In the European Union, excise duties are a type of indirect tax imposed on the sale or consumption of specified products such as alcohol, tobacco and energy. The excise duty revenue is totally directed to the country to which it is paid.
The excise duty rates depend exclusively on the type of product, e.g., sparkling wine, cider and their alcohol content. Duties on cigarettes depend on their retail price plus a flat rate charged per thousand cigarettes. Heating fuel is based on quantity and is charged either per liter or per kilo.
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EU country members have agreed on a set of common rules to ensure that excise charges are applied consistently and uniformly across the Union. For instance, by imposing a minimum rate of excise duty.
This aids in the prevention of trade distortions in the Single Market maintains fair competition among firms and decreases administrative burdens on businesses.
Examples of Excise Goods
- Beer
- Wine (still and sparkling)
- Intermediate Products (e.g. port, sherry)
- Spirits
- Fine-cut smoking tobacco
- Cigars and Cigarillos
- Other smoking tobaccos
- Fuel
- Leaded petrol
- Unleaded petrol
- Gas Oil
- Kerosene
- LPG
- Natural Gas
Excise duties need to be paid in advance or when goods arrive at customs, depending on the incoterm agreed. Rules apply regardless of whether excise goods come from outside or within the EU. If you are interested in learning more about excise goods and their rates, My Duty Collect has developed a comprehensive solution that precisely classifies and calculates duty rates for excisable goods.
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