UK Vaping Tax – What is happening? 

The UK Government has confirmed it will introduce a new tax on vaping products, called Vaping Products Duty, from 1 October 2026. This is the first time vaping products will be subject to a specific excise duty in the UK.

  • The tax will apply to all vaping liquids intended for vaporisation, whether they contain nicotine or not.
  • The duty will be charged on products manufactured in or imported into the UK.

How much will the tax be?

The duty will be charged at a flat rate of £2.20 per 10ml of e-liquid (equivalent to 22p per ml).

For example:

  • A 2ml pod = £0.44 duty
  • A 10ml bottle = £2.20 duty

This rate applies regardless of nicotine strength.

Key Dates at a Glance

  • 1st April 2026 – Registration opens for manufacturers and importers
  • 1st October 2026 – Vaping Products Duty begins & duty stamps required
  • 1st April 2027 – All products must carry duty stamps to be sold

What does this mean for you? (Retailers, Distributors & B2B Customers)

1) Product Costs Will Increase: The new duty will add a fixed cost to every ml of vaping liquid. This will likely lead to higher wholesale and retail prices across the market.

2) Duty Stamps Will Be Required: From 1 October 2026, all retail vape products must carry a vaping duty stamp on the packaging.

From 1 April 2027, unstamped products cannot be legally sold in the UK.

3) Ongoing VAT Still Applies: The new duty is in addition to VAT, not a replacement.

What does this mean for Supreme PLC and our customers?

At Supreme PLC, we are actively preparing for these changes. Our priorities are to:

  • Ensure full regulatory compliance
  • Minimise disruption to supply chains and availability
  • Work with our B2B partners to manage pricing, stock planning, and labelling requirements
  • Continue providing high-quality, compliant vaping products to the UK market

Retailer FAQs

Do I need to register with HMRC as a retailer? Retailers do not need to register for vaping duty unless they manufacture or import products. However, retailers must ensure all stock sold is compliant and duty stamped from April 2027.

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Can I sell existing stock after 1 October 2026? Yes. Existing stock can continue to be sold during the transition period, but all products must be duty stamped/taxed by 1 April 2027.

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What happens if I sell unstamped (non-tax) products after April 2027? Selling unstamped (non-tax) vaping products after this date will be illegal and could result in penalties, product seizures, and enforcement action from HMRC.

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Does the duty apply to nicotine-free products? Yes. The duty/tax applies to all vaping liquids intended for inhalation, regardless of nicotine content.

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Will vape prices increase? Yes. The duty/tax applies to every ml of e-liquid and will increase wholesale costs across the market.

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How will Supreme PLC support retailers?

Supreme PLC will:

  • Supply fully compliant, duty‑stamped products
  • Provide guidance on transition stock management
  • Communicate pricing and product updates in advance
  • Support customers through account managers and trade communications

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Please note: After 31 March 2027, any unstamped stock in the market place cannot legally be held, bought or sold by businesses. It is therefore vital that that unstamped (untaxed) stock is sold to consumers before then.

Need More Information?

If you have any questions about how the new duty may affect pricing, stock planning, or product compliance, please contact your Supreme PLC account manager or email sales@supreme.co.uk