In recent days, the Spanish Official Gazette has published several tax reforms introducing new taxes, among them the creation of the Tax on Liquids for Electronic Cigarettes and Tobacco-Related Products.
This new tax was introduced by Law 7/2024 of 20 December and amended by Royal Decree-Law 9/2024 of 23 December, and is configured as an Excise Duty whose purpose is to regulate and tax the manufacture, importation and introduction of liquids for electronic cigarettes, nicotine pouches and other nicotine products other than those included in the objective scope of the Tobacco Products Excise Duty, thus aligning with public health and taxation policies.
Although its entry into force was scheduled for 1 January 2025, Royal Decree-Law 9/2024 has delayed its entry into force to 1 April 2025 in order to ensure a greater time margin for the due assimilation of the obligations that the regulations impose on the taxpayers of this new tax.
Special mention should be made of Duty Free Shops, given that the wording of their definition has been modified to expressly include liquids for electronic cigarettes, nicotine pouches and other nicotine products among the products that are delivered duty free to travelers bound for third countries by these establishments located in airports and ports on the Spanish mainland and the Balearic Islands.
The tax applies to liquids that can be used in electronic cigarettes or vaporizers, regardless of whether they contain nicotine, as well as to nicotine pouches and other nicotine-containing products that are not considered to be medicines. The tax base is determined, in the case of liquids, by volume in milliliters and, in the case of pouches and other nicotine products, by weight in grams, and the following tax rates are established:
- Liquids without nicotine or with 15 mg/ml nicotine or less are taxed at 0,15 €/ml,
- Liquids exceeding 15 mg/ml nicotine are taxed at 0,20 €/ml,
- Pouches and other nicotine products are taxed at a rate of 0,10 €/gr
In line with the way excise duties work, the accrual of this tax shall take place in accordance with the general provisions; however, a new event of accrual is added at the time of receipt of the products in Spanish territory, unless they are covered by a suspensive regime in factories or tax warehouses.
Similarly, in addition to the exemptions applicable to all excise duties, special exemptions are provided limited quantities brought in by travelers, for scientific purposes and/or for deliveries by duty-free shops.
From a business perspective, it is important to consider the following two key obligations:
- During the 30 days following the entry into force of the tax, those storing these products for commercial purposes must submit an informative declaration detailing the type and quantity of these products stored.
- Products stored at the time of entry into force, i.e. during the months of April, May and June 2025 shall require the submission of the corresponding self-assessment between 1 and 20 July 2025.
How can we assist you?
We suggest that operators analyze the design, structure and obligations of this new Excise Tax to ensure full compliance prior to its entry into force.
Salinas & Partners, with more than 30 years of experience in indirect taxation, is at your disposal for any questions or comments you may have.
