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 (VDS) scheme to be implemented alongside VPD. The response to this consultation is available on GOV.UK here: https://www.gov.uk/government/consultations/vaping-products-duty-consultation HM Revenue & Customs (HMRC) will conduct a competitive flexible procurement exercise to appoint a VDS supplier via a concession contract. This supplier will support the implementation of the VDS scheme. Under the scheme, businesses will purchase duty stamps directly from the appointed supplier. The duty 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 • the product's journey through the supply chain. The scheme will be managed by the appointed supplier, who will be responsible for • production and supply of the duty stamps (including returns) • providing the system for businesses to order duty stamps, make payment, manage their duty stamps and collect data for HMRC relating to vaping products and their journey through the supply chain. The duty stamp must be applied before the product is released for consumption, and associated data will be recorded in the supplier's system. Businesses must be approved by HMRC to participate in the VDS scheme. Approval registration opens on 1 April 2026, and once approved, businesses will be eligible to purchase duty stamps from the appointed supplier.