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Generic Tax Name Excise duty - Alcoholic beverages (EU harmonised and purely national duties)
Tax name in the national language Accises sur les alcools et les boissons alcoolisées et taxe de consommation sur les alcools
Tax name in English Excise duties on alcohol and alcoholic beverages and consumption tax on alcohol
Member State LU-Luxembourg
Tax in force since 1925/07/27
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/06/10
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Preliminary remarks:

  • Excise duties on alcohol are divided into 2 components: a common rate which refers to the rate applied jointly by Luxembourg and Belgium in the context of their Customs Union (Union économique belgo-luxembourgeoise), and an autonomous rate which adds on to the common rate. The autonomous rate is referred to as "consumption tax".
  • Excise duties are generally levied on EU-harmonized beverages. The exception is mixed drinks ("alcopops"), where only a national rate applies. 

Time limits for payments: Ministerial Regulation of 22 January 2007 on the time limits for payments of excise duties (Reglement ministériel du 22 janvier 2007 accordant des délais de paiement de l'accise, Mémorial 11, page 354, 12 Februaury 2007).

 

Rates:

  • Grand-Ducal Decree of 29 July 1926 regulating the levying of excise duties laid down by the Law of 27 July 1925 on the tax arrangements applying to spirits (Arrêté grand-ducal du 29 juillet 1926 réglant la perception des droits d'accise établis par la loi du 27 juillet 1925 sur le régime fiscal des eaux-de-vie, Mémorial 1926, p. 549).
  • Budgetary Law of 18 December 2009 (Mémorial A, n° 254, 24 December 2009) (art. 16 )

Grand Ducal Regulation of 17 December 2010 setting some autonomous excise duty rates on energy products (Mémorial A 2010/228, page 3682).

 

Other provisions:

  • ModifiedLaw of 27 July 1925 on the tax arrangements applying to spirits (Loi modifiée du 27 juillet 1925 sur le régime fiscal des eaux-de-vie, Mémorial N° 38 of 1 August 1925, p. 481).
  • Ministerial regulation of 29 July 1996 on the publication of the Belgian Ministerial Decree of 15 July 1996 on the excise regime of beer (Reglement ministériel du 29 juillet 1996 portant publication de l'arrêté ministériel belge du 15 juillet 1996 (…) relatif au régime de la biere, Mémorial N° 54 of 23.08.1996, page 1676).
  • Ministerial regulation (modified) of 29 July 1994 on the publication of the Belgian Ministerial Decree of 10 June 1994 on the excise regime of ethylic alcohol (Reglement ministériel (modifié) du 29 juillet 1994 portant publication de l'arrêté ministériel belge du 10 juin 1994 relatif au régime d'accise de l'alcool éthylique, Mémorial n°82 of 12 September 1994, page 1480).
  • Ministerial Regulation (modified) of 29 July 1994 on the publication of the Belgian Ministerial Decree of 10 June 1994 on the excise regime covering wine, other fermented beverages and intermediary products, (Reglement ministériel (modifié) du 29 juillet 1994 portant publication de l'arrêté belge du 10 juin 1994 relatif au régime d'accise des vins, des autres boissons fermentées et des produits intermédiaires (Mémorial 82 of 12 September 1994, page 1516).
 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

The revenue raised by way of the common rate in the context of the Customs Union with Belgium is shared with Belgium and a part is redistributed tio Luxembourg.

 
Geographical Scope

Grand-Duchy of Luxembourg and Belgium (both countries form a customs union). Mixed drinks (alcopops) are only taxed in Luxembourg.

 
Taxpayers

Excise duties are payable by the manufacturer, the authorised warehousekeeper or the registered trader.

 
Tax object and basis of assessment

Beer: euro per hl° plato  

Wine: euro per hl 

Other fermented beverages: euro per hl 

Intermediary products: euro per hl if the alcoholic content is below 15%; euro per hl if it is between 15 and 22%

Ethylic alcohol: 

  • euros per hl of pure alcohol at the temperature of 20°C (for drinks where the alcoholic content > 22%);
  • small distillers are taxed by way of a flat rate based on the quantity of alcohol derived from the fruits used to produce alcohol.
 
Deductions, Allowances, Credits, Exemptions

Exemptions:

Total exemption from excise duty and consumption taxes is granted for ethyl alcohol when:

  • intended, after prior denaturing, for industrial, scientific and medical uses;
  • used, following prior denaturing, for manufacturing products not intended for human consumption;
  • used for producing vinegar and medicinal products;
  • used, subject to certain conditions, for producing food flavourings;
  • used, subject to certain conditions, as components of semi-finished products for the production of food.
 
Rate(s) Structure
Beer
Standard rate
(in national currency)
Reduced rate
(in national currency)
  "low alcohol" "independent small breweries"
per hl
per °Plato
per hl
per °alcohol
per hl
per °alcohol
per hl
per °Plato
per hl
per °alcohol

Wine
  Standard rate
(in national currency)
Reduced rate
(in national currency)
  per hl per hl
Still
Sparkling

Fermented beverages other than wine and beer
  Standard rate
(in national currency)
Reduced rate
(in national currency)
  per hl per hl
Still
Sparkling

Intermediate products
  Standard rate
(in national currency)
Reduced rate
(in national currency)
  per hl per hl
Still
Sparkling

Ethyl alcohol
  Standard rate
(in national currency)
Reduced rate
(in national currency)
  per hl per hl
Still

Reduced rates (general comments):

  • Beer: Low alcohol: not exceeding 2.8%, Independent small breweries: yearly production limited to 200,000 hl
  • Wine: <= 8,5% vol.
  • Fermented beverages other than wine and beer: <= 8.5% vol.
  • Intermediate products: <= 15% vol.
  • Ethyl alcohol: yearly production limited to 10 hl of pure alcohol
Comments

 

  • Ethyl alcohol: yearly production by small distillers is limited to 20 hl of pure alcohol ( no intra-communitary transactions by themselves allowed)
  • Beer:
    • production between 50,000 and 200,000 hl: € 0.4462
    • production less than 50,000 hl: € 0.3966
  • Mixed drinks ("alcopops"): a purely national duty of € 600 per hl is levied on mixed drinks having a content of alcohol between 1.2 and 10%.
 
Tax due date

Beer, wine, other fermented beverages and intermediary products: the Thursday of the week following the submission of the declaration regarding the release for consumption. 

Ethylic alcohol: the Thursday of the 4th week following the submission of the declaration regarding the release for consumption. 

Alcohol and spirits manufactured on the basis of flat-rate tax arrangements benefit from the following credit terms:

1.Flat-rate distillers

  • Not using a warehouse;
  • Credit period of not more than six months from the declaration (origin of the tax debt);
  • Using a warehouse;
  • Unlimited credit period until validation of the customs permit covering the removal of the alcohol from the warehouse;
  • Credit period of not more than two months from validation of the customs permit covering the removal of alcohol from the warehouse;

2.Industrial distillers and rectifiers

An unlimited credit period may be granted to industrial distillers and rectifiers for phlegmas purchased and warehoused. A credit period of not more than six months as from the transcription of duties and tax to their account may be granted to the same persons for the payment of duties and tax charged on phlegmas purchased but not warehoused.

 
Tax collector

The excise duty becomes due on release for consumption or on detection of shortages and is collected by Customs & Excise Administration (Administration des douanes et accises).

 
Special features
 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d214aa + d2122ca + d2122ci

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 32.97 EUR 0.08
2011 32.84 EUR 0.08
2010 30.70 EUR 0.08
2009 27.30 EUR 0.07
2008 28.10 EUR 0.07
2007 27.90 EUR 0.08
2006 26.40 EUR 0.08
2005 28.30 EUR 0.10
2004 30.00 EUR 0.11
2003 30.00 EUR 0.12
2002 27.40 EUR 0.11
2001 25.70 EUR 0.11
2000 25.70 EUR 0.11

Comments