Assistance with excise duties and tax warehouses in Romania

Excise Tax Compliance – Legal Assistance for Businesses in Romania

For companies involved in the production or import of sensitive products such as alcohol, tobacco, or fuels, managing excise duties is a crucial aspect of their business operations. According to Article 432 of the Fiscal Code, all economic operators handling excisable products are required to accept inspections by competent authorities to ensure compliance with applicable regulations. Given this requirement, it is essential to ensure your operations adhere to legal standards in advance.

At Blaj Law, we provide complete and personalized solutions regarding excise tax obligations, leveraging both in-depth knowledge of tax regimes and extensive practical experience.

Understanding Excise Duties in Romania

Excise duties are special taxes imposed directly or indirectly on specific product categories deemed sensitive from an economic, social, or public health perspective. According to the Fiscal Code, excise duties apply to harmonized products such as alcohol and alcoholic beverages, certain types of processed tobacco, and specific energy products and electricity.

The introduction of harmonized excise duties aims to create a uniform tax framework within the European Union, preventing unfair competition and facilitating cross-border trade by eliminating tariff disparities. For example, a company importing alcoholic beverages into Romania must pay excise duties according to the EU-wide harmonized regime, ensuring standardized rates across member states.

Non-harmonized excise duties, on the other hand, allow individual EU member states to apply additional taxes based on national fiscal policies, adapting to their unique economic and social contexts. These excise duties typically apply to products with a lower risk potential, such as tobacco-containing products intended for inhalation without combustion, nicotine-based liquids, or sugar-sweetened beverages (as defined in Article 439 of the Fiscal Code).

When Are Excise Duties Applicable in Romania?

Products become subject to excise duties at the time of production within the EU or upon importation. The excise duty liability arises when the products are released for consumption. The party responsible for paying the excise duties may include:

• The authorized warehouse keeper
• The producer of excisable goods
• The registered consignee
• The registered consignor
• The individual or entity storing or holding excisable products
• The person responsible for releasing the products for consumption

Excise taxpayers must ensure full compliance with documentation, tax declarations, and excise duty payments to avoid penalties, additional costs, or legal issues.

Establishing an Excise Warehouse in Romania

Excise warehouses are authorized locations where excisable products can be stored, processed, produced, received, or shipped under a suspension regime, delaying the payment of excise duties until the products are released for sale.

To obtain authorization as an excise warehouse, applicants must meet the following conditions:

• The site must be used exclusively for handling excisable products under a tax suspension regime.
• The facility must be designed and equipped to prevent the unauthorized removal of excisable goods.
• The site must not be used for retail sales, except for explicitly permitted cases under Article 362(6) of the Fiscal Code.
• For individuals applying as authorized warehouse keepers, they must not have legal incapacity, criminal convictions, or suspended penalties under Article 364(1)(d) of the Fiscal Code.
• For legal entities, neither the entity nor its administrators may have criminal convictions or suspended sentences for relevant offenses.
• The applicant must not have outstanding tax liabilities.

How Blaj Law Can Assist You

Our team of tax law experts combines legal expertise with in-depth knowledge of excise tax regulations. Our services include:

• Regulatory consultation and legal interpretation – Providing a clear understanding of excise tax requirements and their impact on your business.
• Strategic tax optimization – Identifying opportunities to minimize excise tax costs while maintaining full compliance.
• Representation and support in dealings with tax authorities – Handling all verification procedures and communications with tax authorities.
• Assistance in obtaining excise warehouse authorizations – Managing the entire application and compliance process.

If your business is engaged in activities subject to excise duties, it is essential to remain compliant and avoid penalties or tax disputes. Contact Blaj Law for expert guidance on excise tax management and legal representation.