- Rum, an iconic drink from the French West Indies, is subject to a specific tax regime in France
- There is a significant difference in excise rates between mainland France and the overseas territories
- The definition of rum and traditional overseas rum is outlined in EU regulation 2019/787
- Traditional rum produced in Martinique, Guadeloupe, Reunion, and Guyana benefits from specific quotas and tax schemes
- The economic quota regulates annual exports of traditional rum from overseas territories to mainland France
- The fiscal quota allows for a special excise rate on traditional rum from overseas departments consumed in mainland France
- The alignment of overseas rum taxation with mainland France began in 2020 to gradually reach the same rate over six years
- Initially, tax measures were implemented to support the sugar-cane-rum industry in overseas territories due to specific economic constraints
- The EU authorized France to apply a reduced tax rate on traditional rum produced in overseas territories to address production cost challenges.
Source: eurotax.fr
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
