Germany levies several excise duties side by side on alcoholic beverages. They follow the same basic rules of the Excise Directive (EU) 2020/262. The duty is suspended while the goods are held in a tax warehouse or moved under duty suspension, and it arises when they are released for consumption. Responsibility lies with the Main Customs Offices (Hauptzollämter).
Still wine is not taxed in Germany. There is no German duty rate for wine at all; the minimum rate under EU law has been zero since 1993. Duty-free does not mean free of obligations, however. Commercial movements of wine from, to or via other Member States are subject to tax supervision under Sections 32 and 33 of the Sparkling Wine and Intermediate Products Tax Act (Schaumwein- und Zwischenerzeugnissteuergesetz, SchaumwZwStG), with simplifications for small producers below 1,000 hectolitres a year.
The individual duties
- Alcohol duty: Under the Alcohol Tax Act (Alkoholsteuergesetz, AlkStG), spirits and ethanol are taxed according to the quantity of pure alcohol. The standard rate is EUR 1,303 per hectolitre of pure alcohol (Section 2 AlkStG).
- Beer duty: It depends on the original gravity in degrees Plato and amounts to EUR 0.787 per hectolitre and degree Plato. Legally and economically independent breweries with a total annual output below 200,000 hectolitres pay graduated reduced rates, from 75 per cent of the standard rate at 40,000 hectolitres down to 50 per cent at 5,000 hectolitres and below.
- Sparkling wine duty: EUR 136 per hectolitre; for sparkling wine below 6 per cent by volume EUR 51 per hectolitre (Section 2 SchaumwZwStG).
- Intermediate products duty: For products such as port, sherry or vermouth, Section 30 SchaumwZwStG sets EUR 153 per hectolitre above 15 per cent by volume, EUR 102 up to 15 per cent by volume and EUR 136 for products up to 15 per cent by volume presented as sparkling wine.
- Alcopop tax: A special tax on sweet mixed drinks containing spirits, EUR 5,550 per hectolitre of pure alcohol, in addition to alcohol duty.
The draft Budget Accompanying Act (Haushaltsbegleitgesetz) provides for an increase of 20 per cent each in alcohol duty, sparkling wine duty, intermediate products duty and alcopop tax from 1 January 2027. Beer duty would not be affected. The legislative procedure is still ongoing.
Tax warehouse, duty suspension and EMCS
Anyone who produces, processes or stores alcohol products without duty paid needs an authorisation as authorised warehousekeeper. The Hauptzollamt examines tax reliability and as a rule requires a guarantee. Movements under duty suspension are only possible with an electronic administrative document in the EMCS system. Since February 2023, commercial deliveries of duty-paid goods between Member States have also run through EMCS, with a simplified administrative document between certified consignor and certified consignee (Section 24 AlkStG). Anyone who regularly receives such goods needs this status and a separate authorisation for it (Section 24a AlkStG).
Duty-free use
Alcohol that is not drunk can be exempt from duty under Section 27 AlkStG. Undenatured, this applies for example to the manufacture of medicinal products, vinegar and flavourings; denatured, to goods that are neither medicinal products nor foodstuffs, such as cosmetics and cleaning agents, and to heating and cleaning purposes. Whether denatured or undenatured alcohol may be used therefore depends on the intended use. Anyone wishing to use alcohol duty-free needs an authorisation from the Hauptzollamt under Section 28 AlkStG, which defines the purpose precisely. Completely denatured alcohol is exempt from this and can be placed on the market freely. If the actual use departs from the authorisation, the required denaturing is missing or the whereabouts cannot be established, the duty arises immediately for the user.
Supplies from the EU and third countries, distance selling
For imports from third countries, excise duty arises under Section 22 AlkStG on release for consumption, unless the goods go directly into a tax warehouse under duty suspension. For supplies from other Member States, it depends on whether the goods travel under duty suspension or already duty-paid. Foreign excise duty is not credited in Germany; at most it can be refunded in the Member State of dispatch.
Where traders from other Member States sell to private customers in Germany, this is distance selling and German duty arises. The distance seller needs an authorisation from the Hauptzollamt under Section 25 AlkStG, must provide a guarantee, keep records and notify every single delivery in advance. It can appoint a tax representative established in the tax territory, who in turn needs an authorisation. Conversely, German online shops selling to private customers in other EU Member States must notify their deliveries to the Hauptzollamt in advance and meet the obligations in the country of destination.
Small distillers
Since the end of the spirits monopoly in 2018, the Alcohol Tax Act has applied uniformly to distilleries. Distilleries in which production is estimated for tax purposes (Abfindungsbrennereien) and owners of raw materials (Stoffbesitzer) pay a reduced rate of EUR 1,022 per hectolitre of pure alcohol within their permitted annual output; there, the duty is calculated on a flat-rate basis from the quantity of raw materials and official yield rates. Sealed distilleries (Verschlussbrennereien) with an annual output of up to 4 hectolitres of pure alcohol pay EUR 730. Both reductions are limited to the producer and require that the distillery is legally and economically independent and not a licensee. The maximum quantities of 3 hectolitres of pure alcohol for Abfindungsbrennereien (Section 9 AlkStG) and 0.5 hectolitres, i.e. 50 litres, for owners of raw materials (Section 11 AlkStG), as well as the notification deadlines before each distillation, must be observed precisely. Anyone who exceeds them loses the status.
Typical mistakes, inspections and criminal law
- Missing or expired authorisations: A new storage location, a new product or a changed intended use is often not covered by the existing authorisation.
- Undischarged administrative documents: Without a report of receipt, or where quantities are missing, the duty arises for the consignor.
- Losses and stock differences: Losses are exempt from duty only within narrow limits and must be documented.
- Incorrect classification: Whether a mixed drink is beer, sparkling wine, an intermediate product or an alcopop determines the duty. The basis is the tariff number.
The Hauptzollamt monitors tax warehouses and holders of authorisations on an ongoing basis and carries out tax supervision measures and external audits. If there are indications of deliberately false statements, proceedings for tax evasion under Section 370 of the Fiscal Code (Abgabenordnung, AO) may follow. Anyone who buys or sells goods on which duty has not been paid risks proceedings for handling tax-evaded goods (Steuerhehlerei) under Section 374 AO. Recklessness can be punished as an administrative offence.
How to proceed
- Assign the products. Determine the type of duty and the rate for each product.
- Clarify your status. Check whether you need to be an authorised warehousekeeper, registered or certified consignee, distance seller or holder of an authorisation for duty-free use.
- Reconcile EMCS and stocks. Check open movements regularly and document losses.
- Review distance selling. If you sell to private customers in other Member States, clarify beforehand the notification obligations here and the obligations in the country of destination.
- Correct errors. If you identify discrepancies, they should be resolved with the Hauptzollamt promptly.
Further information on advice in excise duty matters can be found under Tax. On tobacco duty, see Tobacco duty: obligations for businesses.