Most small businesses can ignore this one. But if you make, import, warehouse or sell vaping products in the UK, HMRC has just opened the approval process for a new duty regime that could become a real headache if you leave it too late.
From 1 April, businesses can apply for approval for Vaping Products Duty and the Vaping Duty Stamps Scheme ahead of the rules going live on 1 October 2026. For smaller vape brands, specialist retailers, wholesalers and importers, that matters now because HMRC says approval can take at least 45 working days if it needs extra information.
What has changed
The headline change is that vaping liquid will face a new excise duty from 1 October 2026. HMRC says the rate will be a flat £2.20 per 10ml, whether the liquid contains nicotine or not. At the same time, individual retail vaping products produced in or imported into the UK will need duty stamps on their packaging.
Applications for the approval process opened this week. HMRC is aiming this first step mainly at manufacturers, importers and warehousekeepers, because they are the businesses that need formal approval to keep trading lawfully under the new system. Overseas manufacturers sending products into the UK will also need a UK representative for the stamps scheme.
Retailers are in a slightly different position. A normal shop does not need to become a duty-approved manufacturer just to sell compliant stock, but the new regime still affects how it buys, checks and manages stock. HMRC’s own briefing tells wholesale and retail sellers to read the guidance because they will be dealing with stamped and unstamped products during the changeover.
Why smaller firms should care now
The risk for SMEs is not really the announcement itself. It is the lead time. Businesses that need approval but leave it until late summer could end up squeezed by paperwork, supplier delays, packaging changes and stock planning all at once.
There is also a practical packaging issue. From 1 October, vaping duty stamps must be attached to the final retail packaging so the product cannot be opened without damaging the stamp or the pack. That means small brands using plain bottles, sleeves, cartons or contract packers may need to check now whether their packaging setup can handle the new rules cleanly.
HMRC is also creating a staged transition. Approved firms can buy transitional stamps until 31 August 2026, then digitally enabled stamps from 1 September. Retailers can keep selling older unstamped stock they already hold until 31 March 2027, but new duty-liable stock purchased after the October start point should come through the proper stamped route.
That may sound like a technical tax story, but it has obvious commercial consequences. Small operators will need to think about pricing, margins, ordering patterns and whether to run down old stock before October. For firms already juggling extra admin in other areas, it is another reminder that compliance work is starting earlier than the legal deadline, much as we have seen with Making Tax Digital for Income Tax.
What vape businesses should do next
First, work out which side of the rules you actually sit on. If your business manufactures in the UK, imports products, or stores goods in duty suspension, this is probably a direct action point now. If you mainly retail finished products, the immediate job is more about supplier due diligence and stock planning than filing the approval forms yourself.
Second, check who in the business owns the process. In a smaller company, compliance tasks often get passed around until nobody is clearly responsible. Someone needs to read the HMRC guidance properly, confirm whether approval is needed, and make sure any application is complete enough to avoid delays.
Third, speak to suppliers and packaging partners early. Ask how and when stamped stock will be available, what will happen to existing inventory, and whether your current packaging format creates any issues. If you import products, you also need to understand who is responsible for stamps, duty timing and record keeping.
Fourth, do not treat this as something to revisit in September. HMRC is already warning that incomplete applications can be paused while more information is gathered. That is exactly the sort of delay that catches smaller firms hardest.
The practical takeaway
For most SMEs, this will stay a niche sector story. For vape businesses, though, it is a serious compliance deadline with a long runway and several moving parts.
If your company makes, imports or warehouses vaping products, the safest move is to review the guidance now and decide whether you need HMRC approval straight away. If you run a retail business, use the next few months to pressure-test suppliers, packaging and stock plans before the October rules start to bite. The firms that treat this as an admin job for later could end up doing it at the worst possible moment.
Sources
- HMRC, HMRC says UK businesses should apply now for Vaping Products Duty, published 1 April 2026
- GOV.UK, Prepare for Vaping Products Duty and the Vaping Duty Stamps Scheme, accessed 2 April 2026
- GOV.UK, Introduction of Vaping Products Duty from 1 October 2026, accessed 2 April 2026
