HMRC sets destruction rules for vaping duty stamps and products

Traders holding unused vaping duty stamps must agree the destruction with HMRC before destroying themGOV. The trader notifies HMRC of the method of destruction and the time, date and location, by email to vapingenquiries@hmrc.gov.uk or in writing to the Excise Processing Team, BX9 1GL. Deliberate destruction without that prior agreement is not permitted, save for stamps destroyed during equipment testing under the testing exemptionGOV.

A stamp counts as destroyed only where it can no longer be affixed to retail packaging, or where both the barcode and the human-readable code are no longer readableGOV. If either code remains legible, or the stamp can still be affixed, it is not destroyed for compliance purposesGOV.

Damaged stamps follow a stricter track. Stamps that arrive damaged from the approved stamp supplier may either be returned or destroyed, at the trader's choiceGOV, but the supplier must be told as soon as practicably possible with photographic evidence of the damageGOV. Stamps damaged while in the trader's possession must be destroyedGOV: the trader notifies the approved supplierGOV, keeps photographs of the damage where possible for 12 months, and keeps destruction records for 6 years. In either case destruction must begin within 1 calendar month of the damage being identifiedGOV, and where destruction takes place HMRC must be notifiedGOV.

The trader does not need to inform HMRC of any stamp destroyed as part of equipment testing providing the total volume of stamps used for testing purposes does not exceed 5,000 stamps or 1% of the operator's limit, whichever is lower, any stamps which are unsuccessfully applied are destroyed, and appropriate records are maintained. If any of those conditions fails, the standard notification appliesGOV.

Stamped vaping products bound for export, for loading as stores on a ship, aircraft or train, for use in an export shop or diplomatic mission, for supply to visiting armed forces, or for consignment to a work point on the UK Continental Shelf may be exported, loaded or used only on condition that the duty stamp is destroyedGOV.

The records that should be kept are details of the stamps, the exact quantity, the reason for destruction, the date and time of destruction, the method of destruction, and copies of any certificates of destruction if the action is carried out by a third party. Stamps that cannot be accounted for are treated as lostGOV, which can attract penaltiesGOV.

For vaping products themselves, HMRC officers must not approve, endorse or direct the method of destruction; that choice stays with the traderGOV, and liquid poured into the sewerage system needs the water authority's guidance. Duty-paid products require no notification unless the trader claims drawback of the duty paidGOV, in which case the Excise Notice 207 drawback procedure applies with a full audit trailGOV. Duty-suspended products require notification under section 14.8 of Excise Notice 197 whatever the trader's approval typeGOV, with evidence from stock, warehouse, transport and destruction records, and quantities recorded in the W1 return for the accounting period of destruction. Where destruction is not evidenced, the duty remains dueGOV.

The legal basis is the Vaping Products (Production, Duty Stamps and Commencement) Regulations 2026, the Revenue Traders (Accounts and Records) Regulations 1992, Excise Notice 197 and Excise Notice 207: Excise Duty Drawback.