HMRC · Effective 1 October 2026

UK Vaping Products Duty & Stamps

A new excise duty on all vaping liquids takes effect on 1 October 2026. NG-Terminal's specialist excise team can handle every step — from HMRC approval to duty-suspended storage and stamp management.

Calculate My Duty → Speak to Our Team

Time to VPD Go-Live

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1 Oct 2026 — Duty payable & stamps required

£2.20per 10ml — fixed rate

£0.442ml pod / disposable

£2.2010ml bottle

£6.6030ml shortfill

£11.0050ml shortfill

What's Changing

The UK Vaping Products Duty — Explained

From 1 October 2026, HMRC will impose a new excise duty of £2.20 per 10ml of vaping liquid on all products sold in the UK — regardless of nicotine content, flavour, or product type.

Every manufacturer, importer, and warehousekeeper involved in the supply chain must be approved by HMRC and ensure all retail-ready products carry an official Vaping Duty Stamp before they reach consumers.

Applications opened 1 April 2026, and HMRC requires at least 45 working days to process — meaning the window to act is already closing.

View Key Dates →

🚨

The 45-Day RuleApply now — HMRC needs 45 working days minimum. Miss the October deadline without approval and you must stop manufacturing or importing.

⚠️

Single Entity RuleOne application per legal entity only. Joint applications are automatically rejected.

ℹ️

Overseas ManufacturersCannot apply directly. Must appoint an HMRC-approved UK Representative first — NG-Terminal can act in this capacity.

How We Help

NG-Terminal's VPD Services

As an AEO-certified customs broker with WOWGR authorisation and an excise-approved bonded warehouse at Heathrow, we handle the full compliance chain so you don't have to.

🏛️

HMRC Application Support

We guide you through EX61 / EX68 forms, premises plans, financial guarantee applications, and the full HMRC approval process — including acting as UK Representative for overseas clients.

🏭

Excise Bonded Warehousing

Store your vaping products at our Heathrow facility in full duty suspension. Pay duty only as stock is released — protecting your working capital with partial release flexibility.

🏷️

Duty Stamp Management

We manage stamp ordering, receipt, application, and audit trail on your behalf. Full accountability for transitional and digital stamps with 24-hour reporting to the UK Gateway.

📡

Track & Trace Scanning

Our warehouse uses HMRC-compliant PDA scanning mirroring the Tobacco Track & Trace system — strict sequence validation, aggregation scanning, and Gateway reporting all managed for you.

📊

Monthly Returns & Reporting

We prepare and submit your Vaping Products Duty returns (due 7th monthly) in XML schema 1.4 format and manage payment scheduling via duty deferment accounts.

Accreditations AEO Certified WOWGR Authorised BIFA Member BWA Member FIATA AICES RHA Member ISEA

Financial Planning Tool

VPD Duty & Cash Flow Calculator

Calculate your excise duty liability and see how much working capital you can protect by storing with NG-Terminal under duty suspension.

Duty & Savings Calculator

Enter your import details — we'll show your duty liability and the cash flow saving from duty deferment

Liquid volume per vape (ml)

e.g. 2ml for a disposable, 10ml for a bottle

Number of vapes / units

Total retail units imported or manufactured

Liquid volume per vape (ml)

e.g. 2ml for a disposable, 10ml for a bottle

Number of cartons

Total cartons in this shipment

Vapes per carton

How many individual vapes in each carton?

Months to sell through stock

How long before all units leave the warehouse?

Bank of England base rate (%)

Current rate — used to calculate financing saving

Retail price per unit (£)

Helps show duty as % of your retail price

Total Duty Liability

£0.00

£0.00 per unit

Cash Flow Saving

£0.00

with duty deferment over 3 months

Non-Compliance Risk

£0.00

up to 30% of duty bill if unmanaged

Total Benefit (Save + Risk Avoided)

£0.00

— % of retail revenue protected

Total units—

Total liquid volume—

Duty rate£2.20 per 10ml

Duty per unit—

Deferment period—

BoE base rate applied—

Financing saving (duty × rate × months)—

Penalty risk avoided (30% × duty)—

Combined benefit of using NGT—

💡 How is the cash flow saving calculated? If you pay duty upfront, you need to finance that amount — either via overdraft, credit line, or tied-up working capital. By holding goods in NG-Terminal's excise bonded warehouse, duty only becomes payable as stock is released. The saving is: Total Duty × BoE Rate × (Months / 12). This reflects the cost of financing equivalent funds at the current Bank of England base rate.

⚠️ This tool is for indicative planning only. Actual liability depends on HMRC-verified volumes. Contact our team for a tailored assessment.

✅ How NG-Terminal's bonded warehouse protects your cash flow Under HMRC excise duty suspension, goods stored at our Heathrow facility are not liable for duty until they leave. You release stock in batches as orders come in — paying only for what you sell, when you sell it. No upfront duty payment. No tied-up capital.

Get a Personalised Quote from NGT →

Quick Duty Reference by Product Type

Product	Volume	Duty / Unit	Typical RRP	Duty as % RRP	Annual duty (100k units)
Disposable vape	2ml	£0.44	£3–£5	9–15%	£44,000
Pod (refill)	2ml	£0.44	£3–£6	7–15%	£44,000
10ml e-liquid	10ml	£2.20	£3–£8	28–73%	£220,000
20ml bottle	20ml	£4.40	£6–£12	37–73%	£440,000
30ml shortfill	30ml	£6.60	£8–£18	37–83%	£660,000
50ml shortfill	50ml	£11.00	£12–£22	50–92%	£1,100,000
100ml shortfill	100ml	£22.00	£20–£35	63–110%	£2,200,000

⚠️ For high-volume products (50ml+), duty may approach or exceed current retail margins. A pricing strategy review is strongly recommended — speak to our team.

Regulatory Timeline

Key Dates & Deadlines

🚨

Act now — the window is closing. Applications opened 1 April 2026. HMRC needs a minimum of 45 working days to process. To be safe, apply by end of July 2026 at the latest — that's your last realistic window to guarantee approval before 1 October.

2025

Enacted

VPD Legislation

Finance Act 2025 passed. UK Vaping Products Duty framework established in law — sets the £2.20/10ml rate and October 2026 go-live date.

1 April 2026

Open Now

Applications Open

HMRC opened the VPD and Vaping Duty Stamps scheme applications. Stamp-related penalties also begin from this date — non-compliance is already enforceable.

📍

You Are Here

End of July 2026

Act Now

Last Safe Application Date

45 working days before 1 October falls on approximately 30 July 2026. Submit your application by then to guarantee approval in time. Apply earlier if possible — HMRC may ask for additional information.

31 August 2026

Deadline

Transitional Stamp Order Deadline

Last date to order non-scannable transitional stamps (physical security feature only — no data matrix). Minimum order 1,000 per reel or box. Non-refundable once ordered.

1 September 2026

Milestone

Digital Stamps Only

From this date, only digital stamps with a data matrix code (XML schema 1.4 scannable) can be ordered. These feed into the UK Gateway supply chain tracking system.

1 October 2026

D-Day 🚨

VPD Goes Live

Duty becomes payable at £2.20 per 10ml. Stamped products required on the market. Full duty and possession offences enforced. Monthly VPD returns begin (due 7th, payment due 15th).

1 April 2027

Hard Stop

Grace Period Ends

All non-duty-suspended products in circulation must carry valid stamps. HMRC gains full seizure authority over non-compliant stock anywhere in the supply chain.

Ongoing from Oct 2026 📄 VPD Return — 7th monthly 💰 Duty Payment — 15th monthly 📡 Gateway events — within 24h

Core Compliance Rules

Rule 1 — Critical

The 45-Day Authorisation Rule

HMRC takes at least 45 working days to process approvals. The last safe application date is approximately 30 July 2026. Without approval by 1 October 2026, you must stop manufacturing or importing vaping products entirely.

Rule 2 — Application

Single Entity Rule

One application per legal entity only. "All parts of the business must be controlled and managed by the same person or group of people jointly." Joint applications are automatically rejected.

Rule 3 — Overseas

UK Representative Mandate

Foreign manufacturers cannot apply directly. An HMRC-approved UK Representative must be appointed first and holds full legal and financial responsibility for duty stamps.

Rule 4 — Duty

£2.20 Flat Rate — No Exceptions

Applies uniformly to all vaping liquids — zero-nicotine, high-nicotine, salts. No reduced rate for any category.

Rule 5 — Movement

One Duty-Suspension Move

Once packaged for retail, products can only move in duty suspension once. All subsequent movements require duty to be paid first.

Rule 6 — Reporting

24-Hour Reporting Window

All physical events (Arrival, Dispatch) must be reported to the UK Gateway within 24 hours. Late reporting = compliance failure.

Requirements by Business Type

What Do You Need to Do?

Select your role to see exactly what's required — and where NG-Terminal handles it for you.

🌍 Overseas Manufacturer

Non-UK producers supplying the GB market

🚨

You cannot apply directly to HMRC. A UK Representative with existing HMRC approval must submit on your behalf. NG-Terminal can act as your UK Representative.

1
Appoint an HMRC-Approved UK RepresentativeMust already hold HMRC excise approval. They become legally and financially responsible for your duty stamps. NG-Terminal provides this service.
2
UK Rep submits your VDS applicationNG-Terminal submits the HMRC VPD registration forms and all supporting documentation including your overseas business structure, volumes, and tax history.
3
Financial Guarantee (via UK Rep)NG-Terminal arranges the financial guarantee or waiver eligibility evidence on your behalf.
4
Stamp ordering & managementOnly the UK Rep can order stamps. NG-Terminal manages procurement, allocation, affixing logistics, and full audit trail.
5
XML Schema 1.4 integrationNG-Terminal handles ATWD return submissions. You provide volume data; we handle the rest.
6
Supply under duty suspensionGoods enter NG-Terminal's Heathrow bonded warehouse. Duty is deferred until goods leave — protecting your cash flow.

🏭 UK Manufacturer

Businesses manufacturing vaping products on UK soil

✅

You can apply directly to HMRC for VPD approval and VDS scheme membership. NG-Terminal supports the application process and manages ongoing compliance.

1
Submit HMRC VPD Warehousekeeper + Premises ApplicationOne premises form per site. Include floor plan, security measures, CCTV layout, and stamp storage area.
🔴 Fire exits must be marked in RED on all premises plans.
2
Business Plan & 2 years of audited accountsCorporate structure, production volumes, tax compliance history required.
3
Financial Guarantee or WaiverQualify for waiver if above VAT threshold for 2+ years with no compliance issues. Otherwise, financial guarantee required.
4
Approved Store classificationManufacturing sites receive integrated Approved Store status — no separate excise warehouse approval required.
5
PDA scanning at production & dispatchDigital stamp data matrix scans reported to UK Gateway within 24 hours of each physical event.
6
Monthly VPD returnsSubmit by 7th of each month via HMRC online services. Payment due 15th.

📦 Importer / Importer of Record

Businesses importing vaping products into the UK

ℹ️

Two suspension options: Excise Warehouse (duty suspension only) or Customs Warehouse (suspends both customs duty + excise). NG-Terminal operates both.

1
HMRC approval before importingMust hold VPD and VDS approval before goods enter the UK supply chain. Apply at least 45 working days before 1 October 2026.
2
Customs declarations via approved brokerNG-Terminal handles customs declarations ensuring goods move into duty suspension correctly from arrival.
3
Stamps affixed before retail releaseProducts must carry valid duty stamps before leaving duty suspension. NG-Terminal manages stamp ordering and application.
4
Single duty-suspension move ruleOnce goods are packaged for retail, they can only move in duty suspension once. Duty must be paid before any further movement.
5
24-hour Gateway reportingAll Arrival and Dispatch events reported to UK Gateway within 24 hours. NG-Terminal handles this on your behalf.
6
Monthly returns & duty paymentReturns due 7th monthly. Duty due 15th. NG-Terminal prepares and submits all XML schema 1.4 returns.

🏢 Warehousekeeper

Excise and customs warehouses holding vaping products

⚠️

PDA scanning mirrors Tobacco Track & Trace. HMRC has confirmed the vaping scanning app is "similar" to the tobacco system. Strict sequence validation applies — all out-of-sequence events are rejected.

1
HMRC VPD Warehousekeeper ApprovalMust be submitted at least 45 working days before 1 October 2026. One application per legal entity.
2
HMRC Premises ApprovalFull security plan, CCTV placement, access controls, and stamp storage procedures required for each premises.
🔴 Fire exits must be marked explicitly in RED on all premises plans.
3
Sequence Validation — strict complianceBox A cannot register ARRIVE unless Box A was first DISPATCHED. Out-of-sequence scans are automatically rejected by the UK Gateway and flagged for investigation.
4
24-hour event reportingAll Arrival and Dispatch events reported to UK Gateway within 24 hours. Weekend events still within the window.
5
Duty payment on removalPay duty immediately when goods leave warehouse, or on the 29th if using a duty deferment account.
6
Full stamp audit trailLost or unaccounted stamps within 12 months trigger automatic penalty proceedings. Complete accountability required.

Compliance Planning

Readiness Checklist

Click each item to track your progress. Saved automatically in this browser.

0 of 13 complete

Phase 1 — Registration

Register for Government GatewayObtain your Government Gateway Organisation ID for all HMRC submissions and UK Gateway access.
Immediate
Enrol for UK Traceability GatewayRegister your business for the UK Gateway system used to report all scanning events.
Immediate

Phase 2 — HMRC Application

Appoint UK Representative (Overseas manufacturers only)Must hold existing HMRC approval. NG-Terminal provides this service.
Pre-application
Submit HMRC VPD Warehousekeeper ApplicationInclude premises details, financial guarantee or waiver evidence. Allow at least 45 working days for HMRC to process.
By end Jul 2026
Submit Premises Plan (fire exits marked in RED)One per premises. Floor plan, security layout, CCTV, stamp storage area. Fire exits must be marked in red.
By end Jul 2026
Business plan + 2 years audited accountsCorporate structure, production volumes, tax compliance history.
Before submission
Financial guarantee or waiver applicationCheck waiver eligibility: 2+ years above VAT threshold, no compliance issues. Otherwise arrange bank guarantee.
Before submission

Phase 3 — Stamps

Order Transitional Stamps (if required)Non-scannable, physical security only. Available until 31 August 2026. Non-refundable. Min 1,000/reel or box.
By 31 Aug 2026
Plan Digital Stamp inventory (from 1 Sep 2026)Forecast volumes and order digital stamps with data matrix for supply chain traceability.
From 1 Sep 2026

Phase 4 — Technical Integration

Integrate XML Schema 1.4 for ATWD returnsUpdate ERP/accounting to generate monthly ATWD returns in correct format. Validate against HMRC gateway schema.
Before 1 Oct 2026
Set up PDA scanning with sequence validationMirror Tobacco Track & Trace: cannot ARRIVE without prior DISPATCH. Test 24-hour Gateway reporting pipeline.
Before 1 Oct 2026
Configure carton/pallet aggregation (aUI)Single carton scan updates all child unit IDs in the Gateway system.
From 1 Oct 2026
Train warehouse staff on sequence validationEstablish escalation procedures for rejected events and Gateway connectivity failures.
Before 1 Oct 2026

Need help? Get a quote →

Technical Guidance

Stamps, Scanning & Supply Chain Tracking

Vaping Duty Stamps

TRANSIT

Type A

Transitional Stamp

📅 Available until 31 August 2026 🔒 Physical security only — not scannable ❌ No data matrix / digital feature ✅ Products may be released from 1 Oct 2026 ⚠️ Non-refundable once ordered 📦 Min 1,000 / reel (wet) or box (dry)

DIGITAL

Type B

Digital Stamp

📅 Available from 1 September 2026 🔒 Physical security layer ✅ Data matrix — PDA scannable ✅ UK Gateway traceability reporting ✅ Aggregation (aUI) carton/pallet support 📦 Min 1,000 / reel (wet) or box (dry)

💧

Format — Wet

Pre-Glued (Wet)

Machine-application compatible Supplied on reels — 1,000 per reel min Preferred for automated production lines

🏷️

Format — Dry

Unglued (Dry)

Manual application compatible Supplied in boxes — 1,000 per box min Suitable for smaller production runs

Parent–Child Aggregation

Click any node to inspect its code structure. One carton scan = all child units updated.

🏗️

PALLET-aUI-GB-001

Pallet Aggregate

aUI

📦

CARTON-aUI-GB-001-01

Carton Aggregate

aUI

🧴

UNIT-UI-GB-001-001

Unit — Digital Stamp

🧴

UNIT-UI-GB-001-002

Unit — Digital Stamp

⋯ 22 more units ⋯

PDA Sequence Validator

Mirrors Tobacco Track & Trace. Run a valid sequence or inject a violation.

DISPATCH: Carton-001 from FactoryManufacturer → Warehouse

ARRIVE: Carton-001 at WarehouseRequires prior DISPATCH for same unit

REPORT to UK Gateway (≤24h)Both events reported within 24-hour window

DISPATCH: Carton-001 to RetailerDuty paid — single suspension move used

ARRIVE: Carton-001 at RetailFinal movement confirmed in Gateway

⚠️ Violation rule: An ARRIVE event for a unit that has no prior DISPATCH record is automatically rejected by the UK Gateway and flagged for HMRC investigation.

Penalty Schedule — Key Violations

Violation	Effective From	Severity	HMRC Action
Lost, unaffixed or destroyed stamps (within 12 months)	1 Apr 2026	HIGH	Civil penalty + investigation
Altered or counterfeit stamps	1 Apr 2026	CRIMINAL	Prosecution + seizure
Unstamped products outside duty suspension	1 Oct 2026	HIGH	Seizure + civil penalty
Manufacturing / importing without HMRC approval	1 Oct 2026	CRIMINAL	Prosecution + stock seizure
Failure to report Gateway event within 24 hours	1 Oct 2026	MEDIUM	Civil penalty notice
Out-of-sequence scan (ARRIVE without DISPATCH)	1 Oct 2026	MEDIUM	Gateway rejection + HMRC flag
Late VPD monthly return (after 7th)	1 Oct 2026	MEDIUM	Surcharge + interest
Late duty payment (after 15th)	1 Oct 2026	MEDIUM	Interest + surcharge
Non-stamped products in market (after grace period)	1 Apr 2027	HIGH	Full seizure authority activated

⚠️ Under HMRC's standard penalty framework, non-compliance penalties start at 30% of unpaid duty for careless errors and rise to 100% for deliberate evasion. On a £220,000 duty liability (100k × 10ml bottles), that's a £66,000–£220,000 penalty exposure — plus potential criminal prosecution. Speak to NG-Terminal →

Work With NG-Terminal

Get a Quote

Tell us about your business and we'll put together a tailored VPD compliance and storage proposal. Our team typically responds within one working day.

Why choose NG-Terminal?

🏛️

AEO & WOWGR CertifiedHMRC-authorised excise operator. We can act as your UK Representative for overseas manufacturers.

🏭

Heathrow Bonded WarehouseExcise duty suspension from arrival. Partial release — pay only as you sell. Real-time MyNGT portal visibility.

🏷️

End-to-End Stamp ManagementWe order, receive, apply, and account for all duty stamps. Full audit trail managed for HMRC compliance.

📊

Monthly Returns HandledXML schema 1.4 ATWD returns prepared and submitted on your behalf. Never miss a deadline.

📡

24-Hour Gateway ReportingAll scan events reported within HMRC's 24-hour window. Sequence-validated PDA scanning on-site.

💰

Cash Flow ProtectionDuty suspension means no upfront duty payment. Preserve working capital with staged stock release.

Direct Contact

ngtbd@ng-terminal.com
+44 20 3582 2570

Unit 1, Templar House, Skyport Drive
Heathrow, UB7 0LJ

Request a VPD Compliance Proposal

Complete the form below and our excise team will be in touch within one working day.

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