Who accounts for losses of excise goods?

You transport excise goods between European Union countries and it turns out that during the movement there were losses in the goods. Well, these are the losses that should be accounted for or taxed with excise duty. In the light of excise tax regulations, losses occur not only during the movement of excise goods.

Transportation of excise goods and loss of goods

You transport excise goods between European Union countries and it turns out that during the movement there were losses in the goods. Well, these are the losses that should be accounted for or taxed with excise duty.

In light of excise tax regulations, losses do not only arise during the movement of excise goods.

Losses of excise goods are all losses that arise during the application of the excise duty suspension arrangement. These include, among others: losses or shortages of excise goods arising during production, storage, processing, consumption or transport.

However, they are subject to taxation only in the event that, during the above-mentioned activities, the permissible standards are exceeded, which are determined by a decision of the competent head of the tax office.

Therefore, who will be responsible for the settlement of losses of excise goods if the movement takes place between the Member States of the European Union?

As per the directive Council 2008/118/EC of 16 December 2008. on the general rules on excise duty , the administration of the country of recipient of the excise goods is competent. The regulations regarding the standards in force in the country of receipt will apply to the examination and settlement of the resulting losses. The taxpayer will be an entity from the Member State of dispatch of the excise goods.

In accordance with the interpretation of Art. 20(2) of Directive 2008/118/EC, the unloading and determination of losses of excise goods are considered as part of the movement. The movement ends when the consignee determines the exact quantity of goods actually received. According to the Commission, the deficiencies of the shipped products should be determined before sending the acceptance report.

This is also confirmed by the judgment of the Court of Justice in case C-64/15 of January 28, 2016, in which the Court indicated that the suspension procedure for the consignor ends only when the goods at the consignee are fully unloaded and a report will be issued on this basis reception.

Thus, the taxpayer of excise duty due to losses of excise goods moved between the Member States of the European Union, obliged to submit the appropriate declaration for excise duty within the deadline, will, as a rule, be the entity that provided the guarantee for the movement of these goods (foreign entity). If he fails to do so, he will receive an appropriate summons via the EMCS system, and in the event of failure to fulfill the obligations arising from the summons, tax proceedings will be initiated.

    Author:

    Agnieszka Szkutnik

    Tax advisor, Expert customs and excise duties

    Customs and excise expert. For over 25 years, he has been a customs and customs and tax officer in control, judicial and managerial positions. Supports the operation of entrepreneurs, including customs agencies in the field of customs consultancy, excise duty, tax on games, authorized entrepreneur with AEO status, or tax and customs warehouses. Provides assistance in obtaining Binding Tariff Information and in solving problems related to the obligations and control under the SENT system.

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