Message 001
Communication from the Commission - TRIS/(2023) 2270
Directive (EU) 2015/1535
Notification: 2023/0470/BG
Notification of a draft text from a Member State
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Does not open the delays - N'ouvre pas de délai - Kein Fristbeginn - Не се предвижда период на прекъсване - Nezahajuje prodlení - Fristerne indledes ikke - Καμμία έναρξη προθεσμίας - No abre el plazo - Viivituste perioodi ei avata - Määräaika ei ala tästä - Ne otvara razdoblje kašnjenja - Nem nyitja meg a késéseket - Non fa decorrere la mora - Atidėjimai nepradedami - Atlikšanas laikposms nesākas - Ma jiftaħx il-perijodi ta’ dewmien - Geen termijnbegin - Nie otwiera opóźnień - Não inicia o prazo - Nu deschide perioadele de stagnare - Nezačína oneskorenia - Ne uvaja zamud - Inleder ingen frist - Ní osclaíonn sé na moilleanna
MSG: 20232270.EN
1. MSG 001 IND 2023 0470 BG EN 28-07-2023 BG NOTIF
2. Bulgaria
3A. Министерство на икономиката и индустрията
Дирекция "Техническа хармонизация"
ул. "Славянска" № 8, 1052 София
Tel.: +359 2 940 7336; +359 2 940 7522; +359 2 940 7480
FAX: +359 2 987 8952
e-mail: infopointBG@mi.government.bg
3B. Министерство на финансите
ул. ”Г.С.Раковски” № 102, София - 1040
Tel.: +359 2 9859 2851
FAX: +359 2 9859 2852
E-mail: taxpolicy@minfin.bg
4. 2023/0470/BG - X60M - Tobacco
5. 1. Bill on the State Budget of the Republic of Bulgaria for 2023 (No 49-302-01-44);
1.1. Excise and Tax Warehouses Act – § 25 of the Transitional and Final Provisions of the Bill on the State Budget of the Republic of Bulgaria for 2023
6. E-cigarette liquid, whether or not it contains nicotine
Nicotine-containing tobacco substitutes
7.
8. Proposal to introduce excise duty on nicotine-free e-cigarette liquids and nicotine-containing tobacco substitutes:
Up to this moment the E-cigarette liquids, whether containing nicotine or nicotine-containing tobacco substitutes, are not regulated currently under the excise legislation. Member States' practice shows that Croatia, Cyprus, Estonia, Finland, Italy, Latvia, Lithuania and Poland tax the liquid intended for consumption in the e-cigarette, regardless of whether it contains nicotine.
In order to avoid different tax treatment of e-cigarette liquids
depending on the nicotine content, it is proposed to extend the scope of
the excise goods with nicotine-free e-cigarette liquids and
nicotine-containing tobacco substitutes, which will be subject to the rules of
the tobacco products.
A definition of the phrase “nicotine-containing tobacco substitutes” is proposed,
according to which these are nicotine products consisting wholly or partly of powder,
paste/gel particles or a combination of these forms, including in packages in
the form of packets (pouches) that do not contain tobacco, but contain nicotine,
intended for the introduction of nicotine into the human body and which are not intended
for medical purposes. The definition introduced will be applicable for the purposes of the excise
legislation in view of the extended scope of tobacco products with regard to taxation
with an excise duty on this type of new modern products intended to replace those offered on
the domestic market of conventional tobacco products.
In order to reduce the administrative burden on persons who exempt for
the consumption of nicotine-containing tobacco substitutes on the territory of the country
and the e-cigarette liquids, whether or not they contain nicotine, is intended
not to require a registered price for their sale on the domestic market under
the Regulation on the conditions and procedure for registering the prices of the tobacco products. On
the other hand, this circumstance shall not exempt the persons, who
manufacture, import or bring into the territory of the country this type of product, to
affix an excise duty band on their consumer packaging.
Considering the need for technological time to align the economic
operators in accordance with the legal requirements, a transitional period of up to
31 October 2023 shall be foreseen, during which those products are released for consumption without an excise stamp affixed on their consumer packaging. On release for consumption of tobacco substitutes containing nicotine and e-cigarette liquids,
regardless of whether they contain nicotine, the excise duty due shall be paid.
The order and time limits within which the economic operators, carrying out activities with the new
excise products, should bring their activities in line with the requirements of
of the Bill are set out in the Appendix to § 6c, new paragraphs 4 to 9 of the Transitional and
the Final provisions of the Bill.
9. The Transitional and Final Provisions of the Bill on the State Budget of the Republic of Bulgaria for 2023
§ 25. In the Excise and Tax Warehouses Act (Published in SG issue No 91 of 2005; amended and supplemented by SG issue No. 105 of 2005, issues No. 30, 34, 63, 80, 81, 105 and 108 of 2006, issue No. 31, 53, 108 and 109 of 2007, issue No. 36 and 106 of 2008, issues No. 6, 24, 44, and 95 of 2009, issue No. 55 and 94 of 2010, issues No. 19, 35, 82, and 99 of 2011, issue No. 29, 54 and 94 of 2012, issue No. 15, 101 and 109 of 2013, issue No. 1 and 105 of 2014, issues No. 30, 92 and 95 of 2015, issue No. 45, 58, 95, and 97 of 2016, issue No. 9, 58, 63, 92, 97 and 103 of 2017, issue No. 24, 62, 65, 98 and 103 of 2018, issue No. 7, 17, 33, 96 and 100 of 2019, issue No. 9, 14, 18, 28, 44, 65 and 104 of 2020, issue No. 77 of 2021, issues No. 12, 42, 52, 100 and 102 of 2022, issue No. 8 and 54 of 2023:
1. In Article 4(6), a third sentence shall be inserted: “For nicotine-containing tobacco substitutes and e-cigarette liquids, regardless of whether they contain nicotine, a sales price is not required to be indicated on the consumer package.”
2. In Article 12b:
a) in paragraph 1, the words “containing nicotine” shall be replaced by “regardless of whether it contains nicotine, for the purposes of this Act”.
b) new paragraph 3 shall be inserted:
“(3) “The nicotine-free e-cigarette liquid” means a liquid used by inhalation of vapours resulting from heating without combustion, and intended for use, with an electronic cigarette, which is a device that can be used to consume nicotine-free vapours by means of a mouthpiece, or a component of that article, including cartridge and container, and the device without cartridge or container. E-cigarettes can be single-use or reusable via a refillable container and reservoir, or refillable via single-use cartridges A nicotine-free e-cigarette refill container is a container of nicotine-free liquid that can be used to refill an e-cigarette.”
3. In Chapter Two, Section II, Article 12c shall be inserted:
“Article 12c (1) For the purposes of this Act, tobacco substitutes containing nicotine shall be deemed to be tobacco products.”
(2) Tobacco substitutes containing nicotine are nicotine products composed entirely or partially of powder, particles of paste/gel, or other substance, or a combination of these forms, including in packages in the form of packets (pouches) that do not contain tobacco, but contain nicotine, intended to introduce nicotine into the human body and which are not intended for medical purposes.”
4. In Article 21(1), sub-paragraph 17 shall be inserted:
“17. tobacco products within the meaning of Articles 12b and 12c intended for another Member State.”
5. In Article 24a:
a) in paragraph 5, item 11 shall be inserted:
“11. information on the specific purpose and use of the energy products falling within CN codes 2707, 2710 and/or 2902 contained in the final product, irrespective of their quantity, as well as information on equivalent products where a request has been made pursuant to Article 24(2)(4)”;
B) in paragraph 6, the following sub-paragraph 14 shall be inserted:
“14. documents proving the information referred to in paragraph 5(11) in respect of the final product.”
6. In Article 29:
a) in paragraph 3:
aa) in sub-paragraph 2, the words “containing” are replaced by “regardless of whether it contains”;
bb) sub-paragraph 3 shall be inserted:
“3. tobacco substitute containing nicotine is the amount of substance, regardless of the form, measured in kilograms.”;
b) in paragraph 4, sub-paragraph 6 after the word “registered” the expression “for cigarettes with a valid excise duty band affixed” shall be inserted.
c) the following paragraph 5 shall be inserted:
“(5) For tobacco substitutes containing nicotine and liquids for e-cigarettes, regardless of whether they contain nicotine, no registered price is required for sale on the territory of the country.”
7. In Article 38:
a) Paragraph 3 shall be amended to read as follows:
“(3) The excise rate for e-cigarette liquid, regardless of whether it contains nicotine, shall be as follows:
1. BGN 0,30 per millilitre as of 1-st of August 2023;
2. BGN 0,35 per millilitre as of 1-st of January 2024;
3. BGN 0,40 per millilitre as of 1-st of January 2025;
4. BGN 0,45 per millilitre as of 1-st of January 2026.’
b) new paragraph 4 shall be inserted:
“(4) The excise rate for tobacco substitutes containing nicotine shall be as follows:
1. BGN 90 per kilogram as of 1-st of August 2023;
2. BGN 95 per kilogramas of 1-st of January 2024;
3. BGN 105 per kilogram as of 1-st of January 2025;
4. BGN 115 per kilogram as of 1-st of January 2026.’
8. In Chapter Four, Section IV, the following Article 64b shall be inserted:
“Article 64b. No excise duty band shall be affixed to the consumer package when released for consumption from a tax warehouse of:
1. Bottled alcoholic beverages falling within CN code 2208 and having an alcoholic strength by volume equal to or exceeding 15% in volume which are transported for commercial purposes to the territory of another Member State under the cover of an electronic simplified administrative document;
2. Tobacco products referred to in Articles 12b and 12c which are transported for commercial purposes to the territory of another Member State with the issue of a registered excise duty document and subject to the provisions of Article 86(5) and (6).”
9. In Article 82f, paragraph 10 shall be amended to read as follows:
“(10) The security under par. 9 shall be furnished at one hundred per cent of the amount of the excise duty payable on the average monthly quantity of goods received at the rate set out in Chapter Three, Section IV.”
10. In Article 86:
A) in paragraphs 5 and 6, after the words “Article 21(1)(13)”, the words “and 17” shall be added;
b) New paragraphs 8 and 9 shall be inserted:
“(8) Where the certified consignor is a licensed warehouse-keeper and the goods destined for another Member State are released for consumption on their departure from the tax warehouse and provided the report of receipt of the excise goods released for consumption is registered in the computerised system within the time limit for lodging the excise duty declaration, a credit note shall be issued to the registered electronic excise duty document stating the reason for the undue excise duty and shall be included in the tax period of the registered electronic excise duty document issued.
(9) Where the certified consignor is a licensed warehouse-keeper and the goods destined for another Member State are released for consumption on their departure from the tax warehouse, and provided that the report of receipt of the excise goods released for consumption is registered in the computerised system after the time limit referred to in paragraph 8, but prior to the submission of the excise duty declaration for the following tax period, a credit note shall be issued to the registered electronic excise duty document, stating the reason for undue excise duty and shall be included in the period following the tax period of the registered electronic excise duty document issued.”
11. In the Transitional and Final provisions:
a) paragraphs 6a and 6b shall be repealed.
b) in § 6c new paragraphs 4-9:shall be inserted:
“(4) Persons who manufacture nicotine-free e-cigarette liquids and/or tobacco substitutes containing nicotine may continue their activities provided that they submit a written request for a tax warehouse management licence under this Act by 31 August 2023. In this case, the persons shall continue their activities until the Director of the Customs Agency has given a decision, but not later than 31 October 2023, subject to the provisions on the obligations of the licensed warehouse-keepers.
(5) By 31 January 2024, nicotine-free e-cigarette liquids and/or nicotine-containing tobacco substitutes may be released for consumption within the meaning of Article 20(2) without an excise duty band affixed to the consumer package by:
1. the persons referred to in paragraph 4;
2. the licensed warehouse-keepers, whose tax warehouse licence also includes nicotine-free e-cigarette liquids and/or tobacco substitutes containing nicotine;
3. persons who import into the territory of the country liquids for nicotine-free e-cigarettes and/or substitutes of nicotine-containing tobacco;
4. persons, who bring into the territory of the country liquids for nicotine-free e-cigarettes and/or substitutes of nicotine-containing tobacco.
(6) Persons who sell, store and market nicotine-free e-cigarette liquids and/or tobacco substitutes containing nicotine may continue their activities, provided that they submit a written request for a tobacco products marketing permit under this Act by 31 August 2023. In that case, the persons shall continue their activities at the places referred to in Article 90b until the entry into force of the relevant act of the Director of the Territorial Directorate, but not later than 31 October 2023.
(7) The persons referred to in paragraph 6 shall also attach to the request an inventory of nicotine-free e-cigarette liquids and/or nicotine-containing tobacco substitutes available on the premises concerned as of 1 August 2023.
(8) Persons who hold a valid tobacco products marketing permit and who sell, store and market nicotine-free e-cigarette liquids and/or nicotine-containing tobacco substitutes may continue their activities, provided that they submit an inventory of the nicotine-free e-cigarette liquids and/or nicotine-containing tobacco substitutes available at the premises as of 1 August 2023. The inventory shall be submitted by 31 August 2023 to the Director of the Territorial Directorate where the site is located.
(9) Persons referred to in paragraphs 6 and 8 may realize in the commercial network nicotine-free e-cigarette liquids and/or nicotine-containing tobacco substitutes without an excise duty band affixed by 30 April 2024. After April 30, 2024, e-liquids without nicotine and/or tobacco substitutes containing nicotine must be affixed with an excise duty band on the consumer package.”
§ 43. This Bill shall enter into force on 1 January 2023, with the exception of:
1. Paragraph 1, paragraphs 3 and 5, § 23(3) to (7), § 25 and 26, which shall enter into force on 1 August 2023.
10. References to basic texts: There is no main text
11. No
12.
13. No
14. Yes
15. No
16.
TBT aspects: No
SPS aspects: No
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European Commission
Contact point Directive (EU) 2015/1535
email: grow-dir2015-1535-central@ec.europa.eu
