All products subject to excise duties in the EU are also subject to ‘common provisions’ which establish rules for excisable products. These common provisions are laid out in the Council Directive on general arrangements for excise duty.
Provisions
The Directive prescribes rules for:
- The categories of products that EU countries must apply excise duties to
- The chargeability of excise goods
- The principles on where excise duty revenue accrues
- The production, storage and movement of excise products
- The types of authorised excise operators
- The commercial movement of duty-paid excise goods
- The alignment between excise and customs procedures
Tax warehouses
Tax warehouses are facilities authorised to produce, receive, store and dispatch excise goods in duty suspension. Tax warehouses must be authorised by national authorities, in line with specified EU principles.
These principles are set out in Recommendation 2000/789/EC. The authorisations may be consulted on the SEED database. For the operation of SEED please consult Commission Implementing Regulation (EU) No 612/2013.
Once these goods are released for consumption, excise duties must be paid.
In general, excise duty is paid in the EU country of consumption. Excise goods can be transported from one EU country to another under duty-suspension until they reach their final destination.
If commercial consignments have already been released for consumption (and therefore the duty is paid) in one EU country and are then transported to another EU country as a final destination, a system of reimbursement is in place to avoid double taxation.
For those who buy excise goods for their own use, the tax is paid in the EU country of origin, i.e. where they buy the goods. Rules exist to determine if the products bought are deemed for own use.
Visit the page Alcohol, tobacco and excise duties in YourEurope for more info
For sales to a private person in another EU country, the principle of taxation in the Member State of destination applies. Thus, products which have already been released for consumption and are transported to another EU country will be subject to excise duty in the EU country of destination.
The person liable to pay the excise duties is the vendor. To avoid double taxation, the Directive provides for a system of reimbursement of the excise duty paid in the first EU country, subject to conditions determined by that EU country.
- For consignees: If the vendor does not comply with the requirements under Article 44(4)(a) of Directive 2020/262, you may become the person liable under Article 44(3). If you agree to arrange the transport separately, you may become liable for the excise duty in 'your’ EU country.
- For consignors: EU countries may allow the appointment of a tax representative in the EU country of destination, as per Article 44(3) of Directive 2020/262. Check the national excise procedures before dispatching goods to private persons.
Movement of excise goods
An authorised warehousekeeper (or a registered consignor) can move excise products – under duty suspension – from a tax warehouse (or place of importation into the EU) to:
- Another tax warehouse
- A (temporary) registered consignee
- A place of export from the EU (see Article 16(1)(a)(iii) and (v) of Directive 2020/262)
- An exempt consignee (see Article 16(1)(a)(iv) of Directive 2020/262)
The movement of excise goods released for consumption in the EU country of dispatch – under duty paid – must take place from a certified consignor to a certified consignee.
All excise goods transported between EU countries must be accompanied by required documents:
- Electronic Administrative Document (eAD) for goods which are under duty-suspension
- Electronic Simplified Administrative Document (eSAD) for goods under duty paid
The Directive lays down which operators are required to provide a guarantee for the movement of excise goods.
The Excise Movements and Control System (EMCS) is the highly developed computerised system for tracing the commercial movement of excise goods travelling within the EU.
Legal texts
- Council Directive (EU) 2020/262 of 19 December 2019 laying down the general arrangements for excise duty
- Council Regulation (EU) No 389/2012 of 2 May 2012 on administrative cooperation in the field of excise duties and repealing Regulation (EC) No 2073/2004
- Commission Delegated Regulation (EU) 2022/1636 of 5 July 2022 supplementing Council Directive (EU) 2020/262 by establishing the structure and content of the documents exchanged in the context of movement of excise goods, and establishing a threshold for the losses due to the nature of the goods
- Commission Implementing Regulation (EU) 2022/1637 of 5 July 2022 laying down the rules for the application of Council Directive (EU) 2020/262 as regards the use of documents in the context of movement of excise goods under a duty suspension arrangement and of movement of excise goods after release for consumption, and establishing the form to be used for the exemption certificate
- Commission Implementing Regulation (EU) 612/2013 on the operation of the register of economic operators and tax warehouses, related statistics and reporting pursuant to Council Regulation (EU) No 389/2012 on administrative cooperation in the field of excise duties
- Commission Implementing Regulation (EU) 2016/323 of 24 February 2016 laying down detailed rules on cooperation and exchange of information between Member States regarding excise goods pursuant to Council Regulation (EU) No 389/2012
- Commission Recommendation 2000/789/EC of 29 November 2000 setting out guidelines for the authorisation of warehousekeepers under Council Directive 92/12/EEC in relation to products subject to excise duty (notified under document number C(2000) 3355)
Related links
- Excise duties on Alcohol
- Excise duties on Tobacco
- Excise duties on Energy
- Study assessing articles 32 and 36 of Council Directive 2008/118/EC concerning the general arrangements for excise duty – Excise Duty Final report & Excise Duty Executive summary