Excise on e-liquids to apply from 1 November
A new tax on the liquid used in vapes and related products will come into effect on 1 November after the Minister for Finance signed a commencement order for the measure.
The E-liquid Products Tax (EPT) will apply to both nicotine-containing and non-nicotine-containing e-liquid products at a single flat rate of 50 cent per millilitre of e-liquid.
The taxing point for EPT will be the first supply of an e-liquid product in the State, and the tax will follow Revenue’s standard model of self-assessment, according to the Department of Finance.
The new excise duty was provided for in the .
Revenue registration
Suppliers of e-liquid products will have to register with Revenue before making their first supply in the State.
The department says that Revenue will issue detailed information for suppliers about their obligations under the tax next week.
While the EU is addressing the taxation of such products through a revision of the , the Government says that Ireland and other member states have moved to introduce domestic taxes on e-cigarette products in the interests of public health.
Harmonisation
“This measure will help to address the public-health concerns created by the rising prevalence of vapes and related products on the Irish market and their increasing usage amongst young people,” said Minister Paschal Donohoe.
He welcomed EU plans to include such products in a revised directive, adding that harmonising definitions and the tax treatment of novel products would help to ensure legal certainty across the EU.
Minister for Health Jennifer Carroll MacNeill has welcomed the signing of the order.