Australia. The excise duty of AUD 88.91 per litre of alcohol applies to excisable beverages (except beer and wine, where wine includes perry, mead and sake) where the alcohol content is greater than 1.15% abv. A lower rate of AUD 83.04 per litre of alcohol applies to brandy (distilled from grape wine). These rates are indexed to inflation in February and August of each year. Eligible distillers can receive a remission (i.e. not required to pay) of 100% of the excise duty payable up to a maximum of AUD 350 000 per financial year.
Austria. For small distilleries producing not more than 4hl pure alcohol per year the rate is EUR 648 (54% of the standard rate).
Belgium. Other fermented beverages are taxed per hectolitre of product. In analogy to the category “wine”, the following excise rates apply: EUR 74.91 for still fermented beverages, EUR 256.32 for sparkling fermented beverages and a reduced excise rate of 23.91 EUR for low-alcohol fermented beverages (≤ 8.5 % abv).
Canada. As of 1 January 2022, spirits were subject to excise duty at the rate of CAD 12.736 per litre abv; spirits containing not more than 7% abv were subject to excise duty at the rate of CAD 0.322 per litre. (2) Beer with an alcoholic strength in excess of 11.9% abv and fortified wine with an alcoholic strength in excess of 22.9% abv are deemed to be spirits. Automatic inflationary adjustments on duty rates for alcoholic beverages occur annually on April 1. The most recent inflationary adjustments took effect on April 1, 2022. Provincial and territorial governments also charge taxes and mark-ups on spirits. Beverages falling under the category “Other fermented beverages” are generally considered wine for tax purposes.
Chile. Alcoholic beverages are subject to a surtax on the sale or import. The rates applied are the following: 31.5% on liquors, brandy, vermouth, pisco, whiskey and other distilled alcoholic beverages; 20.5% on beer, wine, sparkling wine, champagne, cider and other alcoholic beverages. The tax is applied to the VAT base, that is the sale`s price (excluding VAT itself) and is levied on sales made between wholesale dealers. For sales between wholesalers, the tax paid to the vendor is creditable against the tax applied on sales at each stage of the value chain (including imports) until the last sale to the final retailer. The sale from this retailer to the final consumer is not subject to the surtax and the retailer cannot deduct the input tax nor is levied with this tax the sale of wine in bulk made by producers to a taxpayer seller subject to this surtax.
Colombia. Alcoholic beverages are subject to a 5% VAT. Imported and national alcoholic beverages are subject to a consumption tax of 25% of the retail price (excluding taxes) and COP 262 per grade of alcohol in a bottle of 750cc (Value for year 2022). This specific component is equivalent to COP 349.33 per degree of alcohol in each litre, that is, COP 3 493 333.33 per hectolitre of pure alcohol. It is a monophasic tax payed at moment of import or exit of factory. As a rule, a territory (“Departamento”) must use the same taxable bases and the same rates that apply to the consumption tax, both in its specific component and in its ad valorem component. However, since it is a liquor monopoly, the territory can increase the rates in the two components (specific and ad valorem) or in only one of them. Currently only one territory (Nariño) increased the rate in the specific component, in the other territories the same rates of consumption tax are applied. The introduction of distilled liquors to a territory with monopoly is levied with introduction rights (“Derechos de introducción”) of 2% of annual sales. Undenatured ethyl alcohol destined for the manufacture of liquors may be subject to a monopoly by the territories. In this case, between COP 133 and COP 524 must be paid per litre to the final territory, as defined by the respective territorial authority (Asamblea).
Costa Rica. There is a specific tax for each millilitre of absolute alcohol contained in any domestically produced or imported alcoholic beverage, regardless of its presentation, according to the concentration of alcohol by volume. The law sets the tax rates, which are updated quarterly according to the variation of the consumer price index to the consumer by trimestral period. Liquor: Tax rates varies according the abv for each liquor and beer following these ranges: from 0 up to 15%, between 15% and up to 30%, and above 30 %. Beer and similar: between 15% and 30%.
Czech Republic. The reduced rate of CZK 16 200 per hectolitre of pure alcohol applies for small fruit grower's distilleries producing no more than 30 litres of pure alcohol in fruit spirit per year per household. The excise duty of CZK 2 340 per hectolitre of product is applicable for intermediate products (products containing more than 1.2% and less than 22 % of ethanol). Excise tax applied on other fermented beverages is set at the same level as the tax rate on sparkling wine.
Denmark. The spirit rate also applies to spirit drinks with more than 1.2% alcohol as well as wine and fruit-wine with more than 22% alcohol. Small producers (≤ 10 hl annually) have the rate reduced by 50%. Other fermented beverages as defined under WCO customs code 2206 are taxed as wine, see Table 3.2.
Estonia. Excise duty rate on other fermented beverage is 147.82 EUR per hectolitre of product. Excise duty rate on low alcohol other fermented beverage (up to 6%vol) is 63.35 EUR per hectolitre.
Finland. Excise rates are as follows: (a) CN - code 2208 alcoholic content between 1.2% abv and 2.8% abv.: EUR 3 090 per hectolitre of absolute alcohol; (b) Other products: EUR 5 035 per hectolitre of absolute alcohol. Other fermented beverages are taxed as follows: >1.2 but not exceeding 2.8 % abv: EUR 36.00/hl; >2.8 % but not exceeding 5.5 % abv: EUR 198.00/hl; >5.5 % abv but not exceeding 8 % abv: EUR 287.00/hl; >8 % abv EUR 421.00/hl. Intermediate beverages are taxed as follows: >1.2 but not exceeding 15 % abv: EUR 501.00/hl; >15.00 % but not exceeding 22 % abv: EUR 771.00/hl.
France. Additional taxation for social budget: EUR 578.80 per hectolitre of absolute alcohol.
Germany. (1) The rates for small distilleries are EUR 730 or EUR 1 022. (2) Additional rate for alcopops: EUR 5 550 per hectolitre of absolute alcohol.
Greece. The rate for ouzo and tsipouro / tsikoudia is EUR 1 225 per hectolitre of pure alcohol. The rate for traditional distillate from fruits supplied from the household of the producer, which are distilled in simple copper traditional distilling devices with a capacity of up to 130 litres, is EUR 370per hectolitre of pure alcohol. The rate for other fermented beverages is EUR 20 per hectolitre of final product.
Hungary. A reduced excise rate of 0% applies to ethyl-alcohol produced by fruit growers' distilleries from fruit supplied to them by private fruit growers. The application of reduced rate is limited to 43 litres of pure alcohol for private consumption per fruit grower household per year. The product with reduced rate should not be placed on the market, it is used by the household for its own consumption.
The excise duty rate for other fermented beverages is HUF 9 870/hectolitre of still product and HUF 16 460/hectolitre of sparkling product. The excise duty rate for intermediate products is HUF 25 520/hectolitre of product (definition of intermediate product is in Article 17 of Directive 92/83/EEC).
Undenatured ethyl alcohol is also subject to the public health product tax until 30 June 2022. From 1 July 2022, the public health product tax is incorporated into the excise duty:
a) If its alcohol content is more than 1.2 per cent by volume, but not less than 5 per cent by volume, HUF 25/litre,
b) If its alcohol content is 5 per cent by volume or more, but not less than 15 per cent by volume, HUF 120/litre,
c) If its alcohol content is 15 per cent by volume or more, but not less than 25 per cent by volume, HUF 360/litre,
d) If its alcohol content is 25 per cent by volume or more, but not less than 35 per cent by volume, HUF 600/litre,
e) If its alcohol content is 35 per cent by volume or more, but not less than 45 per cent by volume, HUF 850/litre,
f) If its alcohol content is 45 per cent by volume or more, 1100 HUF/litre.
Ready-to-drinks are subject to a HUF 25/litre public health product tax.
Iceland. Excise rate shown in the table is the rate for other alcohol than beer or wine up to 15% abv. The rate is ISK 162.7 per each centilitre of alcohol.
Ireland. This table illustrates the tax per hectolitre of absolute alcohol for spirits. However, other fermented beverages and intermediate beverages are taxed as follows: other fermented beverages (cider and perry) still and sparkling ≤ 2.8% abv: EUR 47.23/hl. Still and sparkling > 2.8% abv but not exceeding 6.0% abv: EUR 94.46/hl. Still and sparkling >6.0% abv but not exceeding 8.5% abv: EUR 218.44/hl. Still >8.5% abv: EUR 309.84/hl and sparkling >8.5% abv: EUR 619.70/hl. Other fermented beverages (other than cider and perry) still and sparkling ≤ 5.5% abv: EUR 141.57/hl; still >5.5% abv: EUR 424.84/hl and sparkling >5.5% abv: EUR 849.68/hl. Intermediate beverages: still ≤ 15% abv: EUR 424.84/hl; still >15% abv: EUR 616.45/hl; sparkling: EUR 849.68/hl.
Italy. An excise duty rate of EUR 88.67/hectolitre of finished product is applied to intermediate products, i.e. to all alcoholic beverages falling under CN codes 2204, 2205 and 2206 other than beer, wine and other fermented beverages, having an actual alcoholic strength exceeding 1.2 percent by volume but not 22 percent by volume. Intermediate products are also any other still fermented beverages with actual alcoholic strength exceeding 5.5 percent by volume and not entirely obtained by fermentation, as well as any sparkling fermented beverage with actual alcoholic strength exceeding 8.5 percent by volume and not entirely obtained by fermentation.
Japan. Excise rates are as follows (per hectolitre): a) whiskey and brandy (40% abv) JPY 40 000; b) spirits (37% abv) JPY 37 000; c) shochu Group A and B (25% abv) JPY 25 000; d) Sake JPY 11 000. Of the above, reduced rates for small producer of shochu Group A, B and sake (the production of liquor in previous year shall be up to 100 000 hl) apply for the first 2 000 hl of shochu. Group A, B or sake per year at the following rates: (1) if the production of shochu Group A, B or sake in previous year is less than or equal to 10 000 hl, 80% of the normal rates; (2) if the production of shochu Group A, B or sake in previous year is more than 10 000 hl but less than or equal to 13 000 hl, 90% of the normal rates (temporary measure).
Korea. As Excise Tax for liquor is based on the value of the product, the rate does not vary with alcohol content. For whiskey, brandy, general distilled spirits, liquor, diluted soju and distilled soju, the Liquor tax is 72% and the Education tax is 30%.
Latvia. Starting from 1 March 2021 the excise rate is EUR 1724 per hectolitre of absolute alcohol. The reduced excise rate for ethyl alcohol produced by small distillery (not more than 10 hl of absolute alcohol) is applied since 1 March 2019. Starting from 1 March 2021 the reduced rate is EUR 862 per hectolitre of absolute alcohol. Starting from 1 July 2022 the reduced excise rate (50% of standard rate) for fermented beverages produced by small producer (not more than 150 hl) or medium producer (not more than 1500 hl) is applied depending on alcoholic strength: not exceeding 6% abv – EUR 32 per hectolitre of fermented beverages; exceeding 6% abv – EUR 55 per hectolitre of fermented beverages.
Lithuania. Other fermented beverages below 8.5% abv are taxed at EUR 78 per hectolitre of product; other fermented beverages above 8.5% abv are taxed at EUR 181 per hectolitre of product. Starting from 1 January 2022, intermediate products below 15% abv are taxed at 200.00 per hectolitre of product; intermediate products above 15% abv are taxed at 285.00 per hectolitre of product.
Luxembourg. Additional rate for alcopops: EUR 600 per hectolitre.
Mexico. The excise tax is set at an ad valorem rate and not per hectolitre of product. The rates for alcoholic beverages apply to the value of the goods as follows: 26.5% up to 14° Gay-Lussac (G.L.); 30% above 14° G.L. and up to 20° G.L.; 53% above 20° G.L.
Netherlands. For low alcohol spirits with an alcoholic content <1.2% the VAT rate is 9%.
New Zealand. For alcoholic beverages with 9-14% abv, the excise rate is NZD 2.9054 per litre. For alcoholic beverages above 14% abv, the excise rate is NZD 52.916 per litre of absolute alcohol (with the exception of unfortified wine and vermouth, which has the rate of NZD 2.7870 per litre of product).
Norway. Excise rates on fermented beverages are as follows per hectolitre of product: a) 0.0-0.7% abv: NOK 0; b) 0.7-2.7% abv: NOK 331; c) 2.7-3.7% abv: NOK 1 244; d) 3.7-4.7% abv: NOK 2 155. The excise rate for on fermented beverages with an alcoholic content of more than 4.7% abv is NOK 482 per degree of alcohol and hectolitre. Fermented alcoholic beverages containing from 3.7 up to and including 4.7 per cent alcohol by volume, produced by small breweries (production below 500 000 litres annually): NOK 1 724 per hectolitre for volumes up to and including 50 000 litres annually. NOK 1 832 per hectolitre for volumes from 50 000 up to and including 100 000 litres annually. NOK 1 940 per hectolitre for volumes from 100 000 up to and including 150 000 litres annually. NOK 2 047 per hectolitre for volumes from 150 000 up to and including 200 000 litres annually.
Poland. Reduced rates up to 50% of the basic rate also apply to small producers of intermediate products and fermented beverages. The rate is expressed in hl of the finished product and is not based on the alcohol content of 100% vol. Other fermented beverages - Tax per hectolitre of absolute alcohol: Poland imposes excise tax on other fermented beverages (as defined under WCO customs code 2206) per volume of the finished product (not on the alcohol content of 100% vol). This figure (Tax per hectolitre of absolute alcohol) can therefore not be provided.
Portugal. Intermediate products are taxed at EUR 76.10/hl; Ethyl alcohol/spirits: EUR 1 386.93/hl (rates as at 01 January 2020). Other fermented beverages: EUR 10.44/hl (rates as at 01 January 2022). A reduced rate of 50% applies to small distilleries.
Slovak Republic. A reduced rate of 50 % of the national rate of excise duty on ethyl alcohol, applies to ethyl alcohol produced by fruit growers´ distilleries. The application of the reduced rate is limited to 43 litres of ethyl alcohol for personal consumption of the fruit growers´ household per year. A reduced rate of 50 % of the national excise duty rate on ethyl alcohol applies also on private home producer in max. 25 l absolute alcohol per year.
Slovenia. Tax per hectolitre of absolute alcohol is EUR 1 320. For small producers not producing more than 150 litres of pure alcohol per year, the rate is EUR 660 per hl.
Spain. The excise rate in the Canary Islands is EUR 750.36 per hl of pure alcohol. There is a special regime for small distilleries for which the rate is EUR 839.15 per hl (or EUR 653.34 in the Canary Islands).
Sweden. Excise rates for alcoholic beverages (other than beer and wine) are as follow: a) <2.25% abv SEK 0; b) 2.25%-4.5% abv SEK 919; c) 4.5%-7% abv SEK 1358; d) 7%-8.5% abv SEK 1869; e) 8.5%-15% abv SEK 2618. Intermediate products, a) 1.2%-15% abv SEK 3299; b) 15%-22% abv SEK 5479. Ethyl alcohol, 100 % abv SEK 51659.
Switzerland. Under certain conditions, farmers do not pay tax on the alcohol produced for their personal consumption. A reduced rate of 30 % is applied to the first 30 litres of pure alcohol produced per year by small producers. Normal rate: CHF 2900 per hectolitre. Special rates for certain types of wines: CHF 1450 per hectolitre. Special rate for alcopops: CHF 11 600 per hectolitre (Alcopop - also called ready to drink (RTD) or designer drink) is a mix of alcohol and soda.
Türkiye. The excise rate is 0%. If the tax amount computed according to the tax rate is lower than the minimum tax amount specified in the table, then the minimum tax amount is paid.
United Kingdom. All drinks over 22% are taxed as spirits. Most other mixtures of spirits with other types of alcohol are also taxed as spirits. The duty rates for cider and perry are: still cider and perry exceeding 1.2% but less than 6.9% abv =GBP 40.38. Still cider and perry at least 6.9% but not exceeding 7.5% abv = GBP 50.71. Sparkling cider and perry exceeding 1.2% abv but not exceeding 5.5% abv = GBP 40.38. Sparkling cider and perry exceeding 5.5% but less than 8.5% abv = GBP 288.10.
United States. The weighted average Federal and State excise tax rate for undenatured ethyl alcohol is USD 905 per hectolitre. The Federal excise rate is USD 2.70 per proof gallon for the first 100 000 proof gallons, USD 13.34 on the next 22 130 000 proof gallons, and USD 13.50 for every proof gallon over 22 230 000. A proof gallon is a US gallon (3.785 litres) containing 50% alcohol. There is no Federal VAT. The Federal excise rate for other fermented beverages varies by type. The Federal rate for hard cider is USD 0.164 for the first 30 000 gallons, USD 0.17 for the next 100 000 gallons, USD 0.193 for the next 620 000 gallons, and USD 0.226 for every gallon over 750 000. The Federal rate for mead is USD 0.07 for the first 30 000 gallons, USD 0.17 for the next 100 000 gallons, USD 0.535 for the next 620 000 gallons, and USD 1.07 for every gallon over 750 000.