The procedure for collecting excise duties in the European Union has its own characteristics and rules. To successfully do business in the EU countries, you need to thoroughly know the tax policy of Europe, as well as all the intricacies of excise taxation. From this guide, you will learn what excisable goods are, which groups of goods are subject to excise duties in the European Union, and the features of trading and paying excise duties.

Excise goods: what are they?

Excise goods are certain categories of goods that are subject to excise tax. This includes trade within countries, as well as imported goods. An excise tax is paid by an entrepreneur or organization that sells or produces excisable goods.

Excise duties are one of the types of indirect taxes, which are subject only to specific groups of goods. This includes products that harm human health or the environment in some way. The reason for the tax is to reduce the number of purchases of goods and their use by increasing the cost.

Which goods are subject to excise duty in the EU?

As mentioned above, the objects of taxation include goods that are harmful to humans and the environment (exhaust emissions, waste, etc.). Separately, the following groups can be distinguished, payable:

• Alcohol;
• Coffee and tobacco products;
• Electric energy and energy products;
• Oil and fuel.

The list of excise goods includes all products that were created in EU countries or arrived in Europe through import from other countries.

Excise goods in the EU

Characteristics of trade in products subject to excise duty

If you are planning to trade in products subject to excise duty, you should bear in mind that payment of excise duty will be made on the basis of the standards established by the EU country where the sale is to take place. This applies to both physical and distance commerce. The minimum tax rates are standard, each EU member being free to regulate the law, which increases the cost.

Each seller of excise goods must have a licence and their own excise number in the SEED database. This is a register of vendors, which is kept separately by each EU country to register and define taxpayers. An excise registration number is an identification number assigned to an entrepreneur or private organisation.

When and who pays excise duty

There is a big difference between when excise tax is imposed and when it is paid. Most of these goods are subject to excise duty as soon as they arrive in Europe, but the duty does not always have to be paid immediately. In most cases, excise tax is paid when the goods are purchased.

Unforeseen circumstances – emergencies and the like – are also taken into account. If for such a reason goods are lost or destroyed, customs and excise duties are not paid.

Several people can be excise payers – it all depends on the end user. It may be a company or a private entrepreneur responsible for the production, storage and movement of products. The payer may also be the consignor of the goods, the consignee, the transport company, or even a third-party guarantor.

On this page, you will find a complete table of products currently subject to excise duty. If you have any questions or need help paying excise duty, customs duty, VAT and other taxes, simply contact the Lovat manager for advice and service.