Directive 2008/118/EC – general arrangements for excise duty
It introduces harmonised arrangements for products subject to excise duty in order to guarantee their free circulation and therefore the proper functioning of the European Union (EU)’s single market.
This directive establishes the general arrangements for excise duties that apply to:
These products are subject to excise duties when:
As long as they do not give rise to cross-border formalities within the EU, EU Member States may also apply taxes on:
This directive applies to the territory of the EU, with some exceptions such as:
Chargeability, reimbursement and exemption
Excise duties are chargeable at the time of release for consumption in the Member State concerned. The person liable to pay the excise duty is generally the authorised warehouse keeper or the registered consignee.
Member States:
Excise goods are exempted from payment of excise duty where they are intended to be used:
Member States may also exempt from payment of excise duty, excise goods supplied by tax-free shops that are carried in the personal luggage of travellers to a non-EU country by flight or sea crossing.
Production, processing and holding
Each Member State sets rules concerning the production, processing and holding of excise goods defined by the directive. Where the excise duty has not yet been paid, the production, processing and holding of excise goods must take place in a tax warehouse.
Movement of excise goods under suspension of excise duty
When excise goods are under a ‘duty suspension arrangement’, the excise duty is being suspended from the production, processing, holding or movement of excise goods.
Excise goods may be moved, under a duty suspension arrangement within the EU, from a tax warehouse or from a place of importation to:
A movement of excise goods must in principle take place under cover of an electronic administrative document as specified in Regulation (EC) No 684/2009, most recently amended by Implementing Regulation (EU) 2021/2265.
The competent authorities of the Member State of dispatch may ask the authorised warehouse keeper or registered consignor for a guarantee that covers the risks inherent to the movement under suspension of excise duty. In principle, the guarantee can be provided by another party.
The guarantee is valid throughout the EU while the detailed rules are laid down by the Member States.
Movements and taxation of excise goods after release for consumption
When excise goods are released for consumption, it means that the excise goods:
Excise duties on goods acquired by a private individual for their own personal use and transported from one Member State to another by them may be charged only in the Member State in which the goods were acquired. To determine whether the excise goods are intended for a private individual, Member States take account of:
Where excise goods intended for consumption in a Member State are held for commercial purposes in another Member State, the goods are subject to the excise duties of the latter Member State. Excise duties paid in the first Member State may be reimbursed.
In the case of distance selling from one Member State to another, the vendor or his agent must pay excise duty in the Member State of destination.
Member States may require that excise goods carry tax markings or national identification marks.
Repeal
Directive 2008/118/EC is repealed and replaced by Directive (EU) 2020/262 (see summary) from 13 February 2023.
It has applied since 15 January 2009 and had to become law in the Member States by 2010.
For further information, see:
Council Directive 2008/118/EC of 16 December 2008 concerning the general arrangements for excise duty and repealing Directive 92/12/EEC (OJ L 9, 14.1.2009, pp. 12–30).
Successive amendments and changes to Directive 2008/118/EC have been incorporated in the original text. This consolidated version is of documentary value only.
Commission Regulation (EC) No 684/2009 of 24 July 2009 implementing Council Directive 2008/118/EC as regards the computerised procedures for the movement of excise goods under suspension of excise duty (OJ L 197, 29.7.2009, pp. 24–64).
See consolidated version.
last update 08.11.2021