Excise tax

Excise tax is added to the price of certain goods on top of VAT. It is paid by the producer or the importer and ultimately passes into the price for the buyer. The tax has two purposes: to raise budget revenue and to curb consumption of certain goods. In Russia, the list of excisable goods and the rates are set by Chapter 22 of the Tax Code.

Which goods are excisable

Typically these are alcohol and alcohol-containing products, tobacco and nicotine-containing products, fuels and oils, passenger cars and motorcycles. The exact rate depends on the characteristics of the goods: alcohol strength, engine power, type of fuel.

Types of rates

• Specific: a fixed amount per unit, for example per liter or per thousand pieces.
• Ad valorem: a percentage of the value.
• Combined: a mix of both.

Excise tax on imports

On import, excise tax is paid at customs together with the duty and VAT. It increases the base for import VAT: the tax is calculated on the sum of the customs value, the duty and the excise tax. Many excisable goods must carry an excise stamp or a digital marking code before sale. Goods without it cannot be sold.

What to watch for

A wrong TN VED code or an error in the characteristics of the goods changes the rate. The data in the contract, the invoice and the customs declaration must match. Certain customs procedures, such as processing or re-export, have their own rules for exemption from excise tax.

Excise tax is paid in Russia in roubles, separately from the payment to the supplier. Only the payment of the invoice abroad goes through the agent. This is a general overview. Taxes on your delivery are calculated by an accountant or a customs representative.