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| 1 | --- |
| 2 | name: excise-tax-workflow-base |
| 3 | description: > |
| 4 | Tier 1 workflow base for excise duty skills covering harmonised excise on energy products, alcohol, and tobacco (EU Directives 2003/96/EC, 92/83/EEC, 2011/64/EU) and non-harmonised excise (sugar, plastics, single-use plastic, gambling, environmental). Workflow architecture only — no country rate tables or product-specific guidance. MUST be loaded alongside a country excise content skill. Assumes a licensed excise warehouse keeper or authorised consignor / consignee operates under bond and EMCS (Excise Movement and Control System). Does NOT cover: customs duty (see customs-duties-workflow-base), VAT on excise products (see country VAT skills), excise on cannabis where legalised (specialist), or licensing process for excise warehouse. |
| 5 | version: 0.1 |
| 6 | jurisdiction: GLOBAL |
| 7 | category: foundation |
| 8 | verified_by: pending |
| 9 | --- |
| 10 | |
| 11 | # Excise Tax Workflow Base v0.1 |
| 12 | |
| 13 | ## What this file is |
| 14 | |
| 15 | Tier 1 workflow base for excise duty skills. Country content skills load on top. |
| 16 | |
| 17 | --- |
| 18 | |
| 19 | ## Section 1 — Scope and assumptions |
| 20 | |
| 21 | Excise duty is a tax on the production or sale of specific goods, typically: |
| 22 | - Energy products (motor fuel, heating fuel, gas, coal, electricity) |
| 23 | - Alcoholic beverages |
| 24 | - Tobacco products |
| 25 | - Sugar-sweetened beverages (UK, Norway, Hungary, others) |
| 26 | - Plastic / single-use plastic packaging |
| 27 | - Gambling |
| 28 | - Vehicle registration / luxury vehicle (some countries) |
| 29 | |
| 30 | This workflow base assumes: |
| 31 | - The taxpayer is a producer, importer, distributor, or retailer of excisable goods |
| 32 | - Excisable goods are stored under bond in authorised warehouses until release for consumption |
| 33 | - The country has implemented EMCS (Excise Movement and Control System) or equivalent (EU) — or the US bonded warehouse / Form 5000 series equivalent |
| 34 | |
| 35 | --- |
| 36 | |
| 37 | ## Section 2 — Lifecycle runbook |
| 38 | |
| 39 | ### Step 1 — Determine excisable status |
| 40 | |
| 41 | **[T1]** For each product: |
| 42 | - Is it listed in the country's excise legislation? |
| 43 | - What is the applicable rate / tariff classification? |
| 44 | - Are there reduced rates (e.g., red diesel, agricultural fuel)? |
| 45 | - Are there exemptions (e.g., scientific use, denatured alcohol)? |
| 46 | |
| 47 | ### Step 2 — Determine the chargeable event |
| 48 | |
| 49 | **[T1]** Excise becomes due on the **release for consumption** — typically: |
| 50 | - Departure from a tax warehouse (other than under duty-suspension arrangement) |
| 51 | - Manufacture outside a tax warehouse |
| 52 | - Importation outside a duty-suspension arrangement |
| 53 | - Holding outside a duty-suspension arrangement |
| 54 | - Irregularity during a duty-suspended movement (deemed release) |
| 55 | |
| 56 | ### Step 3 — Compute the duty |
| 57 | |
| 58 | **[T1]** Depending on product type: |
| 59 | - **Specific duty** — per litre, per kg, per pack, per stick |
| 60 | - **Ad valorem** — % of retail price (typical for tobacco) |
| 61 | - **Combined** — both (e.g., EU tobacco minimum specific + ad valorem) |
| 62 | |
| 63 | For alcohol: typically per hectolitre of pure alcohol (ethanol) for spirits; per hectolitre and degree of strength for beer/wine/intermediate products. Reduced rates for small breweries, small wine producers, low-alcohol products. |
| 64 | |
| 65 | ### Step 4 — Apply duty-suspension and movements |
| 66 | |
| 67 | **[T1] EU EMCS (Excise Movement and Control System):** |
| 68 | - Electronic Administrative Document (eAD) accompanies suspended movements |
| 69 | - Authorised Warehouse Keeper / Registered Consignor / Registered Consignee status required |
| 70 | - Closure of movement upon arrival at destination triggers chargeable event in destination MS (if released) or duty suspension continues |
| 71 | - Movement guarantee covers the duty during transit |
| 72 | |
| 73 | ### Step 5 — Pay the duty |
| 74 | |
| 75 | **[T1]** Periodic excise return — typically monthly. Payment generally within 1 month of the chargeable event. Bond / guarantee covers deferred payment. |
| 76 | |
| 77 | ### Step 6 — Track exemptions and reliefs |
| 78 | |
| 79 | **[T1] Common exemptions:** |
| 80 | - Diplomatic / consular use |
| 81 | - Visiting forces (NATO SOFA) |
| 82 | - Research / scientific use |
| 83 | - Denatured alcohol |
| 84 | - Domestic production for personal use (limited) |
| 85 | - Renewable energy / biofuels (variable) |
| 86 | - Industrial use (e.g., energy products for non-fuel use) |
| 87 | |
| 88 | --- |
| 89 | |
| 90 | ## Section 3 — EU harmonised excise framework |
| 91 | |
| 92 | ### 3.1 Energy products (Directive 2003/96/EC) |
| 93 | |
| 94 | **[T1] Minimum rates:** |
| 95 | - Unleaded petrol: EUR 359 per 1,000L |
| 96 | - Diesel (commercial use): EUR 330 per 1,000L |
| 97 | - Heating gas oil: EUR 21 per 1,000L |
| 98 | - Heavy fuel oil: EUR 15 per 1,000kg |
| 99 | - LPG (heating): EUR 0 per 1,000kg |
| 100 | - Natural gas (heating): EUR 0.15/0.30 per GJ (commercial / non-commercial) |
| 101 | - Coal and coke: EUR 0.15/0.30 per GJ |
| 102 | - Electricity: EUR 0.50/1.00 per MWh |
| 103 | |
| 104 | Member States set rates above these minima; some derogations / reduced rates approved by Council. |
| 105 | |
| 106 | ### 3.2 Alcohol (Directives 92/83/EEC and 92/84/EEC) |
| 107 | |
| 108 | **[T1] Minimum rates:** |
| 109 | - Beer: EUR 1.87 per hectolitre / degree Plato OR EUR 0.748 per hectolitre / degree of alcohol (chosen MS basis) |
| 110 | - Wine (still and sparkling): EUR 0 (minimum) — many MS set zero |
| 111 | - Intermediate products (sherry, port, fortified): EUR 45 per hectolitre |
| 112 | - Spirits: EUR 550 per hectolitre of pure alcohol |
| 113 | |
| 114 | Reduced rates available for small independent breweries (typically up to 50% reduction). |
| 115 | |
| 116 | ### 3.3 Tobacco (Directive 2011/64/EU) |
| 117 | |
| 118 | **[T1] Minimum excise duty:** |
| 119 | - **Cigarettes**: at least 60% of weighted average retail selling price (WARSP); minimum EUR 90 per 1,000 cigarettes (or 115% of weighted average retail selling price) |
| 120 | - **Fine-cut tobacco**: 48% of weighted average retail selling price; minimum EUR 60 per kg |
| 121 | - **Cigars / cigarillos**: 5% of weighted average retail selling price OR EUR 12 per 1,000 / EUR 12 per kg |
| 122 | - **Other smoking tobacco**: 20% of weighted average retail selling price OR EUR 22 per kg |
| 123 | |
| 124 | Combination of specific and ad valorem; minimum total varies. |
| 125 | |
| 126 | ### 3.4 EMCS data flow |
| 127 | |
| 128 | | Stage | Document | |
| 129 | |---|---| |
| 130 | | Dispatch | e-AD (electronic Administrative Document) with Administrative Reference Code (ARC) | |
| 131 | | In transit | ARC referenced on transport documents | |
| 132 | | Receipt at destination | Report of Receipt (RoR) by consignee | |
| 133 | | Closure | EMCS auto-closes upon successful RoR | |
| 134 | | Discrepancy / shortage | Excise becomes chargeable in destination MS | |
| 135 | |
| 136 | --- |
| 137 | |
| 138 | ## Section 4 — Non-EU regimes (selected) |
| 139 | |
| 140 | ### 4.1 United States |
| 141 | |
| 142 | - Excise tax under IRC Subtitle E (Alcohol, Tobacco, and Other Excise Taxes) |
| 143 | - TTB (Alcohol and Tobacco Tax and Trade Bureau) administers |
| 144 | - Federal alcohol per-proof-gallon and per-barrel rates |
| 145 | - Federal tobacco per-stick rates |
| 146 | - Federal fuel excise (Highway Trust Fund) |
| 147 | - Plus state excise (variable by state) |
| 148 | |
| 149 | ### 4.2 United Kingdom |
| 150 | |
| 151 | - Post-Brexit: outside EU EMCS but mirrors substantive rules |
| 152 | - Excise Notice 197 (alcohol production), 196 (tobacco) |
| 153 | - New Spirit Drink, Wine and Beer Duty rates reformed February 2023 (alcohol-by-volume based; draught relief) |
| 154 | - ETDS (Excise Movement and Control System UK) |
| 155 | |
| 156 | ### 4.3 Other |
| 157 | |
| 158 | - **Australia** — excise on petroleum, alcohol, tobacco under Excise Act 1901 |
| 159 | - **Canada** — federal + provincial excise; cannabis excise under Cannabis Act |
| 160 | - **Japan** — alcohol, tobacco, oil under Alcohol Tax Law et al |
| 161 | - **India** — central excise replaced largely by GST 2017 except petroleum and tobacco |
| 162 | - **Brazil** — IPI (Federal Industrialised Products Tax) applies functions analogous to excise |
| 163 | |
| 164 | --- |
| 165 | |
| 166 | ## Section 5 — Non-traditional excise |
| 167 | |
| 168 | ### 5.1 Sugar-sweetened beverages |
| 169 | |
| 170 | | Country | Status | |
| 171 | |---|---| |
| 172 | | UK | Soft Drinks Industry Levy from April 2018 — 18p/L (5g-8g sugar/100mL) or 24p/L (>8g sugar/100mL) | |
| 173 | | Norway | Sukkeravgift; abolished but discussed for reintroduction | |
| 174 | | Hungary, France, Spain (Catalonia), Mexico, Philippines, Ireland | Various rates / structures | |
| 175 | |
| 176 | ### 5.2 Plastic packaging tax |
| 177 | |
| 178 | | Country | Status | |
| 179 | |---|---| |
| 180 | | UK | Plastic Packaging Tax from April 2022 — GBP 217.85 per tonne (2024 rate) of plastic packaging with < 30% recycled plastic | |
| 181 | | Spain | Impuesto Especial sobre los Envases de Plástico no Reutilizables from January 2023 — EUR 0.45 per kg non-reusable plastic | |
| 182 | | Italy | Plastic tax deferred multiple times; expected 2026 | |
| 183 | | Germany | One-Way Plastic Fund Act effective 2025 | |
| 184 | |
| 185 | ### 5.3 EU Single-Use Plastic Directive |
| 186 | |
| 187 | Directive (EU) 2019/904 — bans certain single-use plastic products and mandates extended producer responsibility for others. National implementations vary. |
| 188 | |
| 189 | --- |
| 190 | |
| 191 | ## Section 6 — Reviewer brief |
| 192 | |
| 193 | ``` |
| 194 | 1. Product register |
| 195 | - Tariff classification per product line |
| 196 | - Duty rates (specific + ad valorem) |
| 197 | - Exemptions claimed |
| 198 | |
| 199 | 2. Movements log |
| 200 | - Inbound (production / import / receipt under suspension) |
| 201 | - Outbound (release for consumption / dispatch under suspension) |
| 202 | - In-warehouse stock movements |
| 203 | - Losses (allowable vs disallowable) |
| 204 | |
| 205 | 3. Duty payable schedule |
| 206 | - By product / period |
| 207 | - By movement (EMCS-tracked) |
| 208 | - Reduced-rate / exemption support |
| 209 | |
| 210 | 4. EMCS / equivalent compliance |
| 211 | - Active eADs |
| 212 | - Closed eADs |
| 213 | - Discrepancies / irregularities |
| 214 | |
| 215 | 5. Bond / guarantee status |
| 216 | - Movement guarantee |
| 217 | - Warehouse guarantee |
| 218 | - Deferment account |
| 219 | |
| 220 | 6. Reviewer questions — [T2]/[T3] items |
| 221 | ``` |
| 222 | |
| 223 | --- |
| 224 | |
| 225 | ## Section 7 — Self-checks (12) |
| 226 | |
| 227 | 1. [ ] Product correctly classified within the excise framework |
| 228 | 2. [ ] Duty rate current and bracket / strength / volume correctly applied |
| 229 | 3. [ ] Chargeable event identified (release for consumption / equivalent) |
| 230 | 4. [ ] Duty-suspension status documented per movement |
| 231 | 5. [ ] EMCS / equivalent eADs aligned with physical movements |
| 232 | 6. [ ] Exemption / reduced rate claims supported by evidence |
| 233 | 7. [ ] Small producer reliefs verified against turnover / production limits |
| 234 | 8. [ ] Stock reconciliation completed (opening + production + receipts − releases = closing) |
| 235 | 9. [ ] Losses within allowable tolerance |
| 236 | 10. [ ] Periodic return prepared with payment within deadline |
| 237 | 11. [ ] Bond / guarantee value adequate for risk |
| 238 | 12. [ ] Output flags every [T2]/[T3] item for reviewer judgement |
| 239 | |
| 240 | --- |
| 241 | |
| 242 | ## Section 8 — Refusal catalogue |
| 243 | |
| 244 | | Refusal | Trigger | |
| 245 | |---|---| |
| 246 | | R-EXC-1 | Production / movement of excisable goods without authorised warehouse keeper status | |
| 247 | | R-EXC-2 | EMCS unavailability for required movement | |
| 248 | | R-EXC-3 | Suspected fraud / illicit movement | |
| 249 | | R-EXC-4 | Loss exceeding allowable tolerance | |
| 250 | | R-EXC-5 | Tobacco / alcohol traceability requirements not met (Tobacco Products Directive 2014/40/EU traceability since 2019) | |
| 251 | | R-EXC-6 | Cross-border movement to country with restrictive measures | |
| 252 | |
| 253 | --- |
| 254 | |
| 255 | ## Section 9 — Slot contract for country excise skills |
| 256 | |
| 257 | ``` |
| 258 | [FRAMEWORK] |
| 259 | - Excise legislation citations |
| 260 | - Regulator name |
| 261 | - Filing portal |
| 262 | |
| 263 | [PRODUCT TARIFF] |
| 264 | - Energy products rates |
| 265 | - Alcohol rates by category |
| 266 | - Tobacco rates by category |
| 267 | - Non-traditional excise (sugar, plastic, gambling) if applicable |
| 268 | |
| 269 | [REDUCED RATES] |
| 270 | - Small producer reliefs (brewery, winery, distillery) |
| 271 | - Industrial use exemptions |
| 272 | - Renewable / biofuel reductions |
| 273 | |
| 274 | [EMCS / EQUIVALENT] |
| 275 | - System name |
| 276 | - Authorised participant categories |
| 277 | - Movement guarantee |
| 278 | |
| 279 | [RETURNS] |
| 280 | - Filing frequency |
| 281 | - Filing portal |
| 282 | - Payment terms |
| 283 | |
| 284 | [CROSS-REFERENCES] |
| 285 | - Customs duty workflow (this skill) |
| 286 | - VAT on excise products (country VAT skill) |
| 287 | - CBAM (EU energy product imports — this skill) |
| 288 | ``` |
| 289 | |
| 290 | --- |
| 291 | |
| 292 | ## Section 10 — Disclaimer |
| 293 | |
| 294 | This workflow base produces working papers for review by licensed excise practitioners. Excise duty involves criminal as well as civil penalties for misstatement. Every output must be reviewed and signed off by a licensed practitioner before lodgement. |
| 295 | |
| 296 | The most up-to-date, verified version of this workflow base is maintained at [openaccountants.com](https://openaccountants.com). |
| 297 |
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About
Tier 1 workflow base for excise duty skills covering harmonised excise on energy products, alcohol, and tobacco (EU Directives 2003/96/EC, 92/83/EEC, 2011/64/EU) and non-harmonised excise (sugar, plastics, single-use plastic, gambling, environmental). Workflow architecture only — no country rate tables or product-specific guidance. MUST be loaded alongside a country excise content skill. Assumes a licensed excise warehouse keeper or authorised consignor / consignee operates under bond and EMCS (Excise Movement and Control System). Does NOT cover: customs duty (see customs-duties-workflow-base), VAT on excise products (see country VAT skills), excise on cannabis where legalised (specialist), or licensing process for excise warehouse.
GLOBALty-2025
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