Page 78 - Drinks Industry - 14 Jan 2016
P. 78
CONTENTS
STAGE 1
e) Route to Market
Continued
Understanding VAT & Excise Irish Whiskey Tax Example:
Spirits Example If we take a 70cl bottle of whiskey costing
€24.99 at retail. The tax elements of this
• €42.57 excise duty rate per litre of pure price are as follows:
alcohol in spirits.
• VAT at 23% = €4.67 + Duty on 40% abv
• Therefore 1 litre Bottle of Spirits at 40% abv spirit = €11.92
will generate €17.02 in excise duty.
• Total of €16.59 or 66.4% of the price
• VAT is then calculated at 23%. of a bottle of whiskey.
Beer Example
• Exceeding 0.5% vol but not 1.2% vol = 0.00
• Exceeding 1.2% vol but not
2.8% vol = €11.27 per hectolitre
percent of alcohol in the beer
• Exceeding 2.8% abv will generate €22.55
per hectolitre percent of alcohol in the beer
NOTE - Irish Craft Brewers beneit from a 50% Duty relief from
Revenue based on maximum beer production 30,000 hectolitres
SOURCE: www.revenue.ie and www.abi.ie
78
STAGE 1
e) Route to Market
Continued
Understanding VAT & Excise Irish Whiskey Tax Example:
Spirits Example If we take a 70cl bottle of whiskey costing
€24.99 at retail. The tax elements of this
• €42.57 excise duty rate per litre of pure price are as follows:
alcohol in spirits.
• VAT at 23% = €4.67 + Duty on 40% abv
• Therefore 1 litre Bottle of Spirits at 40% abv spirit = €11.92
will generate €17.02 in excise duty.
• Total of €16.59 or 66.4% of the price
• VAT is then calculated at 23%. of a bottle of whiskey.
Beer Example
• Exceeding 0.5% vol but not 1.2% vol = 0.00
• Exceeding 1.2% vol but not
2.8% vol = €11.27 per hectolitre
percent of alcohol in the beer
• Exceeding 2.8% abv will generate €22.55
per hectolitre percent of alcohol in the beer
NOTE - Irish Craft Brewers beneit from a 50% Duty relief from
Revenue based on maximum beer production 30,000 hectolitres
SOURCE: www.revenue.ie and www.abi.ie
78
