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: Descartes cloud-based platform can help protect your cashflow, supply chain and compliance
Our 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.
With Descartes, you can:
- 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.
Why Descartes?
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.
By combining innovative technology, powerful trade intelligence and the reach of our network, we deliver the industry’s most complete offering of cloud-based logistics and supply chain management solutions.
Excise duty is complex, our software and expertise can help make it simple. Arrange to speak to one of our software experts today.