Excise duty

Basic act: The Law on Excise Duty of the Republic of Lithuania (hereinafter referred to as “the Law on Excise Duty”)

Excise duties when alcoholic beverages are delivered to exhibitions in Lithuania from other Member States.

Taxpayers:

  • authorized warehouse keepers;
  • registered consignees;
  • registered consignors;
  • other persons who may be liable to pay the excise duty.

Subject to excise duty:

  • ethyl alcohol and alcoholic beverages;
  • manufactured tobacco;
  • raw tobacco;
  • heated tobacco products;
  • electronic cigarette liquid;
  • energy products;
  • electricity.
  • All other products become subject to excise duty when sold or used as motor fuel or additives.
  • All other hydrocarbons with the exception of peat indicated in Annex 1 of the Law on Excise Duty are subject to excise duty when sold or used as heating fuel.

Tax rates:

Beer is subject to EUR 8.60 rate of excise duty for 1 percent of the actual alcoholic strength by volume fixed per hectoliter of the product.

Wine from fresh grapes and other fermented beverages:

1. wine and other fermented beverages with an actual alcoholic strength by volume (or by fermentation in case of other fermented beverages) not exceeding 8.5% vol. are subject to EUR 93 rate of excise duty per hectoliter of the product;

2. wine from fresh grapes and other fermented beverages not referred to in Article 24(1) of the Law on Excise Duty are subject to EUR 199 rate of excise duty per hectoliter of the product.

Intermediate products:

1. intermediate products with an actual alcoholic strength by volume not exceeding 15% vol. are subject to EUR 216 rate of excise duty per hectoliter of the product;

2. intermediate products with an actual alcoholic strength by volume exceeding 15% vol. are subject to EUR 308 rate of excise duty per hectoliter of the product.

Ethyl alcohol is subject to EUR 2310 rate of excise duty per hectoliter of pure ethyl alcohol.

Cigarettes are taxed at the combined rate of excise duty, consisting of a specific element (EUR 79.6 for 1,000 cigarettes) and a value element (25% of the maximum retail price). However, the combined rate (i.e. the sum of a specific element and a value element) must not be less than EUR 130 per 1,000 cigarettes.

Cigars and cigarillos are subject to EUR 79 rate of excise duty per kilogram of the product.

Smoking tobacco is subject to EUR 104.6 rate of excise duty per kilogram of the product.

Heated tobacco products are subject to EUR 60.2 rate of excise duty per 1000 units of the product.

Electronic cigarette liquid is subject to EUR 0.19 rate of excise duty per milliliter of the liquid.

Raw tobacco is subject to EUR 104.6 rate of excise duty per kilogram of the product.

Unleaded petrol is subject to EUR 466 rate of excise duty per 1,000 liters of the product.

Leaded petrol is subject to EUR 579.24 rate of excise duty per 1,000 liters of the product.

Kerosene  is subject to EUR 330.17 rate of excise duty per 1,000 liters of the product.

Gas oils are subject to EUR 372 rate of excise duty per 1,000 liters of the product.

Heating gas oils (domestic heating fuel) are subject to EUR 21.14 rate of excise duty per 1,000 liters of the product.

Gas oils intended for use in agricultural activities (including aquaculture and commercial fishing in inland waters) for the production of agricultural products are subject to EUR 60 rate of excise duty per 1,000 liters of the product.

Energy products classified under subheadings KN 2710 19 91–2710 19 99 are subject to EUR 372 rate of excise duty per 1,000 liters of the product.

Heating energy products classified under subheadings KN 2710 19 91–2710 19 99 are subject to EUR 21.14 rate of excise duty per 1,000 liters of the product.

Liquid fuel (heavy fuel oils) with characteristics confirmed by the Government of the Republic of Lithuania or an institution authorized by it and Orimulsion are subject to EUR 15.06 rate of excise duty per 1 ton of the product.

Liquid fuel (heavy fuel oil) with characteristics not confirmed by the Government of the Republic of Lithuania or an institution authorized by it are subject to EUR 372 rate of excise duty per 1,000 liters of the product.

Heating liquid fuel (heavy fuel oils) is subject to EUR 21.14 rate of excise duty per 1,000 liters of the product.

Petroleum gas and gaseous hydrocarbons used as fuel (motor fuel), their substitutes and additives are subject to EUR 304.10 rate of excise duty per 1 ton of the product.

Electricity is subject to EUR 1.01 rate of excise duty per megawatt-hour of electricity.

Electricity used for business purposes is subject to EUR 0.52 rate of excise duty per megawatt-hour of electricity.

Coal is subject to EUR 7.53 rate of excise duty per 1 ton of the product.

Coal used for business purposes is subject to EUR 3.77 rate of excise duty per 1 ton of the product.

Coke and lignite are subject to EUR 8.98 rate of excise duty per 1 ton of the product.

Coke and lignite used for business purposes are subject to EUR 4.63 rate of excise duty per 1 ton of the product.

Natural gas used as engine fuel (in machinery) is subject to EUR 23.60 rate of excise duty per megawatt-hour of electricity.

Heating natural gas is subject to EUR 1.08 rate of excise duty per megawatt-hour of electricity.

Heating natural gas used for business purposes is subject to EUR 0.54 rate of excise duty per megawatt-hour of electricity.

Taxable period:

The tax period of an authorized warehouse keeper, registered consignee and registered consignor is a calendar month after which the excise duty return must be submitted by the 15th day of next month.

Persons who are not authorized warehouse keepers, registered consignees or registered consignors must submit the excise duty return no later than within 5 working days from the date of the delivery of goods to the Republic of Lithuania.

Persons liable to pay excise duty pursuant to subparagraphs 4, 5, 8, 10, 11 of paragraph 1 of Article 9 of the Law on Excise Duty must submit the excise duty return no later than the next working day following the date on which the liability arose.

Exemption from excise duty: exemption from excise duty is granted if the excise goods are:

  1. exported or supplied in accordance with Article 19(1)(1) of the Law on Excise Duty;
  2. intended for official activities with Article 19(1)(1) of the Law on Excise Duty;
  3. imported in the personal luggage of a traveler and within the limit of the quantities established by the Government of the Republic of Lithuania which natural persons (travellers) are allowed to bring into the country without excise duty;
  4. supplied to passenger and/or cargo ships and/or aircraft on international routes for refuelling and resupply;
  5. intended for the use by the military units of the countries of the North Atlantic Treaty Organization (NATO) other than the Republic of Lithuania or accompanying civilian personnel;
  6. intended for international organizations recognized in the Republic of Lithuania and the representations of the organizations as well as members of said organizations or representations;
  7. acquired or imported under international treaties;
  8. intended for the use by the armed forces of another Member State or by accompanying civilian personnel, when such forces take part in a defence effort carried out for the implementation of the Union activity under the common security and defence policy;
  9. ethyl alcohol recognized as denatured ethyl alcohol which is granted exemption from excise duty;
  10. beer, wine and other fermented beverages produced by a natural person, provided that these beverages are for personal use only (i.e. not for sale but solely for one's own or family needs);
  11. ethyl alcohol used in pharmaceutical products, veterinary drugs, and ethyl alcohol used for purposes of personal and public health care, pharmaceutical activities, veterinary pharmacy, veterinary practice or for the purpose of carrying out the functions of authorities exercising state control over pharmaceuticals, foodstuffs and veterinary medicines;
  12. ethyl alcohol and alcoholic beverages intended for the production of vinegar;
  13. ethyl alcohol and alcoholic beverages intended for the production of chocolates where the amount of absolute ethyl alcohol used for the production of net 100 kilograms of chocolates does not exceed 8.5 liters;
  14. ethyl alcohol and alcoholic beverages intended for the production of food products and/or production of flavors and their mixtures used for the production of non-alcoholic beverages with an actual alcoholic strength in volume not exceeding 1.2%;
  15. dehydrated ethyl alcohol intended for the production of biofuels  for transport and / or their components in accordance with the procedure laid down in the Law on Renewable Energy of the Republic of Lithuania;
  16. under other cases, where exemption from excise duty is granted or where reduced excise duty is applicable.

Return and payment:

Excise duty must be paid no later than by the deadline for the submission of excise duty returns.

However, in cases where an advance payment of excise duty has been made for the taxable period, the amount of excise duty payable in respect to that tax period is reduced by the amount of the advance payment made.

In cases where the average amount of excise duty payable by the owner or registered consignee of a particular warehouse storing excise goods has been in excess of EUR 15 000 for 3 consecutive past tax periods, advance excise duty payments must be made by the 15th day of the current tax period, starting from the next tax period after the date on which the aforementioned circumstances became apparent. The excise duty advance payment is equal to 1/3 of the total average payable excise duty, which was (or had to be) stated in the tax returns for the 3 preceding tax periods, as set forth.

Other cases - No excise duty is applied if goods are moved from a warehouse to another warehouse under excise duty suspension arrangements. In such case, a movement document must be issued for the excise goods (i.e. electronic Administrative Document or e-AD), indicating that no excise duty has been paid for the goods transported under excise duty suspension arrangements.