Tax liability on alcohol released for consumption in another member state and conveyed to Estonia for commercial purposes arises upon the receipt of the goods and the person who receives the alcohol pays the excise duty.
Tax liability does not arise upon the receipt of alcohol if the consignee (both as a natural person and according to the information of accompanying document) is:
- the holder of a permit for exemption from excise duty who is entitled to use or receive alcohol products exempt from duty;
- excise warehouse keeper.
The warehousing of excise goods, including intermediate storage of the goods intended for use in another member state is also deemed to be commercial use. As an exception, the storage of alcohol on board an aircraft or ship used for international carriage of passengers is not deemed to be the use for commercial purposes, if these goods are not sold at the time the aircraft or ship is located in the territory of Estonia.
Receipt of alcohol in ordinary warehouse
Before the dispatch of alcohol from another member state, the consignee has to perform the following procedures:
- to notify ETCB of the expected consignment of alcohol (accompanying document, profile SAAD2) through the SADHES system;
- to provide security at the request of ETCB to ensure the payment of excise duty on the alcohol transported to Estonia;
- as appropriate, to order revenue stamps for the alcohol received through the MAIS system (revenue stamps information system).
Upon transportation of alcohol from another member state into Estonia, the consignment has to be accompanied by the paper version of the accompanying document SAAD specified in Commission Regulation (EEC) No 3649/92, which is completed by the consignor.
Tax liability on the alcohol received arises to the consignee on the day of the receipt of goods.
The consignee of alcohol has to perform the following procedures no later than five days after the alcohol is received:
- to confirm the receipt of alcohol on the paper version of SAAD, check the consignment against the accompanying document and in the case of discrepancies indicate on the document correct information on the document;
- to notify ETCB of the receipt of alcohol through SADHES (SAAD2 history → Enter the report of receipt) and upload the SAAD signed by the consignee;
- to submit an excise duty return and pay excise duty. The excise duty return is not submitted if no tax liability incurs upon the receipt of alcohol or the alcohol received is exempt from excise duty ( for example completely denatured alcohol).
If revenue stamps have to be affixed to the alcohol received, it must be done immediately after the conveyance of alcohol into Estonia and no later than upon transfer thereof.
At the request of the consignee, ETCB issues a written confirmation on the payment of excise duty or application of exemption from excise duty, based on which the consignor can apply for the refund of the excise duty already paid in another member state.
Receipt of alcohol in excise warehouse
The excise suspension arrangement is applied on alcohol released for consumption in another member state and transported to Estonia upon its receipt if the alcohol is received by an excise warehouse keeper in an excise warehouse (clause 26 (1) 21) of the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act).
It is a national exception of Estonia, which in general has not been legislated in other member states.
An excise warehouse keeper as the receiver of alcohol is obligated:
- before the dispatch of alcohol from another member state to notify ETCB of the expected consignment of alcohol (accompanying document profile SAAD2) through SADHES;
- no later than five days after the goods are received to notify ETCB of the receipt of alcohol through SADHES (SAAD2 history → Enter the report of receipt) and upload the SAAD signed by the consignee, which, in the case of discrepancies have been corrected with the real quantities received.
The excise suspension arrangement is applied on alcohol received in an excise warehouse by the excise warehouse keeper and in such a case, tax liability does not arise.
At the request of the excise warehouse keeper, ETCB issues a written confirmation on the payment of excise duty, based on which the consignor can apply for the refund of the excise duty already paid in another member state.
Samples of alcohol
In accordance with the Alcohol Act, a business operator in respect of whom a notice of economic activities has been submitted into the register of economic activities may convey to Estonia alcohol that is not entered in the state register of alcohol if it is:
- a product sample which is to be entered in the state register of alcohol;
- a product sample for performing analyses;
- alcohol for examination and presentation to third persons; whereas, the total weight of the consignment of goods and transport packaging thereof shall not exceed 20 kg.
Within the meaning of the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act, the receipt of samples is a regular receipt of goods released for consumption in another member state and conveyed into Estonia for commercial purposes with the following specifications:
- the purpose of the use of alcohol has to be indicated in the accompanying document SAAD;
- samples imported for making an entry in the state register of alcohol or making analyses by an authorised laboratory are not subject to revenue stamping;
- samples, which are submitted to an authorised Estonian laboratory for making analyses in relation with the entry of alcohol in the state register of alcohol, are exempt from excise duty.