Highest and Lowest Beer Taxes In Europe

With the world beginning to open up again, we’ve been exploring the price of beer around the world. And one thing that effects the price of beer everywhere is something known as an excise tax.

So what the hell is an excise tax anyway?

An excise tax is any duty on manufactured goods that is levied at the moment of manufacture rather than at sale. Taxes imposed on products at point of purchase are known as VAT taxes (value-added taxes).

Just as in the US, every country in the European Union is required to levy an excise duty on beer of at least €1.87 per 100 liters (26.4 gal) and the degree of alcohol content, translating to approximately €0.03 per 330ml (11.2oz) beer bottle at 5% ABV.

Only a few EU countries stick close to the minimum rate,” according to the Tax Foundation, “Most levy on much higher excise duties.”

Finland, Ireland, and the United Kingdom are the three countries covered that levy the highest excise duties on beer. However if you’re pricing out a European vacation you might want to consider that Bulgaria, Germany, Luxembourg, Romania, and Spain are home to the EU’s lowest beer excise taxes.

And just as in the US, some countries levy reduced excise duties for independent small breweries so if you’re drinking local craft beers those taxes will be lower.

(Source: European Commission, “Taxes in Europe Database,” accessed July 23, 2021)

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Want more on beer taxes? There’s this…

THE STATE OF BEER TAXES IN YOUR STATE

And this…

UK PROPOSES RAISING TAXES ON SMALL BREWERS DURING PANDEMIC