Excise Duties

 Published: 07.01.2021. 16.45


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! In 2021, a number of significant changes in tax administration will take effect.
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Excise Duties
 

Excise duty is a specific consumption tax applied to specific groups of consumer goods that are produced or imported into the country. The purpose of excise duties is to limit the consumption of goods that are harmful to the environment and people, as well as to provide the state with revenue by imposing an additional consumption tax (in addition to VAT) on goods that are not basic necessities and that do not affect the poor. However, the main purpose of excise duty is fiscal, i.e. to provide revenue to the state.

Taxable goods
 

  • Oil products
  • Alcoholic beverages
  • Tobacco products
  • Non-alcoholic beverages
  • Coffee (including coffee extracts, essences, and concentrates)
  • Natural gas
  • Liquids to be used in electronic cigarettes
     

For more information: Commission Implementing Regulation (EU) 2018/1602 of 11 October 2018 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff

Who pays excise tax?
 

  1. Importers who apply for the Release for Free Circulation customs procedure for excise goods imported into Latvia from countries that are not an EU Member State.
  2. Authorised warehousekeepers who hold excise goods in warehouses they own or manage.
  3. Registered consignors (senders), who are only authorised to send alcoholic beverages, tobacco products or petroleum products, applying deferred payment of tax when they are released for free circulation.
  4. Registered consignees (receivers) who are not authorised warehousekeepers but who have authorisation to receive alcoholic beverages, tobacco products, or petroleum products from other Member States or from registered consignors and approved warehousekeepers in Latvia for which deferred payment of tax is applied.
  5. Temporarily registered consignees who are not authorised warehousekeepers but who have authorisation for a one-time only receipt of specific alcoholic beverages, tobacco products or petroleum products from other Member States or from registered consignors and authorised warehousekeepers in Latvia for which deferred payment of tax is applied.
  6. Forwarders/transfer traders who send excise goods from one Member State to a person in another Member State who is not an authorised warehousekeeper, registered consignee, or temporarily registered consignee.
  7. A person who imports into Latvia or receives from other Member States excise goods that have already been released for free circulation in another Member State.
  8. Persons who import non-alcoholic beverages, coffee, natural gas or fluids used in electronic cigarettes into Latvia.
  9. Other persons as defined by the Law On Excise Duties.