Sparkling Wine Taxes in Europe

In a few days, people around the world will celebrate the turn of a decade, with many opening a bottle of sparkling wine to wish farewell to 2019 and offer a warm welcome to 2020. How such a bottle of sparkling wine is taxed differs significantly across EU countries, ranging from no excise taxAn excise tax is a tax imposed on a specific good or activity. Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and betting, and typically make up a relatively small and volatile portion of state and local and, to a lesser extent, federal tax collections. in some countries to over €6 per bottle in Ireland.

You’ll find the highest excise taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. es on sparkling wine in Ireland, at €6.37 (US $7.08) per standard sized wine bottle (750ml or 20oz). The United Kingdom and Finland are next, at €3.11 ($3.46) and €2.98 ($3.31), respectively.

Of the countries levying a sparkling wine tax, the lowest rates can be found in France (€0.07, or $0.08), Romania (€0.08, or $0.09), and Malta (€0.15, or $0.17)

All European countries also levy a value-added tax (VAT) on sparkling wine. The amounts shown on the map relate only to excise taxes and do not include the VAT, which is charged on the sales value of the sparkling wine bottle.

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