Excise duty on e-cigarette liquids: the labeling criterion

The Directorate General of Taxes (DGT) has issued a relevant criterion regarding the delimitation of the objective scope of the excise duty on e-cigarette liquids. The main issue lies in determining whether the commercialization of substances such as vegetable glycerin or propylene glycol should be subject to this tax.

What the DGT has resolved

The DGT establishes that vegetable glycerin or propylene glycol marketed in pure form are not part of the objective scope of the tax, provided that their container, packaging, or labeling does not indicate that they are marketed for use in e-cigarettes or similar vaporizer devices. The body clarifies that the type of establishment where sales are made is not a determining factor for the application of the tax.

However, the criterion introduces an important exception: if these substances contain accelerants or solubilizers and their final destination is use in e-cigarettes, they must be taxed within the objective scope of the aforementioned tax.

What it means for you

This criterion has a direct impact on customs representation companies and distributors of chemical components destined for the vaping sector. The key to taxation lies not only in the chemical nature of the product but also in the information provided to the consumer through labeling and packaging.

Companies must be aware that the absence of mentions regarding use in vaporization devices on the packaging is the element that allows these products to be excluded from the excise duty. Nevertheless, the presence of additives such as accelerants or solubilizers, combined with a destination for use in e-cigarettes, will trigger the tax obligation.

What should be done

It is necessary to carefully analyze the labeling and composition of the chemical products being marketed. The correct classification of the goods will depend on the consistency between the product's composition, its packaging, and the declared use for it. It is recommended to assess the technical situation of each product to ensure compliance with current regulations according to Law 38/1992 and Law 58/2003.