- Since July 1, 2022, substitutes for manufactured tobacco have been subject to tobacco tax. However, trade in untaxed “old goods” was allowed until February 12, 2023. These untaxed goods were those already in circulation before July 1, 2022. To sell these old goods after February 12, 2023, they would need to be taxed. Failure to do so would result in the tobacco tax being due as of February 13, 2023. The customs authorities conducted inspections at tobacco retailers’ premises and confiscated any goods found without tax stamps. They also initiated criminal proceedings for tax fraud.
- In a specific case, a tobacco retailer applied for the suspension of execution of a tobacco tax assessment issued against him. Customs officials had inspected the retailer’s premises on February 15, 2023, and seized a significant quantity of substitutes. The main customs office assessed the tobacco tax on the seized substitutes. The retailer appealed the decision and applied for suspension of execution. The Fiscal Court of Düsseldorf expressed doubts about the legality of the assessment and suspended its execution. As a result, the retailer is not required to pay the tobacco tax pending the conclusion of the appeal proceedings.
- The court’s decision also addressed the interpretation of the provision regarding when tax is incurred. The court questioned whether the provision applied to all goods subject to tobacco tax or only to goods that have already been taxed but not yet taxed again. The customs authorities argued for a broad interpretation, while the court considered a narrower interpretation. The court concluded that substitutes for manufactured tobacco were not subject to taxation before July 1, 2022, and there is no provision for subsequent taxation of old goods that have already been released for consumption. Therefore, the court suggested that the provision may only apply in cases where it is unclear how tax should be determined.
Source KMLZ
