HM Revenue and Customs Awards Contract for E-Cigarette Tax Stamp System
The UK’s HM Revenue and Customs (HMRC) has awarded a contract to Swiss technology companies SICPA and Cartor Security Printers to implement a vape tax stamp and digital traceability system, with a phased rollout beginning in April 2026.
Key Highlights
- HMRC awards contract for vape tax stamp and traceability system.
- Transitional vape tax stamps to launch in April 2026.
- A complete digital traceability system to go live in October 2026.
- The project aims to strengthen tax collection and combat illicit trade.
- The contract runs for five years, with a one-year extension option.
Major Contract Awarded After Procurement Process
According to a February 24, 2026, report by EQS Newswire, SICPA, partnering with Cartor Security Printers, secured the contract to deliver the UK vape tax stamp project. The initiative combines physical security stamps with a comprehensive digital system designed to track products across the supply chain.
The contract was finalized after a multi-phase procurement process launched in July 2025, with the winning bid selected following technical and financial evaluations. The initial agreement covers five years, with a one-year extension option.
Unified Invoicing and Supply Chain Tracking
The project aims to create a standardized invoicing framework for vape products in the UK while deploying digital traceability covering manufacturing, distribution, and retail. The system is intended to provide authorities with end-to-end visibility over product movement and compliance.
Phased Rollout Timeline
Implementation will occur in stages. Beginning in April 2026, transitional tax stamps will be introduced. In October 2026, an upgraded system featuring a full digital traceability platform is scheduled to go live.
Division of Responsibilities Between Contractors
Cartor Security Printers will handle stamp production and anti-counterfeiting features, incorporating bank-grade security elements. SICPA will supply additional physical and digital security technologies, manage coding systems, and operate the traceability software platform.
SICPA’s responsibilities also include registering supply chain participants, managing stamp ordering and payment processes, and overseeing data collection and compliance monitoring.
Enforcement Tools and Consumer Verification
The system will incorporate auditing equipment and consumer verification tools to help authorities detect irregular transaction patterns and potential fraud. These capabilities are intended to strengthen enforcement and oversight.
Strengthening Tax Collection and Market Compliance
HMRC stated that the initiative will support excise tax collection on vapes, improve regulatory compliance, and enhance the government’s ability to combat illicit trade in vaping products.
Step Toward a Stronger Regulatory Framework
The project represents a major advancement in the UK’s approach to vape taxation and supply chain monitoring, underscoring the government’s ongoing commitment to tighter compliance controls and more effective tax administration in the vaping market.
