Excise taxes are indirect taxes on the sale or use of specific products such as alcohol, tobacco, energy products and electricity. The revenue from excise taxes goes entirely to the country to which they are paid.
Common EU rules exist to make sure that excise taxes are applied in the same way and to the same products everywhere in the Union. This helps prevent trade distortions in the Single Market, ensures fair competition between businesses, and reduces administrative burdens for companies.
Common provisions
EU law sets out common provisions which apply to all products subject to excise duties. These provisions include the framework for the Excise Monitoring and Control System (EMCS).
Alcohol
The EU sets harmonised minimum rates of excise duties for alcohol and alcoholic beverages, as well as specific provisions for locally produced products and alcohol not intended for human consumption.
Tobacco
EU legislation sets categories of manufactured tobacco products, principles of taxation, and minimum rates and structures to be applied. EU countries are free to apply excise duty rates above this minimum, according to their own national needs.
Energy
The Energy Taxation Directive establishes the minimum excise duty rates and structure that EU countries must apply to energy products for all energy products used for heating, transport and electricity. It also includes specific provisions for aircraft fuel and fiscal marking of gas oils and kerosene.
Revision of the Energy Taxation Directive (proposal)
EMCS
The Excise Movement and Control System (EMCS) is a computerised system for recording and monitoring the movement of excise goods in the EU.
More than 190,000 economic operators currently use the system. It is a key facilitation instrument for EU economic operators trading excise goods and a crucial tool for information exchange and cooperation between EU countries.
Excise Movement and Control System (EMCS)