Change in the movement of excise goods

Indirect Tax Alert, June 2022, Issue 3

Change to the procedure for the movement of excise goods outside duty suspension for business purposes from 2023

As of 13 February 2023, some entities that trade with excise goods will face significant changes. The amendment changes the procedure for the transport of alcoholic beverages, tobacco products and mineral oil which have been released to free circulation in one Member State and are moved to Slovakia for business purposes.

The transport of excise goods outside duty suspension will be fundamentally changed – the process will be fully electronic and will work similarly as for goods transported in the tax suspension regime which are administrated via EMCS. The old three-part accompanying simplified paper documents will be replaced by a simplified electronic document and the movement of goods will be monitored in an electronic system – sending of the electronic document to the Customs Office, assignment of a unique reference code, informing the consignor´s / consignee´s Customs Office during the entire transport.

The change will also affect other areas, such as tax refund procedures by customs and registration.

The amendment introduces two types of taxpayers – approved sender and approved recipient. Taxpayers who wish to continue trading in alcoholic beverages, tobacco products or mineral oils subject to the new regulation must register with the relevant Customs office. Until now, this activity has not been subject to formal registration.

Only registered entities – approved sender and approved recipient – will be authorized to transport excise goods released for tax free circulation by a simplified electronic document in the electronic transport system in Slovakia and in the EU.

If taxpayers wish to start using the new electronic system as of 13 February 2023, they must request registration by 31 December 2022.

What does this mean?

Following the changes, it will be necessary to request registration in advance and set up an internal mechanism / systems to fulfil obligations vis-a-vis the Customs Office. Should you require any assistance with this, please don’t hesitate to contact us.