Tobacco products are products for the purposes of smoking, chewing, sucking or sniffing, inasmuch as they are, even partly, made of tobacco.
Tobacco products are classified as smoking and smokeless tobacco products.
Smoking tobacco products are cigars, cigarillos, cigarettes and smoking tobacco.
The types of smokeless tobacco products are tobacco products the consumption of which does not involve combustion process, including chewing tobacco, nasal tobacco (snuff) and tobacco for oral use.
Handling of smokeless tobacco products is prohibited.
An alternative tobacco product is a tobacco product with or without nicotine content that is not a classical tobacco product and that is used or designed for use similarly to or for a purpose similar to that of a tobacco product.
Alternative tobacco products include, for example:
tobacco liquid, including e-liquid, flavoured or unflavoured, with or without nicotine content and used in a device designed for consuming an alternative tobacco product or for being added to tobacco or a substitute thereof;
solid tobacco substitute, with or without nicotine content, flavoured or unflavoured, and designed for use similarly to or for a purpose similar to that of a tobacco product.
Handling of tobacco products means:
- the manufacture, processing or packaging of tobacco products (manufacture of tobacco products);
- trading in tobacco products;
- the possessing, storage or distribution of tobacco products for commercial purposes or in a commercial quantity.
An operator entered in the business register has to submit a notice of economic activities in order to be engaged in the sale of tobacco products in the following areas of activity: retail trade, wholesale trade and catering. The notice of economic activities has to contain information on the goods – tobacco products, and information concerning the import or export of tobacco products as well as the position and name of the place or places of business.
Distance selling of tobacco products (both cross-border and domestic) is prohibited pursuant to § 22 of the Tobacco Act. It is also prohibited to bring tobacco products to Estonia by means of distance sale.
Excise duty is imposed on tobacco products manufactured in Estonia, brought into Estonia from another Member State and imported to Estonia for free circulation. Excise duty on tobacco products manufactured in Estonia shall be paid by an excise warehousekeeper; excise duty on tobacco products brought into Estonia from another Member State shall be paid by an excise warehousekeeper, a registered consignee or a recipient of excise goods; excise duty on tobacco products imported into Estonia shall be paid by an importer.
An excise warehousekeeper is authorised to manufacture, process, store, receive and dispatch untaxed tobacco products in an excise warehouse under the excise suspension arrangement. Excise warehousekeepers have to provide the Estonian Tax and Customs Board a security in order to ensure the payment of tax liabilities arisen or which may arise. Tax liability on tobacco products arises upon their dispatch from an excise warehouse without the excise suspension arrangement, i.e. excise duty on tobacco products is imposed only when goods have left an excise warehouse. An excise warehousekeeper has to pay the excise duty and submit an excise duty return regularly and not later than by the 20th day of the month.
For a registered consignee, tax liability arises upon receipt of tobacco products dispatched from another Member State. In registered consignees’ place of business it is allowed to store only tobacco products taxed by excise duty. Registered consignees have to submit a security to the Estonian Tax and Customs Board in order to ensure the payment of excise duty on tobacco products received in their place of business. For registered consignees, the taxable period applicable to tobacco products is one calendar month and, like in the case of excise warehousekeepers, excise duty has to be paid not later than by the 20th day of the calendar month following the period of taxation.
Excise duty on tobacco products released for consumption in another Member State and transported to Estonia for commercial purposes shall be paid by the person who receives the tobacco products. The consignee has to lodge an excise duty return and pay excise duty not later than on the fifth day after the tax liability arises. The recipient notifies the Estonian Tax and Customs Board of the intention to receive tobacco products before excise goods are dispatched from another Member State, and at the request of the tax authority provides a security to ensure the payment of tax liabilities which may arise.
For an importer of tobacco products, tax liability arises upon the importation of tobacco products – generally on the day when the customs debt is incurred, and the excise duty will be paid in accordance with the customs legislation.
Tobacco products have to be revenue stamped upon release for consumption or importation unless they are subject to the excise suspension arrangement or exempted from excise duty pursuant to § 26 and § 27 of the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act.
A revenue stamp is a special marking which conforms to special security requirements which is affixed to excise goods or their sales packaging indicating that excise duty has been paid.
Revenue stamps can be ordered from the Estonian Tax and Customs Board through the revenue stamps information system MAIS. If you wish to order revenue stamps, please send us an email at firstname.lastname@example.org. In your email please indicate the name of the person ordering revenue stamps and registry code.
Importers of tobacco products, excise warehousekeepers, registered consignees and persons who, for commercial purposes, transport to Estonia tobacco products released for consumption in another Member State can order revenue stamps from the Estonian Tax and Customs Board, if they meet the following requirements:
- the person holds a valid excise warehouse activity licence or activity licence of a registered consignee, the importer has submitted the written notice of economic activities which includes the information on the import of tobacco products, or the person has submitted the notice of economic activities on the wholesale of tobacco products and the tax authority has been notified in writing of the intention to receive excise goods before the excise goods are dispatched from another Member State;
- the person does not have tax arrears, including tax arrears payable in instalments;
- the person has compensated for the costs of printing revenue stamps incurred in the case specified in the legislation;
- the person has provided security accepted by the Estonian Tax and Customs Board;
- the person has notified the place where the excise goods are to be revenue stamped.
In Estonia it is allowed to revenue stamp tobacco products in excise warehouses, customs warehouses, places of business of persons who for commercial purposes transport to Estonia tobacco products released for consumption in another Member State, and places of business of registered consignees.
The person ordering revenue stamps has to notify the Estonian Tax and Customs Board of the maximum retail price of cigarettes, cigars or cigarillos and the quantity of tobacco products in the sales packaging and, in the case of tobacco products not referred to above, the type of tobacco products and the quantity of tobacco products in the sales packaging.
Revenue stamps are issued in Tallinn, at the address Lõõtsa 8a.
A revenue stamp has to be affixed to a tobacco product within 90 calendar days after the date of receipt of the revenue stamps from the Estonian Tax and Customs Board.
At the justified written request of the receiver of revenue stamps the term for affixing revenue stamps on tobacco products can be extended by another ninety-day period.
It is prohibited to transfer the revenue stamps which are not affixed to tobacco products or their sales packaging.
Tobacco products which have been revenue stamped may be imported or received from another Member State only by the person who ordered the revenue stamps. Tobacco products dispatched from another Member State which are not released for consumption (which are under the excise suspension arrangement) can be received in Estonia only in an excise warehouse or the place of business of a registered consignee. Within Estonia, tobacco products not released for consumption can be moved from one excise warehouse to another. An excise warehousekeeper may dispatch revenue stamped tobacco products on which excise duty has not been paid to other excise warehousekeepers if the excise warehousekeeper has notified the Estonian Tax and Customs Board through the revenue stamps information system MAIS of the details of the revenue stamps affixed to the tobacco products to be dispatched or to their sales packaging.
Tobacco products are revenue stamped only if the obligation to pay excise duty on the tobacco products arises in Estonia. If a revenue stamp is affixed to a product which is not subject to revenue stamping, the revenue stamp will be deemed an object of offence. Upon dispatch of excise goods bearing revenue stamps to foreign states the excise suspension arrangement is not applied, i.e. excise duty on revenue stamped products upon dispatch to foreign states has to be paid in Estonia.
When moving between EU Member States, tobacco products have to be accompanied by mandatory delivery notes of excise goods laid down by EU legislation: electronic delivery note eSL (tobacco products transported under the excise suspension arrangement) or SAAD (tobacco products released for consumption).
Likewise, in the case of domestic transportation tobacco products dispatched from an excise warehouse have to be accompanied by the mandatory delivery note A (upon dispatch under the excise suspension arrangement) or the delivery note T (upon dispatch for consumption) laid down by Regulation No 22 of the Minister of Finance of 25 June 2014.
Electronic delivery notes eSL are processed in the EMCS (Excise Movement and Control System). Simplified accompanying documents (SAAD) and national delivery notes A and T are processed in the SADHES (national electronic system of delivery notes).
Upon the importation of tobacco products a delivery note is replaced by a customs declaration.
Tobacco products which are consumed on board an aircraft or ship during an intra-Community passenger service are exempt from excise duty, except goods sold to be taken away.
Supplying aircraft or ships located in another Member State
Tobacco products exempt from excise duty can be transported on board of an aircraft or ship located in another Member State if the tobacco products have been placed under the customs procedure of export upon dispatch from the excise warehouse.
In order to dispatch tobacco products under the excise suspension arrangement on board of an aircraft or ship located in another Member State, an excise warehouse keeper has to draw up an electronic delivery note in the EMCS (destination type – export, customs office of export – the Estonian customs office of export), and export declaration in the Complex (profile A, code of procedure 1045, additional code of procedure F61, customs office of exit – the relevant customs office in the country of destination, previous document – the electronic delivery note eSL).
For proper completion of an e-delivery note, an exit note has to be made on the relevant customs declaration in the ECS system.
Taxation of cigarettes, cigars and cigarillos without revenue stamps
Excise duty on cigarettes, cigars and cigarillos without revenue stamps are calculated on the basis of their prevailing price at the time when the tax liability arises.
The prevailing price of cigarettes, cigars and cigarillos is calculated on the basis of the data of the preceding calendar year by dividing the total value calculated on the basis of the maximum retail prices of cigarettes, cigars and cigarillos released for consumption based on the types of the specified tobacco products by the total number of cigarettes, cigars and cigarillos released for consumption.
Prevailing price of cigarettes
In 2019 the prevailing price of cigarettes is 3.78 euros.
In 2018 the prevailing price of cigarettes was 3.55 euros.
Prevailing price of cigars
In 2019 the prevailing price of cigars is 7.83 euros per cigar.
In 2018 the calculation was based on the minimum excise duty amount payable: 211 euros per 1000 cigars.
Prevailing price of cigarillos
In 2019 the prevailing price of cigarillos is 0.64 euros per cigarillo.
In 2018 the calculation was based on the minimum excise duty amount payable: 211 euros per 1000 cigarillos.
Estonian Tax and Customs Board, Tax Department
- Excise duty rates of Estonia »
- Excise duty rates of the EU Member States
- "Excise duty tables. Part III - Manufactured tobacco" (PDF) - the document prepared by the European Commission
- Alcohol, Tobacco, Fuel and Electricity Excise Duty Act
- Tobacco Act
- Handling of alternative tobacco products (including e-liquids) and taxation with excise duty from 01.01.2018