HMRC Vaping Duty Stamps Scheme

Descriptions

At Autumn Budget 2024, the Government confirmed Vaping Products Duty (VPD) would be introduced from 1 October 2026. Following further technical consultation, the Government announced a Vaping Duty Stamps Scheme (VDS) to be implemented alongside the VPD. The response to the consultation is available on GOV.UK. HM Revenue & Customs (HMRC) will conduct a competitive flexible procurement exercise to appoint a Vaping Duty Stamp supplier via a concession contract. This supplier will support the implementation of the Vaping Duty Stamp (VDS) Scheme. Under the scheme, businesses will purchase duty stamps directly from the appointed supplier. The stamp will be a physical product incorporating digital features for traceability and authentication and will also capture data; such as information about the manufacturer or business who affixes the stamp, product details and product journey through the supply chain. The scheme will be managed by the appointed supplier, who will be responsible for production and supply, as well as providing the system to businesses to order, make payment, manage their stamps and collect data for HMRC relating to vaping products and the journey through the supply chain. The stamp must be applied before the product is released for consumption, and associated data will be recorded in the supplier's system. Businesses must register with HMRC to participate in the VDS scheme. Registration opens on 1 April 2026, and once approved, businesses will be eligible to purchase duty stamps from the appointed supplier.