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Excise law

Excises are consumption taxes on specific goods, for example on mineral oil, tabacco, alcohol or wine. They differ from value added tax (VAT) because of, more in particular, their taxable object, the taxation point, and the stage on which they are levied. Excises are, like VAT, indirect taxes, which means that the end-user is normally not identical with the person who is liable for the particular excise. This is only different at import, namely when the end-user (e.g. a private person) is also the importer of the excise goods and a relief of excise duty is not applicable.

Excises in Switzerland

Similar to abroad, excises can also be found in the Swiss tax system. On the federal level excises are levied on mineral oil, beer, tabacco and automobiles. On the level of the cantons (Canton Aargau) can be thought of the excise on beverages.

Excises in the European Union

The excises that are levied in the EU Member States reflect the level of harmonisation that has been achieved in the field of excise law, as well as the restrictions to which the national sovereignity of the EU Member States to levy excises is subjected. The excises that have been harmonized by EC directives are the excises on tabacco, alcohol and alcoholic beverages, and mineral oil. The EC directives harmonize the systematical structures (e.g. taxable events, taxable person, taxable amount, exemptions, procedure for levying the excise) of the aforementioned excises and their tariffs. Other subjects, like administrative co-operation, characteristics of particular excise goods, sales prescriptions, documents, or market organisation for specific goods have been regulated in other EC directives or EC regulations. On EC level, the relevant legal framework for excise goods consists of more than 25 directives, regulations and other legal instruments. Where allowed or necessary, national provisions complement the EC legislation. Both contents and structure of the legal framework make excise law not easily accessable and hence a pitfall for a large number of companies who are involved in transactions that give rise to liability for excise duties.