See more content about compliance in United Kingdom:
* VAT compliance in United Kingdom
* VAT rates on products and services in United Kingdom
* INTRASTAT compliance in United Kingdom
* Import without VAT in United Kingdom
See more content about excise duties :
1- Definition of “Alcoholic Beverages”
2- From a tax point of view :
2.1- Distance selling of alcoholic beverages
2.2- Excise duties via local tax representative
2.3- Calculate excise duties to pay in destination / to claim in your own country
2.4- Drawback/refund of excise duties
2.5 – INTRASTAT
3- Alcohol online market
3.1- Circulation of cross-border orders
3.2- Labelling cross-border orders (ingredients)
3.3- Labelling alcohol with destination duty stamps
3.4- Contractual duties of e-retailers and Consumer’s rights
3.5- Monopoly
3.6- Packaging wastes compliance
Legal framework
European framework :
Directive 2008/118/CE (in force until 2023)
Directive 2020/262/CE (fully in force from 2023)
National transposition:
Beer, Wine, Cider and Perry, Alcohol, is in force since 01/01/1979 in United Kingdom.
Excise duties for alcoholic beverages, in United Kingdom, fall under :
Beer
Under the Small Brewers Relief Scheme, production up to 5,000 hectolitres is eligible for 50% relief on duty payable. Brewers producing more than 5,000 but less than 30,000 hectolitres are entitled to the same duty relief on their first 5,000 hectolitres of production but the remaining production is payable at the full rate. Those brewers producing more than 30,000 but less than 60,000 hectolitres receive relief according to taper formulae. Brewers producing more than 60,000 hectolitres receive no relief.
Cider and Perry
There is an exemption for cider makers who produce less than 70 hectolitres per year.
Ethyl Alcohol
Spirits produced in the United Kingdom are generally relieved of excise duty if they are converted to denatured alcohol to make them non-potable or if they are used for medical or scientific purposes. Similarly, spirits contained in imported products which are not for human consumption or which are used for medical purposes may generally be relieved of duty.
Alcoholic Ingredients Relief (AIR)
Exemption is provided by repayment of duty for alcohol that is contained in footstuffs. The proportion of alcohol must not exceed 8.5 litres per 100 kilograms of chocolates, or 5 litres per 100 kilograms of any other foodstuff.
(*) Up to date until : 1/1/2020 ( last checked on 1/30/2020 5:53:00 PM)
The authority which benefits from excise duties incomes is :
• Central authority
On 1.2.2019, changes came in amending the rates as follows:
288.65 GBP increase to 297.57 GBP
369.72 GBP increase to 381.15 GBP
88.93 GBP increase to 91.68 GBP
122.30 GBP increase to 126.08 GBP
279.46 GBP increase to 288.10 GBP
Competent authority in United Kingdom
H.M. Revenue & Customs
Excise: Enquiries or
www.gov.uk ‘contact us’
www.gov.uk
443 002 002 003 700
Collector of tax :
HM Revenue & Customs
Area where the law applies :
Mainland UK – United Kingdom (former Member State)
Taxpayers
• Authorised warehouse keeper
• Importer
• Producer
• (Temporary) registered consignee
Tax due date and collecting Authority
For production premises, 15th day of the month following the release for consumption (when duty is incurred).
• At the time the tax debt arises
• Other
For production premises, 15th or 25th day of the month following the release for consumption depending on the alcoholic product (when duty is incurred).
Taxable amounts and deductions, credits, exemptions
Which alcoholic beverages are taxable in United Kingdom?
• Beer
• Sparkling and non-sparkling wine
• Fermented beverages other than wine or beer
• Intermediate products
• Ethyl alcohol
Beer
Beer, ale, porter, stout and any other liquor manufactured for sale that is described as beer or a beer substitute and which is of an alcoholic strength exceeding 1.2% by volume. This includes mixtures of beer with non-alcoholic drinks, for example shandy. The legal definition of beer includes beer of an alcoholic strength exceeding 0.5%, but duty is not payable where the strength exceeds 0.5% but does not exceed 1.2%.
Wine
Wine and made wine imported into the United Kingdom or produced for sale in the United Kingdom and which is of a strength exceeding 1.2% alcohol by volume.
“Wine” means any liquor obtained from the alcoholic fermentation of fresh grapes or the must of fresh grapes, whether or not the liquor is fortified with spirits or flavoured with aromatic extracts; “made wine” means any liquor obtained from the alcoholic fermentation of any substance, or by mixing liquor so obtained or derived from a liquor so obtained with any other liquor, but does not include wine, beer, black beer, spirits or cider.
Cider and perry
The excise duty is payable on cider (or perry) of a strength less than 8.5% alcohol by volume (at a temperature of 20°C) obtained from the fermentation of apple or pear juice without the addition at any time of any alcoholic liquor or of any liquor of substance which communicates colour or flavour other than such as the Commissioners of HM Revenue and Customs may allow as appearing to them to be necessary to make cider (or perry). There are three strength bands for still cider and perry; and two more bands for sparkling cider (or perry).
Ethyl Alcohol
Spirits made in the United Kingdom, imported spirits and goods containing spirits, delivered for home use , and which are of a strength exceeding 1.2% alcohol by volume.
What is the basis of assessment?
• Alcoholic strength by volume
• Other
The excise duty on beer is assessed by reference to the quantity and alcoholic strength.
The rates of excise duty chargeable on wine, made wine and cider depends on their strength measured by reference to the percentage of alcohol by volume at a temperature of 20 °C.
The excise duty on ethyl alcohol is assessed by reference to quantity of pure alcohol.
Excise duties in United Kingdom for beer
For breweries producing less than 5,000hl, 50% of the standard beer duty rate is applied.
For breweries producing between 5,000hl and 30,000hl the following formula is used: (annual production – 2,500)/annual production x standard rate.
For breweries producing between 30,000hl and 60,000hl the following formula is used:
(annual production – (2,500hl – 8.33% of annual production in excess of 30,000hl))/annual production x standard rate.
With effect from 1st October 2011 an additional duty, High Strength Beer Duty, is charged on beers exceeding 7.5% alcohol by volume at £5.48 per hectolitre.
Standard rate for beer in United Kingdom
| 21.449 EUR (VAT applied is 20%) °ALC 2,8 – 7,5 % 27.8455 EUR (VAT applied is 20%) °ALC > 7,5 % |
Reduced Rate “Low alcohol” (<= 2.8%) for beer in United Kingdom
| 9.4655 EUR (VAT applied is 20%) °ALCOHOL 1,21 – 2,8 % |
Reduced Rate applied to independent small breweries (yearly prod. Under 200 000 hl) in United Kingdom
** not in application for distance selling purpose **
Excise duties in United Kingdom for wine
On 1.2.2019, changes came in amending the rates as follows:
288.65 GBP increase to 297.57 GBP
369.72 GBP increase to 381.15 GBP
88.93 GBP increase to 91.68 GBP
122.30 GBP increase to 126.08 GBP
279.46 GBP increase to 288.10 GBP
STANDARD RATE
Standard rate for STILL wine in United Kingdom
| 334.5175 EUR /hl/ ° ALCOHOL (VAT applied is 20%) ** Exceeding 5.5% – not exceeding 15% abv |
Standard rate for SPARKLING wine in United Kingdom
| 428.4751 EUR /hl/ ° ALCOHOL (VAT applied is 20%) ** if 8.5% and above – not exceeding 15% abv |
REDUCED RATE (under 8.5% vol.)
Reduced rate for STILL wine in United Kingdom
| 103.0633 EUR /hl/ ° ALCOHOL (VAT applied is 20%) ALC° 1.2% – 4% 141.7346 EUR /hl/ ° ALCOHOL (VAT applied is 20%) ALC° 4% – 5.5% |
Reduced rate for SPARKLING wine in United Kingdom
| 323.8716 EUR /hl/ ° ALCOHOL (VAT applied is 20%) ** if exceeding 5.5% – less than 8.5% abv |
Excise duties : Fermented beverages other than wine and beer in United Kingdom
On 1.2.2019, changes amended the rates as follows:
279.46 GBP increase to 288.10 GBP
In addition, a new rate comes into force for cider and perry at least 6.9% – not exceeding 7.5% of 50.71 GBP.
Current rate for cider and perry exceeding 1.2% not ex
STANDARD RATE
Standard rate for STILL fermented products in United Kingdom
| 68.619 EUR /hl/ ° ALCOHOL (VAT applied is 20%) Cider and perry exceeding 7.5% – less than 8.5% abv 45.3937 EUR /hl/ ° ALCOHOL (VAT applied is 20%) Cider and perry exceeding 1.2% – less than 6.9% abv 57.0064 EUR /hl/ ° ALCOHOL (VAT applied is 20%) Cid |
Standard rate for SPARKLING fermented products in United Kingdom
| 45.3937 EUR /hl/ ° ALCOHOL (VAT applied is 20%) Cider and perry exceeding 1.2% – not exceeding 5.5% abv 323.8716 EUR /hl/ ° ALCOHOL (VAT applied is 20%) Cider and perry exceeding 5.5% – less than 8.5% abv |
REDUCED RATE
Reduced rate for STILL fermented products in United Kingdom
| 68.619 EUR /hl/ ° ALCOHOL (VAT applied is 20%) Cider and perry exceeding 7.5% – less than 8.5% abv 45.3937 EUR /hl/ ° ALCOHOL (VAT applied is 20%) Cider and perry exceeding 1.2% – less than 6.9% abv 57.0064 EUR /hl/ ° ALCOHOL (VAT applied is 20%) Cider |
Reduced rate for SPARKLING fermented products in United Kingdom
| 45.3937 EUR 323.8716 EUR |
Excise duties : Intermediate products in United Kingdom
On 1.2.2019, changes came in amending the rates as follows:
288.65 GBP increase to 297.57 GBP
384.82 GBP increase to 396.72 GBP
STANDARD RATE
Standard rate for STILL intermediate products in United Kingdom
| 445.9783 EUR /hl/ ° ALCOHOL (VAT applied is 20%) if °ALC is xceeding 15% – not exceeding 22% |
Standard rate for SPARKLING intermediate products in United Kingdom
| not applicable |
REDUCED RATE (under 15% vol)
Reduced rate for STILL intermediate products in United Kingdom
| 334.5175 EUR /hl/ ° ALCOHOL (VAT applied is 20%) |
Reduced rate for SPARKLING intermediate products in United Kingdom
| not applicable |
Excise duties : Ethyl alcohol (spirits, liquors, etc.) in United Kingdom
STANDARD RATE
Standard rate for Ethyl alcohol in United Kingdom
| 3,230.8471 EUR /hl/ ° ALCOHOL (VAT applied is 20%) |
Reduced Rate for Ethyl alcohol in United Kingdom : Low strength spirits, particular regions, etc.
| not applicable |