Beer Brewers Want Consistent Taxation in EU

August 31, 2018 Taxation in EU

Beer brewingBRUSSELS – European beer brewers are calling for a consistent taxation which only considered the ingredients used to brew the beer and not those used after fermentation.

On August 29th the brewery advocacy group Brewers of Europe issued a statement urging the European Commission to reconsider its stance on the taxation of beer brewing, in order to ensure that the rules are consistent with a European Court decision.

Earlier this year, the European Court of justice clarified that it supports the use of the Degrees Plato system instead of ABV when calculating the excise duties on beer.

The ABV system is a measure of the alcohol by volume in a beer, while the Degrees Plato system takes into account the total fermentable sugar used in the production of a beer.

The confirmation was intended to support brewers while also ensuring a harmonization of the tax system.

However, the European Commission has now suggested that it will take the view that all ingredients used in the production of a beer will be considered for taxation, even if the ingredient is added after the fermentation.

The possible end-effect of the stance is that flavoured beers will be taxed at a higher rate than a standard beer, even if they are produced at the same location at the same time.

The Brewers of Europe insists that this tax stance is tantamount to taxing everything used in beer, not just the alcohol, which is against the decision and view of the European Court of justice.