The <a href="/compliance">Vaping Products Duty</a> (VPD) launched on 1 October 2026, marking the most significant tax change to the UK vape industry since legalisation. Liquid nicotine is taxed at £2 per 10ml, while non-nicotine vapes are taxed at a flat rate of £0.30 per millilitre. For retailers, this means every bottle of e-liquid now carries a visible tax stamp from HMRC.
The immediate impact: wholesale prices rose across the board within the first 48 hours. Major distributors including Vapestreams and VapeZone passed on approximately 70-80% of the tax burden to trade customers. Consumer-facing prices at the till point saw smaller increases, as retailers absorbed some of the cost to maintain foot traffic.
What retailers must do now: register for <a href="/compliance">VPD tax</a> stamps via HMRC's online portal, ensure all in-stock products from 1 October display the correct stamp, and update pricing systems to reflect the new tax-inclusive cost basis. TrackElf helps by flagging which batches are pre-VPD stock (no stamp needed) versus post-VPD (stamp required), preventing accidental sales of unstamped inventory.