Taxation of beverages
Verified 01 January 2024 - Legal and Administrative Information Directorate (Prime Minister)
What's New in Tobacco and Alcohol Regulation
Published on 1 January 2024
The decree no. 2023-1295 of 28 december 2023 and the decree no. 2023-1294 of 28 december 2023 amend the rules concerning the declaration and payment of excise duty on tobacco and alcohol.
The card is being updated.
Beverages are subject to different taxes, depending on whether they are alcoholic or non-alcoholic beverages.
Alcohol
Alcoholic beverages and so-called premix are subject to various duties and taxes. For alcoholic beverages, indirect taxes (or excise duties) and social security contributions vary according to the type of product. Those alcoholic products are, moreover, subject to VAT at the rate of 20%.
Which alcoholic beverages are affected?
The tax treatment of a beverage depends on its fiscal definition.
The alcoholic beverages subject to tax are:
- Beverages having an actual alcoholic strength by volume of more than 1.2% theft
- Beers having an alcoholic strength by volume acquired from 0.5% theft
Knowledge of the position of a beverage in the Combined Nomenclature of the Customs Tariff is necessary to determine the tax arrangements applicable to alcohol.
The premix is a pre-mixed spirit drink (gin, rum, vodka, wine, whisky, beer in particular) with added tonic, soda (cola) or fruit juice. It contains alcohol, even if it tastes like a soda. It shall be subject to a contribution where the beverage obtained has an actual alcoholic strength between 1.2% flight and 12% flight.
L'alcopop, also named ready to drink, is a fancy alcoholic drink consisting of ethyl alcohol of agricultural origin (in particular fermentation) which cannot be consumed as such. But which become so by adding various ingredients such as lemonade, water, aroma, sugar. There are also alcopops made from wine, fruit wine and beer malt.
What is the amount of the consumer charge?
The pricing of consumption rights varies according to the tax category of the alcoholic beverage.
The rates of duty on alcoholic beverages, alcoholic beverages and non-alcoholic beverages shall be fixed each year by a ministerial order.
Consumer fees are paid on behalf of consumers or retailers by importers or authorized warehousekeepers.
Drink | Consumption law |
|---|---|
Still wine | €4.05/hl |
Fermented beverage other than wine and beer | €4.05/hl |
Sparkling wine | €10.02/hl |
Cider, perry, mead | €1.41/hl |
Liqueur wine and natural sweet wine | €50.6/hl |
Other intermediate product: port, pineau, pommeau | €202.39/hl |
Beer of an alcoholic strength not exceeding 2.8%vol., including a mixture of beer and non-alcoholic beverages of an actual alcoholic strength by volume between 0.5% and 2.8% vol.) | €3.98/degree/hl |
Beer with more than 2.8% alcohol theft | €7.96/degree/hl |
Small brewery producing up to 200,000 hl per year | €3.98/degree/hl |
Dom rum | €933.78/hl pure alcohol (hlap) |
Other alcohol | €1,866.52/hl pure alcohol (hlap) |
Reduced duty boilers | Deleted at 1er january 2024 |
FYI
Bottles must be fitted with duty representative caps (CRDs) signifying that the taxes have been paid.
Which alcoholic beverages are affected?
The tax treatment of a beverage depends on its fiscal definition.
The alcoholic beverages subject to tax are:
- Beverages having an actual alcoholic strength by volume of more than 1.2% theft
- Beers having an alcoholic strength by volume acquired from 0.5% theft
Knowledge of the position of a beverage in the Combined Nomenclature of the Customs Tariff is necessary to determine the tax arrangements applicable to alcohol.
The premix is a pre-mixed spirit drink (gin, rum, vodka, wine, whisky, beer in particular) with added tonic, soda (cola) or fruit juice. It contains alcohol, even if it tastes like a soda. It shall be subject to a contribution where the beverage obtained has an actual alcoholic strength between 1.2% flight and 12% flight.
L'alcopop, also named ready to drink, is a fancy alcoholic drink consisting of ethyl alcohol of agricultural origin (in particular fermentation) which cannot be consumed as such. But which become so by adding various ingredients such as lemonade, water, aroma, sugar. There are also alcopops made from wine, fruit wine and beer malt.
What is the amount of the social security contribution?
Pricing of social security contributions varies according to the tax category of alcoholic beverages.
The rates of duty on alcoholic beverages, alcoholic beverages and non-alcoholic beverages shall be fixed each year by a ministerial order.
The social security contribution is paid on behalf of consumers or retailers by importers or authorized warehousekeepers.
Drink | Contribution |
|---|---|
Alcohol - full rate | €599.31/hl pure alcohol (hlap) |
Intermediate product of more than 18% flight - full rate | €50.6/hl |
Intermediate product of more than 18% theft - reduced rate to 40% | €20.26/hl |
Beer over 18% theft - reduced rate to 40% | €50.6/hl |
Rum and alcohol based on raw alcohol of more than 18% vol., produced and consumed in the Dom | €482/hlap |
Wine-based premix | €3 per deciliter of pure alcohol |
Other premix | €11 per deciliter of pure alcohol |
FYI
Bottles must be fitted with duty representative caps (CRDs) signifying that the taxes have been paid.
Which alcoholic beverages are affected?
The tax treatment of a beverage depends on its fiscal definition.
The alcoholic beverages subject to tax are:
- Beverages having an actual alcoholic strength by volume of more than 1.2% theft
- Beers having an alcoholic strength by volume acquired from 0.5% theft
Knowledge of the position of a beverage in the Combined Nomenclature of the Customs Tariff is necessary to determine the tax arrangements applicable to alcohol.
The premix is a pre-mixed spirit drink (gin, rum, vodka, wine, whisky, beer in particular) with added tonic, soda (cola) or fruit juice. It contains alcohol, even if it tastes like a soda. It shall be subject to a contribution where the beverage obtained has an actual alcoholic strength between 1.2% flight and 12% flight.
L'alcopop, also named ready to drink, is a fancy alcoholic drink consisting of ethyl alcohol of agricultural origin (in particular fermentation) which cannot be consumed as such. But which become so by adding various ingredients such as lemonade, water, aroma, sugar. There are also alcopops made from wine, fruit wine and beer malt.
What is the VAT rate?
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General case
Alcoholic beverages are subject to the standard VAT rate of 20% for drinks to be taken away, delivered or consumed on site.
In Corsica
Alcoholic beverages to be taken away and delivered are subject to the standard VAT rate of 20%.
Alcoholic beverages to be consumed on site (sale in restaurants and drinking establishments in particular) are subject to the intermediate rate of 10%.
Waters
Drinking water is subject to specific taxation.
What waters are involved?
Irrespective of their packaging (drum, bottle, box, can for example), the following waters are subject to tax:
- Natural or artificial mineral waters
- Source and other drinking water
- Filtered, sterilized or pasteurized laboratory water
- Other carbonated or non-carbonated beverages, not containing more than 1.2% alcohol theft
Syrups, fruit juices, vegetable juices and fruit nectars are not covered.
What is the contribution?
The fee is set at €0.54 per hectoliter.
When is the contribution due?
In the case of liquid products and beverages or juices containing sweeteners, the contribution on non-alcoholic beverages is hard for the first delivery in France. No account shall be taken of their place of manufacture, including when they are introduced into France beforehand or at the same time as that delivery.
How do I declare and pay the contribution?
The contribution must be declared and paid in support of the VAT forms according to the VAT system:
- For the taxpayer covered by the normal VAT system, this contribution will be declared on the form #3310-A which must be filed in respect of the month or quarter in which the tax became chargeable.
- For the taxpayer covered by the simplified VAT system, this contribution will be reported on form No3517-S which must be filed in respect of the financial year in which the tax became chargeable.
- For other taxpayers, this contribution will be reported on the form #3310-A which must be filed by 25 April of the year following that in which the tax became chargeable.
Exports abroad are exempt from the levy when they are made directly and without intermediary by manufacturers, source operators, importers or a distributing business.
Who shall I contact
What waters are involved?
Irrespective of their packaging (drum, bottle, box, can for example), the following waters are subject to tax:
- Natural or artificial mineral waters
- Source and other drinking water
- Filtered, sterilized or pasteurized laboratory water
- Other carbonated or non-carbonated beverages, not containing more than 1.2% alcohol theft
Syrups, fruit juices, vegetable juices and fruit nectars are not covered.
What is the contribution?
A municipality in whose territory a commercially exploited mineral water spring is situated may, on the decision of the municipal council, receive a contribution up to €0.58 per hectoliter sold.
This maximum fee shall be increased to €0.70 per hectoliter if the municipality received a revenue for the volumes released for consumption in 2002 which was lower than that received for those volumes under the method of calculation in force before 1er January 2002.
Who is liable for the contribution and when?
The contribution shall be paid by the operator of the spring in respect of deliveries of such water, irrespective of packaging, including where the water has previously been incorporated into other products.
This is due at the time of delivery.
How do I declare and pay the contribution?
The contribution must be declared and paid in support of the VAT forms according to the VAT system :
- For the taxpayer under the standard VAT arrangements, this contribution will be declared on the form #3310-A which must be filed in respect of the month or quarter in which the tax became chargeable.
- For the taxpayer under the simplified VAT system, this contribution will be declared on form no3517-S which must be filed in respect of the financial year in which the tax became chargeable.
- For other taxpayerss, this contribution will be declared on the form #3310-A which must be filed by 25 April of the year following that in which the tax became chargeable.
Exports abroad are exempt from the levy when they are made directly and without intermediary by manufacturers, source operators, importers or a distributing business.
Who shall I contact
What waters are involved?
Irrespective of their packaging (drum, bottle, box, can for example), the following waters are subject to tax:
- Natural or artificial mineral waters
- Source and other drinking water
- Filtered, sterilized or pasteurized laboratory water
- Other carbonated or non-carbonated beverages, not containing more than 1.2% alcohol theft
Syrups, fruit juices, vegetable juices and fruit nectars are not covered.
What is the VAT rate?
Waters, as non-alcoholic beverages, are subject to the following VAT rates:
- 5.5% they are served in a means of containment (e.g. bottle, can, brick)
- 10% if they are to be taken away for immediate consumption, served in a non-returnable container (e.g. a cup made of cardboard or plastic)
Sweetened or sweetened beverage
Contributions are applicable to soft drinks containing added sugars (e.g. soft drinks) or synthetic sweeteners (e.g. drinks) light). They are the responsibility of professionals who manufacture, import or supply, even for free, these products to their customers (bar, restaurant, retail trade for example).
Which drinks are affected?
Drinks concerned | Beverages not affected |
|---|---|
The contributions shall apply to the following beverages: The contributions on sweetened and sweetened beverages concern beverages and liquid preparations for non-alcoholic beverages: When the product contains both added sugars and sweeteners, the sale is subject to the 2 taxes. |
|
FYI
the caffeinated beverages contribution does not apply to beverages that contain more than 220 mg of caffeine per 1,000 ml (i.e. 0.22 g per liter).
How much is it?
Sugar
Quantity of sugar (kg of added sugar per hl of beverage) | Applicable Price List (in € per hl of drink) |
|---|---|
Less than or equal to 1 | €3.34 |
2 | €3.9 |
3 | €4.44 |
4 | €4.99 |
5 | €6.11 |
6 | €7.22 |
7 | €8.33 |
8 | €10.55 |
9 | €12.77 |
10 | €14.98 |
11 | €17.21 |
12 | €19.43 |
13 | €21.65 |
14 | €23.87 |
15 | €26.09 |
Over 15 | + €2.21 / kg added sugar |
Please note
The contributions are included in the VAT base, which means that VAT is calculated on the amount excluding tax including the amount of the contribution.
Synthetic sweetener
The tax on beverages comprising synthetic sweeteners is set to €3.34 per hectoliter.
How do I declare and pay the contribution?
The contributions on sugar-sweetened beverages and sweetened beverages are payable by the persons who deliver the beverages or preparations concerned to France, whether in return for payment or free of charge. This includes the territorial collectivity of Corsica and the overseas territories (the territory of French Guiana, Réunion, Mayotte and the territory constituted by the union of the territories of Guadeloupe and Martinique).
They are:
- Manufacturers established in France who deliver the products concerned to the French market
- Persons who have imported the beverages and preparations they supply on the French market from third countries into the European Union
- Persons who have made Community acquisitions of these products in France from another Member State of the European Union which they then deliver to France
- Persons who, in the course of their commercial activity, supply for consideration or free of charge to their customers these beverages or preparations which may be consumed in the unaltered state and of which they have assembled in advance the various components, which are presented in containers not intended for retail sale. This is the case with restaurants.
Please note
the ultramarine territories are considered for tax purposes as export territories in the light of the metropolis and vice versa. The same shall apply to the ultramarine territories among themselves, subject to the provisions governing the Caribbean single market.
These contributions must be declared and paid in support of the VAT forms according to the VAT system:
- For the taxpayer covered by the normal VAT system, this contribution will be declared on the form #3310-A which must be filed in respect of the month or quarter in which the tax became chargeable.
- For the taxpayer covered by the simplified VAT system, this contribution will be reported on form No3517-S which must be filed in respect of the financial year in which the tax became chargeable.
- For other taxpayers, this contribution will be reported on the form #3310-A which must be filed by 25 April of the year following that in which the tax became chargeable.
Who shall I contact
Which drinks are affected?
Drinks concerned | Beverages not affected |
|---|---|
The contributions shall apply to the following beverages: The contributions on sweetened and sweetened beverages concern beverages and liquid preparations for non-alcoholic beverages: When the product contains both added sugars and sweeteners, the sale is subject to the 2 taxes. |
|
FYI
the caffeinated beverages contribution does not apply to beverages that contain more than 220 mg of caffeine per 1,000 ml (i.e. 0.22 g per liter).
What is the VAT rate?
Non-alcoholic beverages are subject to the following VAT rates:
- 5.5% if they are served in containers suitable for storage (for example, bottles, cans, bricks)
- 10% if they are to be taken away for immediate consumption, served in non-returnable containers (cups, cardboard cups or plastic cups).
Tax definition of alcohols
Specific duties on beer and soft drinks
Contributions on mineral waters
Contributions on the first
Contributions on sweetened and sweetened beverages
Classification of beverages
Labeling of foodstuffs with added caffeine
Directorate General of Customs and Indirect Taxes