Changes to the Dutch Excise Duties Act

11/10/21

Two new EU excise duties directives have been adopted in 2020 and must be implemented by the EU member states in their local legislation, these are the recast of the general arrangements for excise duties directive and the alcohol structures directive. To meet this obligation the changes to the Dutch excise duties act have been proposed.

Furthermore, it implements the requirements of a third EU Directive regarding the Union framework of defense efforts

What does this mean for your business?

When your company is performing excise duty related activities in the Netherlands, the proposed changes may impact your operations. Therefore, in such a case you are advised to look whether and/or how this may affect your operations. 

Since these new directives not only have to be implemented in the Netherlands. Other EU member states will also need to ensure they have implemented them correctly in their national legislation, changes are also expected in other EU member states. So if you have operation in multiple EU member states you should monitor those as well.

The main changes

The changes relating to the recast of the general arrangements are:

  • The adjustment to the Union Customs Code (UCC), replacing the referrals to the Community Customs Code and adjusting to the UCC definitions.
  • The possibility of applying external transit for exporting excise products under excise duties suspension, instead of using the e-AD. Where this option is applied, the products will lose their Union status.
  • The introduction of an electronic simplified administrative document (e-SAD) replacing the “old” paper SAD. For facilitating the use of the e-SAD, the Excise Movement and Control System (EMCS) will be adjusted. Furthermore, two new roles are introduced, i.e. the certified consignor and the certified consignee, together with the rules laying down their roles and responsibilities.
  • The terminating of the obligation for appointing a fiscal representative where distant sales are applicable. The distant sales supplier may choose to register and arrange the payment of excise duties in the country of the recipient by himself.
  • Unification of rules regarding losses.

The changes for complying with the changes of the alcohol structures directive are:

  • An adjustment of the method for determining the degree Plato content of beer products. Following a decision of the European Court of Justise the method has been adjusted to implement a uniform approach in the EU. The degree Plato is one of two methods to be used as the tax basis, a member state may opt for and is currently applicable in the Netherlands. The other method is the alcohol strength. The Dutch Government is now proposing to shift to the alcohol strength, arguing that this will be easier to apply.
  • The option to extend the application of lower tax rates for small producers. The Dutch Government is proposing to not apply the extension, in fact it is proposing to withdraw the current low rates for small beer brewers  
  • In view of the facilities for small producers the new Directive implements the a (self) certification for small producers. Although, the small producer reductions will not be applied in the Netherlands, the (self)certification for small producers will be implemented, as this may be required for Dutch small producers selling their products in other EU member states.  

The changes for implementing the requirements of the directive regarding the Union framework of defense efforts looks at unifying exemptions of excise duties and VAT for operations of EU defense organizations, e.g. when performing NATO actions.

Let's talk!

Should you need any advice on this matter, please contact your usual PwC customs and international trade specialist at PwC.

Contact us

Claudia Buysing Damsté

Claudia Buysing Damsté

Partner, PwC Netherlands

Tel: +31 (0)65 103 04 63

André Stoop

André Stoop

Senior Manager - Customs & International Trade, PwC Netherlands

Tel: +31 (0)62 293 16 98

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