Taxes in Europe Database v2
Law on tax on tobacco, see Statutory Notice No 635 of 21 August 1998 and later amendments.
The current law on tax on tobacco was introduced 19 December 1992, but tobacco has been a taxation object in Denmark for a around a decade.
-Smoking tobacco (pipe tobacco and fine cut tobacco).
-Cigars, cheroots and cigarillos.
The taxable value of the goods is the retail price including tax and VAT.
Before the goods leave the factory.
Goods are delivered from the producer or wholesaler to the retailer.
Businesses that import or manufacture tobacco are required to register with the customs service.
The tax is payable by means of a stamp affixed to the packet by the manufacturer. The stamps are bought from the customs service at a price equal to the tax on the goods in question.
By providing a security, however, businesses may be granted one month and 20 days' credit for the purchase of these stamps as regards cigarettes and two months and 15 days' credit as regards smoking tobacco.
The tax on imported goods is payable on entry. The regulation relating to these rates, payment of tax by means of stamps and credit for the payment of the tax are the same as those which apply to domestic products.
The tax is payable by the importer or wholesaler on the same terms as for domestic products.
Importers, manufacturers and wholesalers of cigars, cheroots and cigarillos are required to register with the customs service.
Businesses which pay tax on these goods are required to declare to the customs service, not later than the 15th day of each month, their total taxable turnover during the previous month.
The tax payable on taxable turnover during any month must be paid before the 15th day of the following month. By providing security, however, the business may be allowed to defer payment for two months. In such cases, therefore, the tax on any month's taxable turnover must be paid not later than by the 15th day of the third month thereafter.