Vaping Products Duty, explained
Vaping Products Duty (VPD) is the UK’s new excise duty on vaping liquids, taking effect on 1 October 2026. From that date, a flat rate of £2.20 per 10ml applies to all vaping liquid — nicotine and non-nicotine alike — with VAT charged on top.
Duty becomes payable at the duty point: when liquid is manufactured, imported, or released from an HMRC-approved duty-suspended warehouse. Every business that manufactures or imports vaping liquid for the UK market needs HMRC approval and must apply duty stamps to packaging.
In short, VPD changes the cost, the cash flow and the compliance burden of bringing a vape product to market. Brands that plan for it early are the ones that move through 1 October without disruption.
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.
The deadline is live, and most brands are already behind
HMRC approval applications opened on 1 April 2026. With approval taking up to 45 working days and go-live on 1 October, the window to get approved, stamped and into production for a clean start is closing. Handling it alone means building excise infrastructure, getting a warehouse approved, and carrying the upfront cost of duty on your stock. Or you can talk to a manufacturing partner who is already working through it.
Approval crunch
No HMRC approval means no compliant production from 1 October. The clock on a 45-day process is already running.
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
Duty stamps (issued via Cartor Security Printers, HMRC’s appointed supplier) need sourcing, and packaging needs to be compatible with stamp sealing.
Continuity risk
If your current manufacturer isn’t VPD-ready, your supply is at risk from day one. Options narrow the closer you get to October.
Give us your headache.
Worried about VPD, or what it will do to your manufacturing costs? Talk to us. Our aim is to carry as much of the infrastructure and compliance load as we can, 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 the 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
From 1 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 in component form 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 in component form and blend to order, 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.
Over a decade of UK manufacturing
Established in Preston in 2014, Xyfil has manufactured through TPD and TRPR, and is now preparing for VPD.
Component-form stockholding
Ask us about holding stock as duty-suspended components rather than finished, taxed liquid, so your duty point can align with your sales.
Duty-suspended logistics
We can talk through how movement of duty-suspended stock under HMRC’s Excise Movement and Control System (EMCS) would work for your brand.
A UK route for overseas brands
For brands based outside the UK, talk to us about manufacturing, storage and fulfilment as a route to market here under VPD.
Built for brands of every size
Quality and value without sacrificing your margin. You don’t need to be a large brand to get a manufacturing partner who’ll help you grow.
Duty stamps & packaging
We can help you think through digital vs transitional duty stamps (issued via Cartor Security Printers, HMRC’s appointed supplier) and what stamp-compatible packaging means for your products.
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 new excise duty on vaping liquids, effective 1 October 2026. It applies a flat £2.20 per 10ml to all vaping liquid, nicotine and non-nicotine, with VAT on top. Manufacturers and importers need HMRC approval and must apply duty stamps to packaging.
When does VPD start and what are the key dates?
HMRC approval applications opened on 1 April 2026. Duty and duty stamps go live on 1 October 2026, and the grace period for older, unstamped retail stock ends 31 March 2027.
What does a “VPD-ready manufacturer” actually mean?
A VPD-ready manufacturer needs HMRC approval, correctly applied duty stamps, clear management of the duty point, and compliant handling of duty-suspended stock movement under EMCS. It’s what we’re working towards for 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 VPD-ready. Can you help?
Get in touch and we’ll talk through your situation. If your supply is at risk, the sooner we talk, the more options are likely to be open, subject to production availability.
I’m an overseas brand. Can Xyfil get my product into the UK?
Talk to us. We can discuss whether UK manufacturing, duty-suspended storage and fulfilment via Xyfil could give your brand a compliant route into the UK market under VPD.
VPD is a headache. Let’s make it manageable.
Tell us where you are on approval, stamps and production, and we’ll talk through your options ahead of 1 October.
