How Brands and Retailers Are Responding to VPD

ByAbaidullah Shahid

The introduction of Products Duty on 1 October 2026 has created a new task for businesses across the UK supply chain. Manufacturers, importers, wholesalers and retailers have had to review how they manage products, packaging, prices and stock.

VPD applies to liquid made in or imported into the UK, whether it contains nicotine or not. The flat rate is £2.20 per 10ml. For businesses, this means understanding the liquid volume in each product and ensuring duty is handled at the correct point in the supply chain.

Reviewing prices and product ranges

One immediate response for many businesses is to review pricing. The duty amount is calculated by volume, but the final retail price is not set by the tax alone. The decision to pass on the cost is commercial, so different retailers and brands may respond in different ways.

Businesses may review individual prices, bundles, product ranges or how they communicate offers. The effect can vary by product because liquid capacity differs. A product with a higher liquid volume has more duty attached to it than a smaller-volume product, all else being equal. But costs such as manufacturing, distribution and retailer overheads also affect the final price.

Clear pricing communication matters during this period. Retailers can help customers understand that the duty is volume-based and that any retail price change reflects a range of business decisions. Avoiding vague claims and providing clear product information makes it easier for consumers to compare options.

Managing stock and packaging

Stock management has also become more important. Products made or imported for the UK market from 1 October must carry a vaping duty stamp before release. However, retailers can continue to sell eligible unstamped stock already held through 31 March 2027.

Businesses therefore need to know when a product entered the supply chain, whether it is stamped, and whether it qualifies for the transition. These details affect purchasing, warehouse processes and what can be put on sale. Retailers should maintain clear communication with suppliers to understand whether new stock meets the requirements.

The stamp system also has a timeline of its own. Transitional stamps can be affixed only until 31 December 2026. From 1 January 2027, only digital stamps can be affixed. From 1 April 2027, all products outside duty suspension must carry a valid stamp. Each deadline affects a different stage of the change.

Working with suppliers

Retailers that sell duty-paid products do not generally need the same HMRC approvals as manufacturers, importers or businesses holding duty-suspended stock. But they still need to source products responsibly and keep adequate records. Supplier communication helps retailers confirm that newly sourced goods meet the relevant requirements.

The new environment also makes accurate product data more valuable. Product pages and stock systems should identify formats, liquid volumes and compatibility information. Consistent data can help with product comparisons, purchasing decisions and customer service.

For instance, when reviewing products in a Hayati vape range, a business should ensure each listing accurately describes the specific product. The same principle applies to a particular item such as Hayati pro ultra plus pods: product information should make the format and relevant details easy to find.

Communicating with customers

Customers may have questions about whether VPD applies to nicotine-free products, why prices vary, and why some products have stamps while others do not. A concise explanation can address these concerns:

  • The duty is charged by liquid volume.
  • It applies to vaping liquid whether or not it contains nicotine.
  • Businesses decide how much of the cost, if any, to reflect in retail prices.
  • Eligible older unstamped stock may be sold until 31 March 2027.
  • Products made or imported for the UK market from 1 October need a duty stamp.

This kind of information helps distinguish the legal duty from a retailer’s pricing choices. It also helps customers understand the packaging transition without implying that every unstamped product is automatically non-compliant.

Adjusting operations over time

VPD is not a one-day change for the whole sector. The duty began on 1 October, but the stamp requirements continue through several deadlines. Businesses need to prepare for the digital-stamp stage from January 2027 and the final transition deadline in April.

Retailers may need to update product records, staff guidance, supplier checks and customer-facing explanations. A clear process can make the change easier to manage and reduce confusion when stock with different packaging is on sale at the same time.

A market adapting to new rules

The businesses best placed to handle VPD will be those that understand the rules, keep their product information accurate and communicate price changes clearly. The duty changes the cost structure for vaping liquid, while the stamp scheme adds new traceability requirements.

For consumers, this may mean different prices and packaging across the market. For businesses, it means reviewing operations and working closely with suppliers. As the transition continues, clear information will remain central to helping customers understand what has changed and why.