Important Information for ELF BAE Customers & Retail Partners

Last updated: August 2026

From 1 October 2026, the UK will introduce a new excise duty on vaping products known as Vaping Products Duty (VPD).

The new duty represents a significant change for the UK vaping industry and will affect manufacturers, importers, wholesalers, retailers and ultimately consumers.

At ELF BAE LTD, we are preparing our retail and wholesale operations for these changes so that customers and trade partners can continue purchasing products with confidence through ElfBae.com.

This guide explains what Vaping Products Duty is, which products are affected, how duty stamps work and what retailers need to know about the transition period.

1. What Is Vaping Products Duty?

Vaping Products Duty is a new UK excise duty that comes into effect on:

1 October 2026

The duty applies to vaping liquid produced in or imported into the United Kingdom.

Unlike some previous proposals, the final duty is charged at a single flat rate regardless of nicotine content.

This means both nicotine-containing and nicotine-free vaping liquids can fall within the duty.

2. What Is the Vaping Products Duty Rate?

From 1 October 2026, the Vaping Products Duty rate will be:

£2.20 per 10ml of vaping liquid

This is equivalent to:

22p per 1ml

The amount of duty therefore depends on the volume of vaping liquid contained in the product.

Examples

Vaping Liquid VolumeVaping Products Duty
1ml£0.22
2ml£0.44
5ml£1.10
10ml£2.20
20ml£4.40
50ml£11.00
100ml£22.00

For example, a prefilled pod containing 2ml of vaping liquid attracts 44p of Vaping Products Duty.

3. Does VPD Apply Only to Nicotine Products?

No.

Vaping Products Duty applies whether or not the vaping liquid contains nicotine.

This is one of the most important aspects of the new system.

Qualifying products can therefore include both:

  • nicotine-containing vaping liquids; and
  • nicotine-free vaping liquids.

The rate remains the same regardless of nicotine strength.

4. Which Products Are Covered?

Vaping Products Duty applies to qualifying vaping liquid.

This can include liquid contained in:

  • refill bottles;
  • prefilled pods;
  • prefilled cartridges;
  • prefilled vaping devices; and
  • other products containing liquid intended to be vapourised by a vape.

The rules can also apply to substances intended for vaping, including certain:

  • propylene glycol (PG);
  • vegetable glycerine (VG);
  • flavourings; and
  • mixtures intended to form vaping liquid.

The exact treatment depends on whether the product falls within the legal definition of a vaping product for VPD purposes.

5. Nicotine-Free Products

Nicotine-free does not automatically mean duty-free.

If a nicotine-free liquid falls within the scope of Vaping Products Duty, it will be charged at the same rate:

£2.20 per 10ml

The rate is based on liquid volume rather than nicotine content.

6. VAT and Vaping Products Duty

Vaping Products Duty is separate from VAT.

VAT will continue to apply in accordance with normal UK VAT rules.

VPD therefore represents an additional excise-duty cost within the supply chain rather than a replacement for VAT.

For trade customers, quoted prices should always be checked to determine whether they are shown:

  • inclusive or exclusive of VAT; and
  • inclusive of applicable Vaping Products Duty.

7. Who Pays Vaping Products Duty to HMRC?

The party legally responsible for accounting for Vaping Products Duty depends on where and how the product enters the UK market.

This will commonly involve businesses such as:

  • UK manufacturers;
  • importers; or
  • other businesses releasing vaping products from duty suspension.

A retailer or wholesaler that only buys and sells duty-paid vaping products does not ordinarily need separate VPD approval simply because it sells those products.

However, businesses that manufacture, import, hold products under duty suspension, affix stamps or perform certain other activities may have additional HMRC obligations.

8. What Does This Mean for ELF BAE?

ELF BAE operates as both a retailer and wholesale supplier.

Where we purchase vaping products that have already been properly released onto the UK market with the applicable duty accounted for, our role is principally to ensure that the products we purchase, hold and supply meet the requirements applicable to retailers and wholesalers.

Our aim is to work with manufacturers, importers, distributors and suppliers that understand and comply with their VPD obligations.

We will also review stock entering our business during the transition period to help ensure that unstamped products have a legitimate basis for remaining on the market.

9. What Are Vaping Duty Stamps?

Alongside Vaping Products Duty, the government is introducing the Vaping Duty Stamps Scheme.

A vaping duty stamp is a secure physical stamp attached to the product’s retail packaging.

The scheme is designed to:

  • demonstrate that applicable products have entered the legitimate UK duty system;
  • improve traceability;
  • help retailers identify compliant products; and
  • assist HMRC in tackling illicit or untaxed vaping products.

10. Where Will the Duty Stamp Appear?

The duty stamp must be attached to the outermost retail packaging.

It must be positioned so that opening the package damages either:

  • the packaging; or
  • the duty stamp.

This is intended to make removal and reuse more difficult.

Duty stamps contain security features, and digital versions also include a scannable code designed to support authentication and supply-chain tracing.

11. Digital Duty Stamps

Digital vaping duty stamps will form the long-term system.

Digital stamps contain a scannable data feature that supports product authentication and supply-chain traceability.

They are designed to allow relevant parties and enforcement authorities to determine whether a stamp appears legitimate.

ELF BAE will monitor the implementation of the digital stamping system as it becomes part of normal industry practice.

12. Key Date – 1 October 2026

From:

1 October 2026

Vaping Products Duty formally takes effect.

From this date, liable vaping products newly released onto the UK market must have the appropriate vaping duty stamp attached.

This means manufacturers and importers releasing qualifying products for UK consumption after this date need to comply with the new duty and stamp regime.

13. What Happens to Existing Unstamped Stock?

There is a transition period for stock that was already produced or imported before the new rules begin.

Vaping products that were:

manufactured or imported before 1 October 2026

can continue to be stored and sold without a vaping duty stamp during the grace period, provided they legitimately qualify as pre-implementation stock.

This grace period runs until:

31 March 2027

14. Important Rule for Unstamped Stock After 1 October 2026

The transition period does not mean retailers can freely buy any unstamped stock after 1 October 2026.

If a retailer or wholesaler is offered an unstamped product after that date, there should be a legitimate reason why the product does not require a stamp.

For example, the supplier may be able to demonstrate that the product was manufactured or imported before 1 October 2026 and therefore qualifies for the transition period.

Retailers and wholesalers should keep appropriate evidence supporting that position.

If there is no satisfactory explanation for why a liable product is unstamped, it should not be purchased or sold.

15. ELF BAE Wholesale Stock During the Transition

For our wholesale customers, this distinction is particularly important.

During the transition period, ELF BAE may potentially supply a combination of:

  • qualifying pre-1 October unstamped stock; and
  • newly released duty-stamped stock.

Where unstamped stock is legitimately within the transition arrangements, appropriate records should be maintained within the supply chain.

Our goal is to provide our trade customers with sufficient information to understand the status of the products being supplied.

16. Key Date – 31 March 2027

The grace period for qualifying unstamped products ends on:

31 March 2027

Retailers should therefore plan their purchasing and stock rotation carefully during the period from October 2026 to March 2027.

Any legitimate unstamped transition stock should be:

  • sold;
  • returned where appropriate; or
  • otherwise lawfully dealt with

before the end of the transition period.

17. Key Date – 1 April 2027

From:

1 April 2027

all vaping products held outside a duty-suspension arrangement in the UK must carry an appropriate vaping duty stamp.

Retailers and wholesalers must not continue selling unstamped vaping products after this date.

This represents the end of the transition period.

18. Retailer Responsibilities From April 2027

From 1 April 2027, retailers should ensure that qualifying vaping products offered for sale carry the required duty stamp.

Businesses should not:

  • purchase unstamped liable products;
  • offer unstamped liable products for retail sale;
  • supply unstamped liable products to another retailer; or
  • continue holding transition stock for normal sale after the permitted period.

HMRC has powers to take enforcement action in relation to non-compliant goods.

19. Penalties and Enforcement

The vaping duty regime is backed by enforcement powers.

Where businesses hold, supply or sell products in breach of the rules, consequences may include:

  • seizure of products;
  • financial penalties;
  • further HMRC investigation; and
  • potentially criminal investigation in serious cases.

Retailers and wholesalers should therefore treat duty-stamp compliance as an important part of normal stock purchasing and checking procedures.

20. What Retailers Should Do Now

Retailers do not need to wait until October to start preparing.

We recommend reviewing:

  • current stock levels;
  • expected sell-through rates;
  • supplier arrangements;
  • purchasing quantities;
  • stock rotation;
  • staff awareness; and
  • record-keeping processes.

The aim should be to minimise the amount of legitimate unstamped transition stock remaining as the 31 March 2027 deadline approaches.

21. Review Existing Stock

Retailers should identify how much vaping stock they currently hold and estimate how quickly it is likely to sell.

This can help prevent excessive quantities of unstamped stock remaining close to the end of the transition period.

Particular attention should be given to:

  • slower-moving flavours;
  • older product lines;
  • discontinued ranges;
  • unusually large wholesale purchases; and
  • products with lower normal sales volumes.

22. Stock Rotation

Good stock rotation will become particularly important during the transition period.

Businesses should consider operating an appropriate first-in, first-out approach so that older unstamped transition stock is sold before newer stamped stock where commercially and operationally appropriate.

The objective should be to reduce legitimate unstamped stock steadily before 31 March 2027.

23. Keep Evidence for Unstamped Stock

If you purchase or hold unstamped vaping products after 1 October 2026, you should be able to demonstrate why they legitimately fall within the transition rules.

Relevant evidence could include appropriate:

  • supplier invoices;
  • purchase records;
  • delivery records;
  • stock records;
  • manufacturing or import information;
  • supplier confirmations; or
  • other documentation showing that the products qualify for the grace period.

Records should be retained in an organised way so they can be produced if required.

24. Check New Deliveries

From 1 October 2026, retailers and wholesalers should pay particular attention when receiving new vaping stock.

When applicable, staff responsible for accepting deliveries should check:

  • whether the product requires a duty stamp;
  • whether a stamp is present;
  • whether the packaging appears intact;
  • whether unstamped products have a legitimate transition explanation; and
  • whether supporting records are available where necessary.

Any concerns should be raised with the supplier before the products are placed on sale.

25. Train Your Staff

Staff responsible for:

  • purchasing;
  • goods-in;
  • stock management;
  • merchandising; and
  • retail sales

should understand the basic duty-stamp requirements.

They should know how to identify:

  • stamped stock;
  • legitimate transition stock;
  • potentially suspicious unstamped stock; and
  • the key compliance deadlines.

26. Work With Reliable Suppliers

The new duty regime makes supplier reliability even more important.

Retailers should purchase vaping products from suppliers that can provide appropriate information regarding the status of their stock.

A reputable supplier should understand:

  • when VPD applies;
  • the duty-stamp rules;
  • the grace period;
  • transition-stock requirements; and
  • the importance of maintaining a compliant supply chain.

This is particularly important when products are offered at unusually low prices.

27. Avoid Unexplained Unstamped Products

After 1 October 2026, an unstamped product is not automatically illegal because legitimate pre-October transition stock may remain on sale.

However, there should be a credible reason for the absence of a stamp.

If a supplier cannot provide reasonable evidence or explanation, businesses should consider the compliance risk before purchasing or selling the goods.

28. What VPD Means for Wholesale Pricing

Vaping Products Duty introduces a significant additional cost into the supply chain.

For example:

  • a 2ml product attracts 44p duty;
  • a 10ml product attracts £2.20 duty;
  • a 50ml qualifying vaping liquid attracts £11.00 duty; and
  • a 100ml qualifying vaping liquid attracts £22.00 duty.

These costs are likely to affect wholesale and retail pricing across the UK market.

Exact pricing will continue to depend on individual products, manufacturers, suppliers, margins and other costs.

29. What VPD Means for Retail Customers

Retail customers do not normally pay Vaping Products Duty directly to HMRC.

Instead, the duty becomes part of the overall cost associated with bringing the product legally onto the UK market.

As a result, retail prices for vaping products may change as manufacturers, importers, wholesalers and retailers adjust to the new regime.

At ELF BAE, we will continue working to provide competitive pricing while maintaining a compliant supply chain.

30. What VPD Means for Wholesale Customers

Our wholesale partners should expect changes across:

  • supplier pricing;
  • product packaging;
  • stock rotation;
  • invoices and documentation;
  • purchasing decisions;
  • margins; and
  • compliance checks.

ELF BAE will continue working with our suppliers and trade customers as these changes become part of normal market operations.

Our objective is to make the transition as straightforward as reasonably possible.

31. Home-Mixed Vaping Liquids

Vaping Products Duty can also apply to substances that are intended to be used as vaping liquid.

The rules are broader than simply finished nicotine-containing e-liquids.

Businesses that:

  • manufacture vaping liquids;
  • mix vaping products commercially;
  • import vaping liquids;
  • package them; or
  • otherwise perform activities beyond ordinary retail or wholesale distribution

should check whether they require HMRC approval or have direct duty obligations.

Retailers should not assume that a product is outside the duty merely because it contains no nicotine.

32. Retailers That Only Buy Duty-Paid Products

If your business only purchases and sells vaping products that have already entered the UK market with the applicable duty properly accounted for, HMRC’s current guidance states that you do not need to apply for Vaping Products Duty or Vaping Duty Stamps approval simply because you are a retailer or wholesaler.

Different rules can apply if your business also:

  • imports products;
  • manufactures vaping products;
  • stores goods under duty suspension;
  • affixes duty stamps; or
  • represents an overseas manufacturer.

Businesses involved in these activities should obtain appropriate guidance directly from HMRC.

33. Importing Vaping Products

Importers have additional responsibilities under the VPD regime.

Vaping Products Duty generally becomes due when imported vaping products enter UK consumption unless the goods immediately enter an approved duty-suspension arrangement.

Products released for UK consumption from 1 October 2026 must also meet the applicable duty-stamp requirements.

Businesses importing products directly should ensure they fully understand their responsibilities before goods enter the UK.

34. ELF BAE’s Compliance Approach

As the new regime comes into force, ELF BAE will continue reviewing our:

  • supplier relationships;
  • product sourcing;
  • purchasing procedures;
  • goods-in checks;
  • stock records;
  • wholesale processes; and
  • transition-stock management.

Our objective is to ensure the products we supply are purchased and handled through a responsible and compliant supply chain.

35. Supporting Our Trade Customers

Our wholesale customers should not have to navigate major market changes without information from their suppliers.

As implementation progresses, ELF BAE aims to communicate relevant developments affecting:

  • duty-stamped stock;
  • transition products;
  • pricing;
  • product availability;
  • purchasing;
  • compliance deadlines; and
  • stock management.

Where a question relates to a retailer’s individual tax or legal position, professional advice or HMRC guidance may still be required.

36. Key Dates at a Glance

Before 1 October 2026

Businesses should prepare their stock, systems and supplier arrangements.

Duty-stamped vaping products must not be released onto the open UK market before the new regime begins.

1 October 2026

Vaping Products Duty begins.

The duty rate is £2.20 per 10ml.

New liable products released onto the UK market must meet the applicable duty-stamp requirements.

1 October 2026 – 31 March 2027

Qualifying products manufactured or imported before 1 October 2026 may continue to be sold without a stamp.

Retailers should retain evidence supporting the status of unstamped transition products.

31 March 2027

Final day of the grace period for qualifying unstamped stock.

1 April 2027

All applicable vaping products outside duty suspension must carry a valid vaping duty stamp.

Unstamped products must no longer be supplied or sold through normal UK retail or wholesale channels.

37. Frequently Asked Questions

When does Vaping Products Duty begin?

Vaping Products Duty begins on 1 October 2026.

What is the duty rate?

The rate is £2.20 for every 10ml of vaping liquid, equivalent to 22p per ml.

Does the duty apply to nicotine-free liquids?

Yes.

The duty applies to qualifying vaping liquid whether or not it contains nicotine.

How much duty is charged on a 2ml pod?

A 2ml pod attracts:

44p of Vaping Products Duty

2ml × 22p = 44p.

How much duty is charged on a 10ml bottle?

A 10ml bottle attracts:

£2.20 of Vaping Products Duty

Does Vaping Products Duty replace VAT?

No.

VPD is a separate excise duty.

VAT continues to apply under the normal VAT rules.

Do retailers have to register for VPD?

If a retailer or wholesaler only buys and sells duty-paid vaping products, HMRC currently says they do not need VPD or duty-stamp approval simply for those activities.

Businesses involved in manufacturing, importing, duty suspension or stamp management may have additional requirements.

Do all products need a stamp from 1 October 2026?

New liable vaping products released onto the market from 1 October 2026 must meet the stamping requirements.

However, legitimate products manufactured or imported before 1 October 2026 can remain unstamped during the transition period until 31 March 2027.

Can I buy unstamped products after 1 October 2026?

Possibly, but you should be satisfied that there is a legitimate reason they are unstamped.

For example, they may be genuine pre-1 October transition stock.

You should retain appropriate evidence demonstrating why the goods do not require a stamp.

If the supplier cannot provide a credible explanation, the products should not be purchased or sold.

When does the transition period end?

The transition period ends on:

31 March 2027

What happens from 1 April 2027?

From 1 April 2027, all vaping products outside duty suspension in the UK must carry an appropriate vaping duty stamp.

Businesses must not sell unstamped liable vaping products from that date.

Will Vaping Products Duty increase vape prices?

VPD adds a new excise-duty cost of 22p for each millilitre of vaping liquid.

The extent to which this affects individual wholesale or retail prices will depend on the product and the businesses involved in the supply chain.

Will ELF BAE continue supplying wholesale customers after VPD begins?

Yes.

ELF BAE is preparing its wholesale operations for the new regime and intends to continue supplying trade customers with appropriately sourced vaping products as the duty system takes effect.

38. Stay Informed

Vaping Products Duty represents one of the largest changes to the UK vaping market in recent years.

Government guidance may continue to develop as businesses transition into the new regime.

Retailers should therefore keep up to date with official HMRC information and ensure that internal stock-management procedures remain appropriate.

ELF BAE will also continue monitoring relevant developments affecting our retail and wholesale customers.

39. Contact ELF BAE

If you are an ELF BAE wholesale customer and have questions about the status of stock supplied by us, please contact our team through ElfBae.com.

ELF BAE LTD
44 Century Square
Peterborough
England
PE1 3FR

Company Number: 14468196
Website: ElfBae.com

For questions concerning your business’s own registration, tax liability or direct obligations to HMRC, you should refer to current HMRC guidance or obtain appropriate professional advice.

Preparing for VPD Together

The introduction of Vaping Products Duty will change how vaping products move through the UK supply chain.

For ELF BAE, our priority is to make that transition as straightforward as possible for both our retail customers and wholesale partners.

We’ll continue focusing on:

Compliant sourcing. Reliable supply. Competitive pricing. Clear information.

ELF BAE – Retail & Wholesale, Ready for the New Vaping Duty Era.