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The UK will implement the electronic cigarette tax stamp scheme on October 1, 2026

Author.

LCS

Source:

Post time:

2025-12-12

The UK government announced the introduction of the Electronic Cigarette Product Tax (VPD) on November 26, 2025, which will be implemented on October 1, 2026. To support the effective implementation and enforcement of VPD, the Electronic Cigarette Stamp Duty (VDS) program will also be implemented from October 1, 2026.

 

Electronic Cigarette Stamp Duty Scheme

 

Starting from April 1, 2026, manufacturers or importers must apply for tariff stamps from the HM Revenue and Customs (HMRC) in the UK.

Starting from October 1, 2026, all electronic cigarette products manufactured or imported in the UK must be affixed with tariff stamps, which are approved by HMRC for distribution to individuals, manufacturers, and importers.

During the transitional period before the implementation of VDS, HMRC will provide transitional tariff stamps to support enterprises.

Violators will have their goods confiscated, face civil penalties, and criminal offenses. If there is a criminal transaction involving stamp duty, the court may order the prohibition of the relevant premises from being used as electronic cigarette shops for continued use.

 

Image source: (Official website of the UK government)https://www.gov.uk/government/publications/introduction-of-vaping-duty-stamps-scheme-on-1-october-2026/vaping-duty-stamps-scheme-information

 

 

Policy objectives

 

VDS enables law enforcement agencies, retailers, and consumers to quickly identify illegal products.

HMRC approves the purchase of VDS and restricts the supply of stamp duty, which will strengthen supervision of the electronic cigarette market, reduce the risk of evading VPD, and curb the sale of illegal electronic cigarette products.

VDS is part of a broader strategy to regulate the e-cigarette industry and protect public health, while ensuring fair competition and effective tax collection.

 

Effective date of the bill

 

The VDS program will open for approval from April 1, 2026.

Starting from October 1, 2026, with the Royal Approval of the 2025-26 Finance Act, tariff stamp pasting will become mandatory.

 

 

existing law

 

Currently, there is no consumption tax levied on electronic cigarette products in the UK. The VDS plan will be implemented in parallel with the new consumption tax (VPD).

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