john.grayston@puntersouthall.law

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