E-commerce alcoholic beverages
Consumers are seeking greater choice and convenience. The internet and its online marketplaces allow consumers to go beyond traditional bricks and mortar shops and to select merchandise from throughout the EU for delivery direct to their house.
This new way of shopping opens exciting new international markets for producers and suppliers.
Although producers and suppliers are increasingly aware of the fast-growing, new, international market,particularly in relation to the sale of exciseable goods, many have been put-off by complex tax compliance regimes in different member states. In recognition of this, the European Excise Duty Representatives Alliance (EDRA) has been set-up by leading EU tax advisors. Its mission is to enable national tax compliance and thereby to facilitate the direct sale of wines, beers and spirits throughout the EU. EDRA provides a single national point of contact for businesses wishing to make direct sales throughout the member states. EDRA is the first and only European indirect tax network focused on alcoholic beverage e-commerce.
What is the distance sales system?
- In B2C (Business to Consumer) transactions, the seller of the alcoholic beverage is located in a different EU Member state to the purchaser (who is final consumer). The distance sales system applies.
- Under this system, the seller – or their tax representative – is responsible for the payment of excise duty and VAT following the rules of the Member state of destination.
What are the implications of using this system?
- The distance sales system requires that businesses are responsible for all national taxes in the destination country. Normally payment of taxes will need to be made through a local fiscal representative. Goods are shipped EU duty paid from the country of origin.
- Once the seller can prove the payment of local excise duty at destination, the refund of the taxes paid in the shipping Member state can be reclaime
What solution does EDRA offer you?
- EDRA offers a comprehensive solution to overcome these regulatory barriers. Vendors communicate in their own language, with their national EDRA agent. The national EDRA agent will then instruct the EDRA representatives in each destination
Member state, acting as a single point of contact. cuestión.
- EDRA offers EU tax compliance. It reduces risk and complexity, enabling producers and suppliers to access new markets.
- EDRA services are currently available to the following EU countries:
- Czech Republic
- DIRECT E-COMMERCE
- SALES OF ALCOHOLIC
- The Netherlands
- United Kingdom