Understanding Vaping Product Duty (VPD) in the UK

From 1st October 2026, the new Vape Product Duty (VPD) tax will place a flat rate of £2.20 per 10 ml e-liquid, which is a 22p/ml increase on all vape liquid, excluding VAT.   

Importing vape products into the UK without handling excise duty correctly could result in immediate seizure, delay, denial of entry, or fines and penalties.  

The challenge: a new layer of complexity

From 1st October 2026, the UK government will introduce the Vaping Products Duty (VPD). For importers, manufacturers, distributors, and retailers, this means: 

Increased costs & margin pressures
New duties create financial risk if not managed efficiently. 

Compliance risk
Complex duty rules around excise vs customs warehousing can lead to costly errors or penalties.

Audit & reporting demands
Regulators will expect transparent auditable records of duty suspension storage and movement. 

Operational confusion
Many businesses conflate customs warehousing (which suspends import duties) with excise warehousing (which suspends excise duty). They are separate processes and mismanagement risks double duty payments. 

The solution: cloud based platforms that help protect your cash flow, supply chain and compliance

Descartes Customs and Regulatory Compliance software solutions take the complexity out of the Vape Products Duty (VPD) by integrating duty suspension, reporting and audit trails into one powerful platform. 

  • Manage excise warehousing properly
    Ensure VPD is suspended correctly in excise warehouses without confusion with customs processes.

  • Duty suspension & cashflow control
    Defer excise duty payments legally and effectively to protect working capital. 

  • Customs & Excise alignment
    Manage both customs duties and excise duties across your supply chain without overlap or errors. 

  • Regulatory confidence
    Stay ahead of HMRC audits and reduce the risk of fines, mis-payments, or reputational damage. 

  • Automated compliance & reporting
    Generate accurate reports and maintain auditable records for HMRC. 

The industry’s widest array of customs and regulatory compliance solutions

Descartes helps streamline cross-border customs compliance with preparation, filing and visibility solutions for cargo security, customs declarations, and other regulatory mandates in more than 10 countries for more than 25 years. 

> 100M

Compliance Filings per Year

360°

Control of Compliance Operations

2000+

Customers in Europe

Managing excise duty is complex. Descartes software helps streamline compliance and reporting.

Speak to one of our customs software experts today.