Excise Duties on Alcohol

Excise duties on alcohol are regulated through two main pieces of EU legislation: 

1. Directive 92/83/EEC on excise duties sets out: 

• the structures of excise duties on alcohol and alcoholic beverages 
• the categories of alcohol and alcoholic beverages subject to excise duty 
• the basis on which the excise duty is calculated 

It also includes special provisions such as reduced rates for small breweries and small distilleries, certain products and geographical regions. 

On 29 July 2020, the Council adopted Directive 2020/1151 amending Directive 92/83/EEC on the harmonisation of the structures of excise duties on alcohol and alcoholic beverages. This Directive has been applicable since 1 January 2022. 

2. Directive 92/84/EEC sets out minimum rates that must applied to each category of alcoholic beverage as well as reduced rates for certain Greek, Italian and Portuguese regions. EU countries are free to apply excise duty rates above these minima, according to their own national needs. 

This directive is under evaluation. The evaluation will examine if excise duty rates on alcohol and alcoholic beverages have contributed to the proper functioning of the EU single market.

The certification of independent small producers of alcoholic beverages is covered under Commission Implementing Regulation 2021/2266. 

The following documents are to provide practical and informal guidance and are not legally binding. 

• Explanatory Notes on the total annual production threshold applicable to independent small producers of alcoholic beverages  issued by the Commission’s Directorate General for Taxation and Customs Union. 
• Explanatory Notes on the qualitative criteria applicable to independent small producers of alcoholic beverages issued by the Commission’s Directorate General for Taxation and Customs Union. 

Council Decision (EU) 2020/1791 authorises France until 31 December 2027 to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion. 

Council Decision (EU) 2020/1790 authorises Portugal until 31 December 2027 to apply a reduced rate of excise duty on certain alcoholic products produced in the autonomous regions of Madeira and of the Azores.

When alcohol has been denatured according to the EU rules, it can be exempted from excise duties. This includes, for example, alcohol used for industrial purposes, to produce foodstuffs and medicines, or to manufacture cosmetics, biofuels, paints, anti-freeze and cleaning products. 

More on denatured alcohol 

• Council Directive 2020/1151 amending Directive 92/83/EEC on the harmonisation of the structures of excise duties on alcohol and alcoholic beverages 
• Council Directive 92/83/EEC on the harmonisation of the structures of excise duties on alcohol and alcoholic beverages 
• Council Directive 92/84/EEC on the approximation of the rates of excise duty on alcohol and alcoholic beverages 
• Commission Implementing Regulation 2021/2266 as regards the certification and self-certification of independent small producers of alcoholic beverages for excise duty purposes 
• Council Decision (EU) 2020/1791 authorising France to apply a reduced rate of certain indirect taxes on ‘traditional’ rum produced in Guadeloupe, French Guiana, Martinique and Réunion 
• Council Decision (EU) 2020/1790 authorising Portugal to apply a reduced rate of excise duty on certain alcoholic products produced in the autonomous regions of Madeira and of the Azores 

• Full list of excise duty receipts of Member States (November 2023) 
• Archived excise duty tables