Excise Taxpayers in 2026: Who Are They and What Are Their Obligations?

Not sure if you’re required to pay excise tax? We’ll help you determine the correct tax regime, prepare the necessary documents, and handle communication with the customs office.

Are you curious about what it means to be an excise tax payer and what obligations come with it? We’ve prepared a clear guide where you’ll learn who must pay excise tax and when, how the registration process works, when to file a tax return, and what to watch out for when manufacturing, storing, transporting, or importing certain products. We’ll also explain the current excise tax rules and rates for 2026.

What Is Subject to Excise Tax

Excise tax applies to selected products for which the law stipulates special taxation beyond the scope of VAT. Under Czech law, this term primarily includes mineral oils (e.g., gasoline, diesel, LPG), alcohol and spirits, beer, wine and intermediate products, traditional tobacco products (cigarettes, cigars, smoking tobacco), as well as new types of tobacco products (e.g., heated tobacco products) and raw tobacco.

In practice, this means that each taxable product has its own excise tax rate and its own method of calculating the tax base (for example, per 1,000 liters for mineral oils, per hectoliter of absolute alcohol for alcohol, per hectoliter and degree Plato for beer, a combination of a fixed amount and a percentage for cigarettes, etc.). In day-to-day operations, taxpayers use precisely defined codes and the current rates published by the tax authority.

Who Is Liable for Excise Tax

The excise tax payer is not “whoever happens to be selling,” but rather the party who, at a specific point in time, becomes obligated to declare and pay the tax under the Excise Tax Act. The law lists the typical roles and situations in which a company (or individual) becomes a taxpayer. It is crucial to correctly identify the moment when the obligation arises and your company’s role in the chain (manufacturing, storage, transportation, release into free circulation, import, special use). The Czech Customs Administration is always the tax administrator for this tax.

Basic Definition of a Taxpayer Under the Act

The law expressly states that a taxpayer is a legal or natural person, in particular the operator of a tax warehouse, an authorized consignee, a tax consignor, or a manufacturer, upon whom the obligation to declare and pay the tax has arisen in connection with the release of selected products into free tax circulation, or in the event of loss, destruction, or other impairment of products transported under a conditional tax exemption regime.

The Act further specifies additional situations for individual commodities (mineral oils, alcohol, beer, wine and intermediate products, tobacco products, raw tobacco), in which the person who uses or sells the products for a purpose other than that for which they were taxed or exempted, or who violates a specific obligation (e.g., the prohibition on selling cigarettes at a price higher than that indicated on the tax stamp) , also becomes liable for the tax.

In practice: if your company releases goods into free circulation (for example, by releasing them from a tax warehouse onto the domestic market), you are the taxpayer and must file an excise tax return for that month. If, during transport under a conditional exemption regime, a loss occurs or the regime is breached, the taxpayer is the party responsible for that portion of the transport (typically the consignor or the permit holder, depending on the circumstances).

Roles in Which You Become a Taxpayer

• Tax warehouse operator – if you release products from the conditional exemption regime into free circulation in the Czech Republic (e.g., you ship alcohol or diesel to the market), you are required to declare and pay the tax.
• Authorized consignee – receives selected products from another Member State under the conditional exemption regime. Upon releasing them into free circulation in the Czech Republic, the consignee becomes the taxpayer. The transport is governed by EMCS/e-AD.
• Authorized Consignor —an entity that transports specified products under a conditional tax exemption from the place of import to a tax warehouse in the Czech Republic, to an authorized consignee in another Member State, a place of exit in another Member State, or to a consignee in another Member State who receives similarly tax-exempt products in accordance with local regulations. Only a tax warehouse operator may be an authorized consignor.The operator becomes the taxpayer, in particular, if there is a breach of the regime.
• Manufacturer outside the conditional exemption regime —if you manufacture a selected product outside a tax warehouse (where the law requires production to take place within a warehouse), you become the taxpayer at the moment the obligation arises; typically, immediate filing is required (see below).
• Recipient of goods in free circulation from another EU Member State —if you transport goods already in free circulation from another Member State to the Czech Republic, the obligation to file and pay tax arises in the Czech Republic. Prior to the first shipment, the destination must be reported and a shipment identification number assigned.

Special Triggers for Taxpayer Status by Commodity

• Mineral oils: A taxpayer also includes anyone who uses or sells oils taxed at a lower rate for a purpose subject to a higher rate (e.g., heating oil used in an engine), or who uses an exempt product contrary to its intended purpose.
• Alcohol and alcohol-containing products: A person also becomes liable for tax if they purchase or import alcohol or alcohol-containing substances under an exemption and do not use them for the exempt purpose (flavoring, industrial use, etc.).
• Tobacco products and raw tobacco: The law specifies special cases (e.g., the sale of cigarettes above the excise tax price, handling raw tobacco for purposes other than those permitted) in which the person concerned becomes a taxpayer and is required to file a tax return.

Excise Tax Registration: When and How to Complete It?

If your business involves manufacturing, importing, or otherwise handling certain products, you may be required to register for excise tax. Excise tax registration is handled at the relevant customs office, and you generally must complete it no later than the date on which you first become obligated to report and pay the tax. However, the law also provides for exceptions.

How do you become an excise tax payer?

If you’re wondering how to become an excise tax payer, it’s important to know that this status isn’t established solely by voluntary registration. It arises directly under the law if you engage in an activity or a situation occurs that the law associates with the obligation to report and pay the tax.

Before starting a business, it is therefore advisable to determine whether your activity is subject to excise tax, whether registration is required, and whether you need any additional permits. Registration alone, for example, does not replace a permit to operate a tax warehouse.

Basic Terms for Taxpayers

To help you keep track of the context in practice, here is an overview of the most commonly used terms in the field of excise taxes:

Taxable Product

Excise taxes apply to precisely defined groups of products. So-called “selected products” include mineral oils, alcohol, beer, wine, and intermediate products, as well as traditional tobacco products such as cigarettes, cigars, and smoking tobacco.

However, the list of taxed products does not end there. The law also establishes separate excise taxes for heated and other tobacco products, raw tobacco, and products related to tobacco products. The latter group includes, for example, e-cigarette refills, nicotine pouches, and other nicotine products.

In practice, it is therefore important to first correctly determine which group your product belongs to. Only then can you determine which tax applies to it and what obligations you will need to fulfill.

Excise Tax Administrator

Customs offices are the sole excise tax authorities. You file your returns with them and communicate with them.

Conditional Tax Exemption Regime

Under the conditional exemption regime , selected products are manufactured, stored, and transported without immediate taxation between entities that hold the appropriate permits (typically tax warehouses, authorized consignees/consignors). The tax is not declared until the goods are released for free circulation. Movements under this regime must be recorded in the EMCS system.

Free Tax Circulation (FTC)

Free circulation means that a selected product is no longer under the conditional tax exemption regime. When a product is released into free circulation, the obligation to declare and pay excise tax generally arises. However, the release itself does not yet mean that the tax has actually been paid. Starting in February 2023, the EMCS system will also be used for commercial shipments of selected products in free circulation between EU member states, provided they are subject to the relevant electronic record-keeping regime.

EMCS and e-AD

EMCS (Excise Movement and Control System) is a European electronic system that helps track the movement of selected products between EU member states. It is important to distinguish under which regime the products are traveling. If they are transported under a conditional tax exemption regime, the electronic accompanying document (e-AD) is used. For cross-border shipments of products that have already been released for free circulation, the simplified electronic document e-SAD has been in use since February 2023. Choosing the correct document is essential for smooth transport and for subsequently demonstrating compliance with tax obligations.

Tax Warehouse

A tax warehouse is an authorized location where you may manufacture, receive, store, or ship selected products under a conditional exemption regime. Operating a tax warehouse requires authorization from the customs office and a tax guarantee to cover the risk of non-payment. The general rule is: the production of selected goods, barring exceptions, takes place in a tax warehouse.

Authorized Consignee and Authorized Consignor

An authorized consignee may receive selected products from another Member State under the conditional exemption regime outside a tax warehouse. An authorized consignor, on the other hand, may dispatch selected products from the place of import to a tax warehouse or another authorized location. An authorized consignee can thus utilize the conditional tax exemption regime without operating a tax warehouse themselves. The situation is different for an authorized consignor—in the Czech Republic, they must be the operator of a tax warehouse. In both cases, shipments are processed through the EMCS system.

Tax Security (Guarantee)

A tax guarantee is a financial guarantee required by the tax authority, particularly for tax warehouses and authorized consignees/consignors. The customs office determines the amount based on the expected volume and risk, and the taxpayer must ensure that the guarantee is sufficiently high. Without a sufficient guarantee, shipments or operations under the RPOD procedure will not be authorized.

Release for Free Circulation

Release into free circulation is the moment when a selected product leaves the conditional exemption procedure and the obligation to declare and pay tax arises. Typically, this involves release from a tax warehouse for the domestic market, but it may also involve an import with placement under the relevant customs procedure, where the customs declaration serves as the tax return. The correctly determined time of release determines who is the taxpayer and for which period.

Tax Base

The tax base for excise tax is a unit specified by law, from which the tax is calculated after multiplication by the applicable rate (tax = tax base × rate). The specific tax base varies by commodity (e.g., alcohol: a hectoliter of ethanol at 20 °C; heated tobacco products: grams of filling in a unit package).

Tax Rate

The excise tax rate specifies the method and amount of taxation for selected products. In the Czech Republic, fixed rates per unit of quantity are predominantly applied (e.g., CZK/1,000 L of mineral oils at 15 °C, CZK/hl of ethanol, CZK/hl × degrees Plato for beer, CZK/kg for smoking tobacco). For cigarettes, the rate is a combination of a fixed amount per 1,000 pieces and a percentage of the retail price, and a minimum tax per 1,000 pieces is also set. The resulting tax is calculated as the product of the tax base and the rate.

What are the obligations of an excise tax payer?

The obligations of an excise tax payer go beyond simply paying the tax. A business owner must first correctly identify which products are subject to the tax and when the tax liability arises. As a rule , they must also fulfill registration requirements, maintain the necessary records, calculate the tax according to the applicable rate, and file a tax return on time.

If they manufacture, store, or transport certain products under a special tax regime, additional requirements may apply. These include, for example, obtaining a license to operate a tax warehouse, securing the tax, or using the EMCS electronic system when transporting products.

The specific scope of obligations always depends on the type of products and the nature of the business. Therefore, it is important to verify all requirements before commencing operations so that the business owner does not face additional tax assessments or penalties.

Excise Tax Return: When and How to File It?

The excise tax reporting period is a calendar month, unless otherwise specified by law. Taxpayers generally file a separate tax return for each type of excise tax for which they have incurred a tax liability. An exception is made for traditional tobacco products, for which the order for tobacco tax stamps typically serves as the tax return. A separate return is filed in these cases only when required by law. The specific procedure therefore always depends on the type of product and how the tax liability arose.

Excise tax is generally reported on a calendar-month basis. The tax return is usually filed by the 25th day of the following month, and the tax is due within 40 days after the end of the tax period. Be aware of exceptions, however. For example, for excise tax on alcohol, the standard payment deadline is extended to 55 days, while for raw tobacco, the tax is generally due within 25 days. In some situations, such as unauthorized production outside the conditional exemption regime, the deadlines may be significantly shorter.

The return is filed with the relevant customs office, and where required by law, it must be filed electronically. Therefore, before each filing, verify the rules for the specific type of product and how the tax liability arises.

Calculation of Excise Tax

For most commodities, excise tax is calculated by determining the tax base (volume in technical units) and multiplying it by the applicable excise tax rate. For cigarettes, a combination of a fixed amount and a percentage-based component with a minimum tax applies; for beer, the specific gravity (Plato) is the determining factor; and for alcohol, it is the quantity of pure alcohol in hectoliters of absolute alcohol.

Example 1 – Excise Tax on Alcohol (40% ABV)

As of January 1, 2026, the excise tax on spirits has increased again, this time to 41,050 CZK per hectoliter of pure alcohol. What does this mean in practice? One liter of a 40% alcohol beverage contains 0.4 liters of pure alcohol, or 0.004 hectoliters. The excise tax thus amounts to 164.20 CZK per liter, or 82.10 CZK per half-liter bottle. For a correct calculation, it is therefore essential to consider not only the volume of the beverage but, above all, its actual alcohol content.

Example 2 – Cigarettes (combination of fixed and percentage components, minimum tax)

For cigarettes, the law sets a fixed amount per cigarette plus a percentage of the retail price, as well as a minimum tax per cigarette. The rates are regularly adjusted for inflation. The excise tax on cigarettes increased again in 2026. Its fixed component is now 2.39 Kč per cigarette, and the percentage component is 30% of the price to the final consumer.

The law also sets a minimum tax of 4.66 Kč per cigarette. For a standard pack of 20 cigarettes, the excise tax must therefore be at least 93.20 Kč. If the sum of the fixed and percentage components is lower, the minimum tax applies. Therefore, to calculate the tax correctly, it is not enough to know only the number of cigarettes; one must also know their price to the end consumer.

Example 3 – Mineral Oils (Gasoline/Diesel)

For most mineral oils, the rate is set per 1,000 liters (for some, by weight). The calculation of the excise tax is therefore based on the quantity of mineral oil, its exact classification, and the corresponding rate specified in Section 48 of the Excise Tax Act. For regular unleaded gasoline, the rate in 2026 is 12,840 CZK per 1,000 liters, and for diesel fuel, the standard rate is 9,950 CZK per 1,000 liters.

However, in 2026, the government also implemented a temporary reduction in the tax burden on diesel fuel. From April through July and again during October, a portion of the excise tax—amounting to 1,939 CZK per 1,000 liters—is waived for selected types of diesel. During these periods, the tax burden on the affected diesel thus amounts to 8,011 CZK per 1,000 liters. For an accurate calculation, it is therefore important to monitor not only the statutory rate but also any currently applicable measures issued by the Ministry of Finance.

Tax Warehouse: Licensing, Tax Security, and Ongoing Monitoring

A tax warehouse is a space (facility) where selected products may be manufactured, processed, received, stored, or shipped under a conditional exemption from excise tax. Operation requires a permit and tax security. Without a permit, products cannot be held under the conditional exemption regime.

How to Obtain a Tax Warehouse Permit

You apply for a tax warehouse permit at the customs office. In the application, you typically identify the company, provide a detailed description of the premises (address, floor plans, security measures, measuring equipment), specify the types of products and expected volumes, and describe internal control mechanisms (inventory records, loss measurement, responsible persons).

You can submit the application electronically, for example, through the Customs Administration’s cPortal or a data box. However, you may also submit it in person or by mail. You will pay an administrative fee of 1,000 CZK for submitting the application for a permit.

The customs office will not issue the authorization without security (typically a bank guarantee). You must provide the security no later than during the authorization proceedings —if you fail to do so, the authorization will not be issued or may be revoked. For shipments under the RPOD procedure without a security deposit, you will not receive a reference code and will not be able to initiate the shipment in EMCS.

The customs office will inspect the premises (leak-proofing, measurements, lockability, IT records), verify the amount of the security deposit, and only then issue a decision on the authorization. You may not begin actual operations at the authorized location until the decision becomes final.

Obtaining a tax warehouse permit is not merely an administrative formality. Among other things, the customs office assesses the applicant’s reliability, financial stability, the suitability of the premises, and tax security. If the application is not prepared correctly, starting your business may be unnecessarily complicated or delayed. We will help you verify the legal requirements, prepare the necessary documentation, and represent you in dealings with the customs office. This will allow you to avoid complications even before you begin operations.

Tax Security (Guarantee) and the Obligation for Ongoing Monitoring

The amount of the tax security depends primarily on the quantity and value of the goods handled by the company. However, determining this amount is not a one-time process. Tax warehouse operators and authorized consignees subject to this obligation must continuously monitor whether the security provided still corresponds to their actual activities. If, based on the statutory calculation, they determine that it is no longer sufficient, they must generally top it up within 10 days. In some cases, however, they may request a reduction or complete waiver of the security. It is therefore advisable to regularly check not only warehouse inventories and shipments but also whether their volume corresponds to the security provided.

Transportation of Selected Products: EMCS, e-AD, and Transportation in the Czech Republic and the EU

EMCS (Excise Movement and Control System) is a European electronic system for recording and tracking shipments of selected products. In EMCS, an electronic accompanying document (e-AD) is issued for shipments under the conditional tax exemption regime. As of February 13, 2023, EMCS is also used for shipments in free circulation between EU member states (so-called VDO), which has significantly simplified the process of verifying the composition and taxation of goods. EMCS is therefore mandatory for taxpayers who transport selected goods across borders within the EU.

Transportation within the Czech Republic (free circulation and tax-exempt products)

The Customs Administration provides comprehensive information on the accompanying documents required for the transport of selected products in free circulation within the Czech Republic, on how to prove taxation and the lawful acquisition of exempt products, and on procedures to follow in the event of changes to tax rates. Before shipping or receiving a shipment , verify whether it falls under the conditional exemption regime (EMCS) or free circulation.

An Example from Our Legal Practice

From our legal practice, we know that business owners often underestimate the rules governing the transport of certain goods between EU member states. They assume that if the goods have already been taxed in another member state, they do not have to fulfill any further tax obligations in the Czech Republic. However, this is not always the case.

A typical example involved a company that wanted to begin regularly importing craft beer from Germany and selling it to Czech customers. Since the German supplier had already released the beer into free circulation, the company initially assumed it would not have to pay any additional excise tax in the Czech Republic.

However, upon legal review, we determined that the company must meet the requirements for a registered consignee before commencing shipments, ensure proper identification in the EMCS system, and correctly set up excise tax reporting in the Czech Republic.

We therefore helped prepare the necessary notifications, establish a procedure for tracking shipments, and clarify responsibility for tax obligations. As a result, the company obtained the necessary documentation to begin imports in compliance with the law and avoided the risk of problems during customs inspections.

Situations like this illustrate why it is important to address tax obligations before the first shipment. Correcting issues after the fact can be significantly more complicated than setting up the entire process correctly from the start.

Application for an Excise Tax Refund

Excise tax is not a one-way street. The law also provides for cases where excise tax that has already been paid can be reclaimed. Not only businesses but also individuals may be eligible, provided they meet the legal requirements. Typically, tax refunds apply to certain mineral oils used for heat generation, agricultural activities, or other purposes defined by law.

However, it always depends on the specific product, how it is used, and whether the conditions for a tax refund are met. Certain conditions must be met. For example, for a tax refund on heating oils, the oils must be properly marked and colored and demonstrably used for heat production. The claim is filed using a special tax return for the tax refund on the prescribed forms.

In practice: You file the return to claim the excise tax refund electronically (via a data box with an electronic signature) and attach the required supporting documents according to the specific section of the law (proof of purchase, records, technical specifications of the equipment, etc.).

Accounting for Excise Tax

From the perspective of Czech companies’ accounting, excise tax is recorded in account 345—Other Taxes and Fees, and it is advisable to maintain subledgers for individual commodities (e.g., 345/1 alcohol, 345/2 mineral oils, etc.). On the customer’s side, excise tax may be included in the acquisition cost of inventory.

Do not confuse account 343 (VAT) with excise tax. Excise tax is not deductible like VAT and is not included in the VAT return, but it increases the VAT base when selling to the end customer (i.e., VAT is also calculated on the amount of excise tax).

Summary

Excise tax liability primarily applies to businesses that manufacture, import, store, or transport products defined by law. However, this does not mean that everyone who sells alcohol, tobacco, or fuel is automatically required to report and pay excise tax. The decisive factors are the specific role of the business and the point in time when the tax liability arises under the law.

In 2026, it is important to pay attention to the current excise tax rates, particularly for alcohol and tobacco products. Correctly determining the tax base and rate is essential for calculating the tax liability. It is equally important to meet the deadlines for filing returns and paying the tax. While returns are generally filed by the 25th day of the following month, the due date may vary depending on the type of product.

Business owners should also not underestimate the administrative aspects of being a taxpayer. Operating a tax warehouse requires the appropriate license, securing the tax, and maintaining ongoing records. When transporting certain products across borders, it is essential to correctly use the EMCS system and the corresponding electronic documents. In some cases, the law also allows you to apply for a refund of excise tax already paid.

If you are unsure whether any of these obligations apply to your business, it is worth having the situation reviewed by a legal professional before starting your business or making your first shipment. Properly established procedures will help you avoid additional tax assessments, late-payment interest, and other complications during a customs audit.