On 28 December 2022, the German Customs sent a letter informing local e-cigarette associations and economic operators of the re-taxation of alternatives to tobacco products marketed before 1 July 2022 (i.e., "e-cigarettes") : The e-cigarettes that fail to pay the tax obligation are required to return to the tax warehouse, and the person who has the right to obtain the tax stamp (manufacturer, importer or buyer for commercial purposes) carries out stamp stamp pasting to fulfill the retroactive tax obligation.

This section describes the obligations that the product owner must fulfill as soon as possible.

"Used goods" are taxed
a. According to Article 1b of the Tobacco Tax Act (TabStG), e-cigarettes shall be subject to the tax provisions of the TabStG and its implementing Regulations;

b. As of February 13, 2023, e-cigarettes (hereinafter referred to as "used goods") that have been on the market before July 1, 2022 and all e-cigarettes with invalid tax numbers in the taxing territory will be taxed at the e-cigarette additional rate.

Tax payment process
a. The Trader agrees that the owner of the tax warehouse selected by the Trader is entitled to obtain the re-taxed stamp on used goods. The owner of the tax warehouse must already have the trader's tax number and assume all rights and obligations after tax;

b. Used goods must be returned to the Tax warehouse by February 12, 2023 and must be entered in all records (tax warehouse book and tax number book) of the Tax warehouse owner with "Used Goods after Tax" marked in the "Remarks" field.

Pasting requirement
a. If necessary, the retail packaging shall be improved in the tax warehouse, and the tax number can be used for subsequent taxation only if the retail packaging meets the TabStG requirements;

b. Retail packaging with more than one opening shall not be used, and if the retail packaging has a second opening, adequate repairs shall be made to the retail packaging at that opening, such as large area, non-removable adhesive or securing by attaching non-removable safety tape;

c. Stamp stamp shall be affixed to the sole opening of the retail package and the invalid stamp stamp shall be removed without obvious damage to stamp stamp or package.

Tax number acquisition
a. The tax warehouse owner obtains the tax number through the "Vape Tax Number Return No. 1619", which is specifically for the tax signature manually filled out after tax for the vape;

Customs Online - Technical Notice - Subsequent Taxation of Tobacco Product Substitutes (Used Goods) (zoll.de)

b. Send the completed application form by post or electronically scanned copy to the following address or email address:

Add. : Hauptzollamt Bielefeld,

Sachgebiet B,

Arbeitsgebiet Tabaksteuer und Steuerzeichenstelle

Postfach 32 40

32232 Bunde

Email: poststelle.steuerzeichen-buende@zoll.bund.de

c. If the tax cannot be reimposed, individual traders have until 13 February 2023 to destroy their old goods.

E-cigarette duty
According to TabStG, the tax rate on e-cigarettes will apply at the following time points:

a. Eur 0.16 per ml from 1 July 2022 to 31 December 2023;

b. Eur 0.20 per ml from 1 January 2024 to 31 December 2024;

c. Eur 0.26 per ml from 1 January 2025 to 31 December 2025;

d. Eur 0.32 per milliliter from 1 January 2026.

It is reported that many mainstream import markets of e-cigarettes have recently strengthened the supervision of circulation channels to protect the normal order of the market. It is suggested that relevant enterprises pay attention to the export compliance requirements of target markets.

Lishun Testing has professional e-cigarette compliance services and product testing capabilities, providing you with one-stop e-cigarette testing, certification and notification services.