Vaping Products Duty, explained
Vaping Products Duty (VPD) is the UK’s excise duty on vaping liquids. It came into force on the 1st October 2026. Since then, a flat rate of 22p per ml has applied to all vaping liquid, nicotine and non-nicotine alike. VAT comes on top.
Duty becomes payable at the duty point. That’s when liquid is manufactured, imported or released from an HMRC-approved duty-suspended warehouse. Every business that makes or imports vaping liquid for the UK market needs HMRC approval. In addition, products made or imported since October 1st 2026 need a duty stamp on their retail packaging.
In short, VPD has changed the cost, the cash flow and the compliance load of bringing a vape product to market.
Per 10ml
Flat duty rate on all vaping liquid, nicotine and non-nicotine.
VAT on top
Around £2.64 per 10ml once VAT is added to the duty.
Working days
HMRC approval can take up to 45 working days from application.
2026 go-live
Duty and duty stamps take effect for the UK market.
2027 grace ends
Selling older, unstamped retail stock stops being permitted.
VPD is live. Is your supply chain ready?
VPD has been live since 1 October 2026, and the next deadlines are close. Transitional stamp orders close on the 30th of November 2026. After that, you can only affix them until the 31st of December. From the 1st of January 2027, new stock needs digital stamps instead. Then, from the 1st of April 2027, every vaping product outside duty suspension must carry a valid stamp.
Meanwhile, HMRC approval still takes at least 45 working days. So if your manufacturer or importer isn’t approved yet, that gap won’t close quickly. Going it alone means building excise systems, getting a warehouse approved and funding duty on your stock upfront.
Alternatively, you can work with a partner that’s already set up. Xyfil holds HMRC approval for Vaping Products Duty and runs an HMRC-approved bonded warehouse. The excise infrastructure is already in place, so you don’t need to build it yourself.
Supplier risk
Without HMRC approval, a manufacturer can’t produce compliant stock for the UK market. If your supplier isn’t approved, your supply is at risk.
Cash-flow Shock
Duty on a finished stockpile can crystallise upfront, before a single sale, if it’s all held as taxed liquid.
Stamps & Packaging
Transitional stamps end on 31 December. After that, you’ll need digital stamps from Cartor Security Printers, HMRC’s appointed supplier, plus packaging that works with them.
Covered Now
Xyfil is HMRC-approved for VPD, with bonded warehousing in place. Production and duty-suspended storage are ready today, not pending.
Give us your headache.
Worried about VPD, or what it will do to your manufacturing costs? Talk to us. We carry the infrastructure and compliance load — approval, duty-suspended storage and compliant production — so you can keep your focus on the brand and the sale rather than the paperwork.
Components, not cash: protecting working capital
Duty crystallises at the duty point: manufacture, import, or release from an HMRC-approved warehouse. Stock held as components (concentrates, PG/VG) rather than finished vaping liquid is not subject to the £2.20 per 10ml charge while it sits in our HMRC-approved warehouse. Ask us how a component-form approach could let duty fall as units are finished and released, in line with your sales, rather than as one upfront hit on your whole stockpile.
Finished-stock model Upfront duty hit
Your entire stockpile × £2.20 per 10ml, duty due upfront, before a single sale, plus VAT on top. A large, one-off working-capital spike.
Component-form approach Pay as you release
Duty falls only as units are finished and released, under HMRC’s duty-suspension framework. The duty point can align more closely with your sales.
Duty is paid in full either way — component form changes the timing, not the amount. It’s about capital preservation and duty-point timing, not tax avoidance.
Illustration only, based on the published £2.20 per 10ml rate and standard VAT. Not tax advice. All duty, approval and stamp references should be confirmed against current GOV.UK / HMRC guidance and a qualified adviser.
See how much working capital you can keep free
Since the 1st of October 2026, VPD adds £2.20 per 10ml to every UK e-liquid — nicotine or not. The catch is the timing: the duty falls due when stock is released, not when it sells. Manufacture a whole run up front and you fund the full duty bill before the orders arrive. Enter your numbers to see what you keep free by holding your stock with us and releasing it to order.
Same total duty either way (£110,000). The figure above is duty you’re not paying ahead of sales — cash that stays in your business until stock is released. It is not a reduction in the duty you owe.
Hold your stock with us, not the duty bill
That’s the offer in one line: we hold your stock, so the duty point lines up with your sales instead of your production schedule. Tell us your volumes and we’ll map duty-deferred capacity to your release plan.
Thanks — we’ll send your figures over shortly.
For planning only. This tool models the timing of Vaping Products Duty, not the amount owed, and is not tax or financial advice. Figures use the published rate of £2.20 per 10ml (22p per ml) from 1 October 2026. Confirm your own position with HMRC guidance or a qualified adviser before acting.
One partner to talk to about the whole VPD picture
End-to-end white-label e-liquid manufacturing, built around what VPD requires: flavour development, compliant production, and a clear-eyed approach to duty stamps and duty-suspended stock.
Manufacturing since 2014
Xyfil has made e-liquid in Preston since 2014, working through TPD and TRPR. Today, we also hold HMRC approval for Vaping Products Duty.
Component-form stockholding
Ask us about holding stock as duty-suspended components rather than finished, taxed liquid, in our HMRC-approved bonded warehouse, so your duty point can align with your sales.
Duty-suspended logistics
We move duty-suspended stock under HMRC’s Excise Movement and Control System (EMCS), and can map how that works for your brand.
A UK route for overseas brands
For brands based outside the UK, we can act as your UK duty representative. We handle registration, stamp requisition, duty accounting and HMRC liaison, giving you a compliant route to market.
Import part-finished, finish in the UK
Ship part-finished goods to us under duty suspension. We then complete assembly, stamping and casing here in the UK. As a result, your stamps never travel in transit, and you keep an onward duty-suspended movement.
Duty stamps & packaging
We apply duty stamps as part of approved production and keep them in secure UK custody. We’ll also help you get stamp-compatible packaging right ahead of the move to digital-only stamps on the 1st of January 2027.
Explore the rest of what Xyfil does
VPD doesn’t sit on its own. Here’s how it connects to the rest of our manufacturing and compliance work.
Common questions about Vaping Products Duty
What is Vaping Products Duty (VPD)?
VPD is the UK’s excise duty on vaping liquids. It came into force on 1 October 2026 and applies a flat £2.20 per 10ml to all vaping liquid, with VAT on top. Manufacturers and importers need HMRC approval, and products need a duty stamp on their retail packaging.
What are the key VPD dates now it’s live?
VPD and duty stamps went live on 1 October 2026. Transitional stamp orders close on 30 November 2026, and the last day to affix them is 31 December 2026. From 1 January 2027, new products need digital stamps. Meanwhile, you can sell unstamped stock made or imported before 1 October 2026 until 31 March 2027. Finally, from 1 April 2027, all vaping products outside duty suspension need a valid stamp.
What should a VPD-compliant manufacturer have in place?
A compliant manufacturer needs HMRC approval, correctly applied duty stamps and a clear handle on the duty point. It also needs to move duty-suspended stock compliantly under EMCS. Xyfil is HMRC-approved for VPD and runs an approved bonded warehouse, so that’s what we bring to the brands we produce for.
How does component-form manufacturing affect my cash flow?
When stock is held as components rather than finished, taxed liquid, duty isn’t triggered on warehoused inventory. Duty is still paid in full; only the timing changes, falling as units are finished and released rather than landing as one upfront hit. (Illustration, not tax advice.)
My current manufacturer isn’t approved for VPD. Can you help?
Yes. Xyfil is HMRC-approved for VPD and bonded warehousing, so we can offer you a compliant route now. If your supply is at risk, talk to us soon. The earlier we speak, the more options you’re likely to have, subject to production availability.
I’m an overseas brand. Can Xyfil get my product into the UK?
Yes. Xyfil holds HMRC approval and UK duty representative status. So we can act as your UK representative, store your stock under duty suspension, then stamp and fulfil it here. Tell us where you’re starting from, and we’ll map the right route.
Can I still sell stock without a duty stamp?
Only legitimate stock made in, or imported into, the UK before 1 October 2026, and only until 31 March 2027. Anything made or imported since then needs a stamp before it reaches the market.
VPD is a headache. Let’s make it manageable.
Tell us where you are on approval, stamps and production. Then we’ll talk through your options, whether you’re switching manufacturer, importing into the UK or outsourcing stamping and finishing.
