Excise duties

The classification of a product is decisive for the taxation of excise duties. Examples include energy tax on fuel, where the commodity code is used to determine whether there is a tax liability and whether any exemptions can be applied. We represent our clients before authorities and courts and offer proactive advice to analyse and assess how a product should be classified.

Companies that manufacture, import or stock excise goods may be required to register as a taxable person for excise purposes. For many companies, it can be difficult to determine whether there is an obligation to register or whether it may be beneficial to register in order to minimise the company’s cash-flow burden or to otherwise be able to handle the goods under tax suspension.

In many cases, the receipt, handling and sale of excise goods require authorisations other than registration as a taxable person. Examples include authorisation as an authorised warehouse keeper, registered consignee and registered consignor.

We assist our clients in applying for authorisations and advise on day-to-day management such as reporting and documentation requirements, guarantees, movements of excise goods and communication with competent authorities.

For most excises duties there are exemptions which can be applied by the taxable person making deductions or claiming refunds of excise duties. Examples include:

• deduction of energy tax on fuel used to produce electricity,
• deduction of tax when excise goods are used in the production of new excise goods such as tobacco, alcohol and fuels.

We assist our clients in analysing and assessing whether there is a right to deduct or the possibility of a refund. Our advice also includes assessment of documentation requirements and, where necessary, assistance in reassessing previous reporting periods.

Our compliance assistance aims to enable clients to comply with applicable rules, regulations, laws and processes when dealing with excise duties. We help clients ensure compliance proactively by checking, among other things: documentations, authorisations and internal procedures and methods.

In connection with the development of new goods or products, changes in operations or new legislation, it may be necessary to review excise duty management. Our advice aims to ensure compliance and to create an efficient excise duty management. To achieve this, we are involved in our clients’ proposed plans and describing the pros and cons of different measures. For these purposes, we assist our clients with mapping and analysing new flows of goods or products, updating or changing authorisations, reviewing and updating internal procedures for reporting and communication with the competent authorities.

We assist our clients in applying for advanced rulings from competent authorities in the field of excise duties. An advance ruling can be requested in matters where relevant legislation and case law do not provide clear guidance or when legislation has changed. An advanced ruling result in a legally binding decision for the applicant and the authorities. Applying for an advanced ruling is advisable for businesses working with new technologies or new products as well as for companies planning to change their operations and previous excise duty treatment.

We act as tax representative and assist our clients in filing excise duty returns to National Tax Agencies. The work includes reviewing, analysing and following up the documentation.