Indirect tax news from the past week
27 April 2026
Vaping products duty – HMRC manual
Vaping products duty (VPD) will come into effect on 1 October 2026, at the rate of £2.20 per 10 ml of vaping liquid. At the same time, a vaping duty stamps (VDS) scheme will be introduced to mandate stamping of vaping products manufactured in, or imported into, the UK, extending to all vaping products made available for sale in the UK from 1 April 2027. Registration for VPD and the VDS scheme opened on 1 April 2026. HMRC have now published their internal manual on Vaping Products Duty and Vaping Duty Stamps guidance, setting out the relevant legislation and HMRC policy on the law and its application. (Contact: Donna Hemphill)
Online trade tariff – customised notification of tariff changes
The Chartered Institute of Taxation (CIOT) has reported the launch of a new feature on the online trade tariff, which allows businesses to receive customised notifications of changes to the UK trade tariff specific to their business. Businesses can create watch lists to receive updates based on commodity codes or tariff chapters. Users are also invited to take part in research and provide feedback on new features. (Contact: Sam Kiely)
Northern Ireland: repayment of customs duty – SI
The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2026, with accompanying tax information and impact note, have been made to amend the rules for UK businesses claiming repayment of customs duty when bringing goods into Northern Ireland. The regulations relate to the customs duty waiver scheme (CDWS) and the Northern Ireland duty reimbursement scheme (DRS). The regulations’ stated objective is to improve the accessibility and ease of use of the schemes, and to ensure that they are effective in reducing the duty burden for businesses bringing goods into Northern Ireland. The schemes provide for the repayment of duty paid on goods ‘at risk’ of entering the EU. The CDWS relates to repayment that would not breach de minimis State aid limits. The DRS provides for repayment where ‘at risk’ goods did not subsequently move into the EU. The regulations will allow businesses to switch relief granted under the CDWS to relief under the DRS, subject to certain conditions, meaning that the business will no longer be treated as having received State aid. The regulations also allow for DRS claims to be made for goods held in a common stock of ‘interchangeable goods’, provided certain criteria are met, allowing for circumstances in which individual goods cannot be identified within a mixed stock. The regulations will come into force on 25 May 2026, in accordance with the Customs (Northern Ireland) (EU Exit) (Amendment) (No. 2) Regulations 2026. (Contact: Jeffrie Mann)
Evaluation of alcohol duty reforms
HMRC and HM Treasury are evaluating the impact of the alcohol duty reforms that were introduced on 1 August 2023. The reforms involved a move to a strength-based duty system, the introduction of draught relief and small producer relief, and the simplification and digitalisation of administrative processes. The evaluation is to consider the success of the reforms in meeting the objectives of: greater consumer choice, reduced alcohol-related harm, support for business via the reliefs, and reduced administrative burden for users. The evaluation states that it is a backward-looking assessment of the reform against the intended objectives, and does not include future potential reforms regarding the system or rates, decisions on which will continue to be made as part of the Budget process. The evaluation will include data from HMRC and other government departments, qualitative research, and evidence from stakeholders, who are invited to contribute. A report will be published following the collection and review of the evidence. (Contact: David Wilson)
This week’s CJEU VAT case calendar
On 30 April, there will be a judgment in Nekilnojamojo turto valdymas on the application of the Lithuanian rules relating to late payment interest.