HMRC updates vape duty guidance on destroyed products and stamps

HMRC updated its Vaping Products Duty and Vaping Duty Stamps internal manual on 12 October, adding detailed guidance on destructions. The update is aimed at HMRC staff rather than consumers, but it matters because it shows how the new duty system is being administered after its 1 October start.

The updated manual says officers should not approve or direct how traders destroy vaping products. Where a trader proposes putting vaping liquid into the sewerage system, HMRC staff are told to advise the trader to seek guidance from the relevant water authority, and not to suggest HMRC has approved that method.

For duty-suspended vaping products, HMRC says officers should expect a clear audit trail showing the products existed, stayed under duty suspension and were later destroyed. Evidence may include stock records, warehouse records, waste documentation, invoices, certificates of destruction and transport records. HMRC says higher scrutiny may be appropriate where large quantities are involved, records are incomplete or there are indicators of diversion or fraud.

The duty-paid destruction guidance is narrower. HMRC says traders do not need to notify it before destroying duty-paid vaping products unless they intend to claim drawback of duty already paid. Where drawback is claimed, the manual says the trader should retain evidence showing that the products have been permanently destroyed and are no longer available for sale or consumption.

Separate stamp guidance now sets out notification, record-keeping and damage rules for duty stamps. The underlying regulations require duty stamps for liable products produced or imported on or after 1 October 2026 at or before the excise duty point, while earlier products have separate transitional rules.

For adult vapers, this is not a change to how a device should be used. Its practical significance is mainly in the supply chain: compliant businesses will need records that match product movement, stamp use and destruction decisions, while enforcement bodies gain another route to challenge unexplained losses or doubtful destruction claims.