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A company has requested a ruling on whether a product consisting of natural stones, glycerol, propylene glycol, and flavourings for inhalation via a water pipe is subject to excise duty. The Directorate-General for Taxes (DGT) has ruled that, as it has no medicinal function and is capable of being smoked, it is classified as a tobacco product.
Companies producing or distributing non-tobacco inhalation products must ensure they are not classified as tobacco products under tax law to avoid excise duties.
The tax team reviews your specific situation.
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