Excise duty accounting regarding alcoholic beverages
Read on to learn how you keep excise duties accounts if you produce or import alcoholic beverages.
Important information
In order to report excise duties correctly, the calculation basis must be correct.
Excise duty accounting enables you to find and document the proper calculation basis for the excise duty. You must report the calculation basis in the excise tax return.
Everything to be reported via the excise tax return should therefore be registered in the excise duty accounts.
The duty on alcoholic beverages consists of the following:
- The duty on alcohol
- The beverage packaging tax (basic tax and environmental tax)
The duty on alcohol
Spirits and other alcoholic beverages containing more than 4.7 percent alcohol by volume (ABV):
The basis for the duty (litre x ABV)
x rate
= the duty on alcohol
Other alcoholic beverages containing from 0.7 to 4.7 percent alcohol by volume (ABV):
The basis for the duty (litre)
x rate
= the duty on alcohol
Fermented alcoholic beverages produced by small breweries containing from 3.7 to 4.7 percent ABV
The basis for the duty (litre)
x reduced rate according to tax brackets
= the duty on alcohol
Please note that special rules and rates apply for small breweries.
Beverage packaging tax
The basis for calculating the beverage packaging tax is calculated in number of units.
The beverage packaging tax consists of basic tax and environmental tax and is determined by type of packaging.
The tax is calculated for the primary packaging, meaning the packaging in direct contact with the actual product. Example: the packaging tax for Bag in Box (BiB) products must be calculated for the plastic the beverage is stored in, and not for the cardboard that forms the outer packaging.
Environmental tax
Packaging covered by an approved return scheme is subject to a lower environmental tax rate depending on the return percentage.
Number of units (packaging units)
x tax rate
= environmental tax
Basic tax
Number of units (packaging units)
x tax rate
= basic tax
Example 1: A crate of beer (24 cans), 0.5 litre cans with 4.7 percent alcohol by volume (ABV):
Duty on alcohol
24 cans of beer
x 0.5 litre
x NOK 21.55 (tax rate in 2022)
= NOK 258.60 in alcohol duty
Basic tax
24 cans of beer
x NOK 1.29 (tax rate in 2022)
= NOK 30.96 in basic tax
Environmental tax
24 cans of beer
x NOK 6.28 (tax rate in 2022)
= 150.72 in environmental tax
Example 2: One carton of wine (6 bottles), 0.75 litre with 12 percent alcohol by volume (ABV):
Duty on alcohol
6 bottles
x 0.75 litre
x 12 (ABV)
x NOK 4.82 (duty rate in 2022)
= NOK 260.28 in alcohol duty
Basic tax (single-use packaging)
6 bottles
x NOK 1.29 (tax rate in 2022)
= NOK 7.74 in basic tax
Environmental tax
6 bottles
x NOK 6.28 (tax rate in 2022)
= NOK 37.68 in environmental tax
We recommend that you enter the current rates for excise duties in your excise duty accounts to enable you to calculate excise tax. You can then compare the calculated tax with the amount calculated in your excise tax return.
As a rule, the rates change 1 January every year. The reduced environmental tax rate is determined, amongst other things, by the return percentage calculated by the Norwegian Environment Agency. The adjustment of the reduced tax rate and tax code takes place on 1 July every year.
You’ll find updated rates at:
You must use specific excise duty codes when completing the excise tax return.
We recommend that you enter the excise duty codes in your excise duty accounts to make it easier to report correctly.
Example:
OL 401 is the code for beer from 3.7 up to 4.7 percent ABV
BV 650 is the code for spirits over 22 percent ABV
You’ll find the excise duty codes in the code guide (in Norwegian only).
When reporting excise duties, you must register all types of withdrawals from your approved storage facility for each duty group in the excise tax return. In addition to withdrawals, you must also register return of goods. Net recording where only the excise duty amount due is listed, must not occur.
If you have both duty to be paid and duty you can claim a refund for from the Tax Administration in the same period, you must report these separately in the excise tax return.
Example
In February, you sold 500 litres of beer and received in return 300 litres of beer.
In this case, you must record both the withdrawal of 500 litres and the return of 300 litres. This means you cannot report 200 litres as withdrawal/sale for this period.
You must report exemptions
When you complete your excise tax return, all movement connected with the business’s deliveries/withdrawals must be shown, including those exempt from duty.
If you’ve made an error in an earlier report
You may correct reported excise duty up to 3 years back in time. You do this by submitting a correction notice for the period in which the error occurred.
How to set up excise duty accounts
The excise duty accounts should show an overview of
- your goods
- your stock at the start and end of the month
- input stock and output stock
In the excise duty accounts, you must register all movement of input and output stock subject to excise duties that comes into and goes out of your approved storage facility. You must also register other events such as destruction and breakage.
Help to set it up correctly:
All your goods should have a unique item number. It should include details about the duty types and groups. This will make it easier for you to calculate taxes and duties correctly.
You’ll find the excise duty codes in the code guide (in Norwegian only).
The excise duty accounts must show your stock of goods that are subject to excise duty
- at the start of the period (opening balance – IB)
- at the end of the period (closing balance – UB)
UB = IB + the total input for the period – (minus) the total output for the period.
A new period’s IB is equal to the previous period’s UB. In this context, a “period” is one calendar month. The reason for this is that the tax return for excise duties on alcohol and beverage packaging must be submitted monthly.
Generally, the excise duty accounts must show all movement of goods coming into or being withdrawn from your approved storage facility.
Please note that other events may also have to be registered in the excise duty accounts, for example when the goods are delivered straight to the recipient without having been to your approved storage facility.
Examples of input stock and output stock:
Important information
Examples for input stock you must register in your excise duty accounts:
- Self-produced finished goods
- Imported goods
- Returns
- Duty-free transfers from other registered entities
Examples for when to register output stock in your excise duty accounts:
- Sales
- Withdrawal of goods for samples and tasting
- Destruction of goods approved by the Tax Administration
- Breakage
- Theft
- Shortage
- Exports abroad
- Duty-free transfers from other registered entities
- Withdrawal to own sales outlet
Not all the events mentioned will result in you having to pay excise duties. Some withdrawals from stock are duty-free, for example, destruction and exports abroad. All duty-free withdrawals must be documented and reported with an additional code in the excise tax return. The documentation must be retained as part of your excise duty accounts.
This is how it might look:
Inventory
You must take inventory of goods subject to excise duties at least once per year. If you find discrepancies in the number of goods you counted and the number registered in the excise duty accounts, you must correct the number in your excise duty accounts.
If your inventory shows that you have more goods in stock than what has been registered in the excise duty accounts, you must include the relevant surplus in your excise duty accounts.
If your inventory shows that you have fewer goods in stock than what has been registered in the excise duty accounts, you must generally pay a duty on the difference.
Remember that shortages must be reported using the additional code 99 in the excise tax return.
If your inventory shows both a shortage and surplus of goods, you may be able to set these off against each other. This set-off means that the surplus of some types of goods can reduce the shortage of other goods. If you set off goods, you must register this in your excise duty accounts.
Must have equal duty status
To be able to set off, the goods of which there is a shortage must have equal duty status to the goods of which you have a surplus. Equal duty status for alcoholic beverages means that the goods have the same basis, type and group of excise duty.
If these conditions are met, you may, for example, set off
- one type of beer with 5 percent ABV against another type of beer with 5 percent ABV
- red wine with 12 percent ABV against white wine with 12 percent ABV
- cognac with 40 percent ABV against whisky with 40 percent ABV
Example:
Here the two types of goods can be offset because they have the same duty status.
Take particular note of the following:
If you produce your own goods that are subject to excise duties, you must also keep an overview of your use of raw materials/intermediate goods. Such an overview could, for example, be brew logs. You must also register the correct percent ABV for each batch in the excise duty accounts.
You must make sure that the percent ABV that you have registered for the goods in the excise duty accounts corresponds to the labelling on the packaging/label.
The producer subject to excise duties is the person who owns the product/intermediate goods throughout the entire production process.
If you’re a producer subject to excise duties, you must report and pay excise duties to the Tax Administration. You must also register the goods in separate excise duty accounts.
Example
You brew beer made from your own raw materials, but you rent the production facility, with or without employees, from another producer.
Since you own the product/intermediate goods throughout the entire production process, you’re a producer subject to excise duties. You must then report the excise duty on the beer you make and keep excise duty accounts for this production.
Checklist
This checklist can be useful when keeping excise duty accounts and remind you of things that are important when you produce and/or import alcohol.
You can download the checklist as a PDF, or you can view the items here on our webpage.
Goods subject to excise duties - product information
Did you remember to
- register all the goods subject to excise duty in your excise duty accounts
- update the product number or item number
- update the excise duty code for the product tax in your excise duty accounts
- update the excise duty code for the environmental tax
- update the excise duty code for the basic tax
- register the correct percent ABV in your excise duty accounts
Input stock that must be registered in the excise duty accounts
Did you remember to register
- all self-produced goods that are subject to excise duties
- all imported goods that are subject to excise duties
- all duty-free purchases from other registered entities that are subject to excise duties
- all returns from customers of goods subject to excise duties
- other input, for example, samples received and similar
Output stock that must be registered in the excise duty accounts
Did you remember to register
- all sales subject to excise duties
- all duty-free sales
Did you have
- destruction of goods
- goods used/sold as raw materials or similar in connection with production
- samples
- breakage
- theft
Stocks subject to excise duties
Did you remember to
- take a stock inventory
- reconcile the stock registered in your accounts with the result of the inventory
- archive the inventory list
Excise duties tax return
Did you remember to
- submit the tax return and pay within the deadline
- report the correct additional codes
- obtain/archive the necessary documentation
Permit
- did you make sure the buyer has the correct permit for selling alcohol
Contract tapping and contract production
Did you consider whether you might be subject to excise duties for goods
- produced by others
- bottled by others
Small breweries
- do the requirements for small breweries apply to you
Documentation
You must retain any documentation showing that the entries you made in your excise tax return are correct. This applies to, for example, documentation confirming any right to reduced rates or exemptions.
You do not need to send us documentation on your own accord, but you must be able to provide it upon our request.
You must retain any documentation, excise duty accounts and reconciliations for 10 years. Note that the period of storage is longer according to the Excise Duty Regulations than according to the Bookkeeping and Customs Regulations.
- invoices for purchases and sales
- credit notes
- internal vouchers
- contracts
- payment vouchers
- customs declarations
- shipping documents
- approved applications for destructions
- for transfers not subject to excise duties: confirmation that the recipient is registered for the same duty type
- other documentation of claims for exemption of duties
See also
- Reporting excise duties (excise tax return)
- Register your enterprise as subject to excise duty
- Information about alcoholic beverage tax
- Information about beverage packaging tax
Do you find this to be complicated?
If you’re obliged to keep excise duty accounts, we try to provide guidance at skatteetaten.no. Let us know about any difficulties that you encounter, so we can keep improving our guidance.
Let us know the difficulties you experience in connection with excise duty accounts