Excise duties

In Estonia, excise duties are imposed on alcohol, tobacco products, fuel and electricity, and packaging. Excise duties are mainly regulated by the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act (ATKEAS) and the Packaging Excise Duty Act.

Alcohol excise duty is imposed on alcohol manufactured in Estonia or imported into Estonia from another Member State of the European Union (EU) for free circulation. Alcohol means beer, wine, fermented beverages, intermediate products and other alcohol (strong alcohol).

Tobacco excise duty is imposed on tobacco products manufactured in Estonia or imported into Estonia from another Member State of the European Union (EU) for free circulation. Tobacco products, upon which excise duty is imposed, are cigars, cigarillos, cigarettes and smoking tobacco.

Fuel and electricity excise duty is imposed on different kinds of liquid fuel, solid fuel, natural gas and electricity. In certain fields it is permitted to use fuel marked with a fiscal marker with a lower excise duty than usual.

In some cases it is required to obtain different permissions and make registration entries to handle excise goods. It is permitted to transport excise goods both in Estonia and between Member States of the EU, receive, store and produce them under an excise suspension arrangement to a person holding the excise warehouse activity licence. Within the trade between the Member States of the EU, for transportation under an excise suspension arrangement from Estonia, it is possible to use the activity licence of a registered consignor, and for receiving under an excise suspension arrangement in Estonia, it is possible to use an activity licence of a registered consignee.

Both the consignor of the excise goods sending the goods to another Member State of the EU and the consignee of excise goods from another Member State of the EU undertake to notify the Tax and Customs Board about their activities in advance. In certain cases, it is permitted to consume excise goods without excise duty, and the excise suspension permit should be applied for in advance. As a rule, it is required to be registered at the Register of Economic Activities for handling the fuel released for consumption (i.e. excise duty is imposed on it), and when selling such fuel, it is also required to provide a security deposit.

As a rule, tax liability arises when importing excise goods outside an excise suspension arrangement, releasing them for consumption from an excise warehouse, and delivering excise goods subject to excise duty in another Member State of the EU to Estonia. Excise duty is usually paid either by the importer, excise warehouse keeper, or the deliverer of excise goods from another Member State of the EU to Estonia. As a rule, excise duty should be paid and declared by the 15th day of the month following the month when tax liability arose.

Excise duty on packaging shall be imposed on packaging of goods placed on the market in Estonia, acquired in and imported from another Member State of the European Union in the event of the sale, exchange, transfer without charge or use for self-consumption of the packaging in Estonia. Packaging means products made of any materials to be used for the housing, protection, handling, delivery and presentation of goods during the life cycle of such goods: from raw materials to processed goods and from the producer to the consumer. Non-returnable packaging to be used for the same purposes shall also be considered to constitute packaging.

Additional information is available on the website of the Tax and Customs Board in the excise duties section and on topic-based subpages: excise on alcohol, excise on tobacco, excise on fuel, excise on electricity and excise on packaging. The information about handling fuel released for consumption (i.e. subject to excise duty) is available in the fuel handling section of the website of the Tax and Customs Board.

Last amended: 30-01-2017 12:06 | Compiled by: Tax and Customs Board