The Special Consumption Tax (SCT) is imposed on selected products, unlike VAT, which applies to almost all products and services.
It falls under the category of indirect taxes, and its main characteristic is that it is paid when goods are made available for consumption. The SCT applies to both domestically produced goods and those originating from other EU Member States or imported from third countries.
The consumption taxes imposed on coffee, e-liquid refills for electronic cigarettes, and heated tobacco products are nationally imposed taxes, as they are not harmonized at the EU level.
The following product categories are subject to SCT in Greece:
Manufactured Tobacco
(Cigarettes, Cigars, Cigarillos, Smoking Tobacco, Other Smoking Products)
Alcohol and Alcoholic Beverages
(Whisky, Vodka, Ouzo, Tsipouro, Beer, Vermouth, Champagne, Wine, Fermented Beverages)
Energy Products and Electricity
(Petroleum Products, Natural Gas, Coal)
Coffee
(Roasted, Unroasted, Instant, Preparations)
E-liquids for Electronic Cigarettes
(With Nicotine, Without Nicotine)
The production and distribution of these products are carried out through specialized customs procedures, which are strictly monitored by the competent authorities.
The way the Special Consumption Tax (SCT) is calculated and imposed varies for each product, as it is based on the quantity of the product. Additionally, each EU Member State may, if it chooses, set higher tax rates.
In most cases, the SCT is confirmed and collected simultaneously with the Value Added Tax (VAT) and any other related charges through the submission of the Special Consumption Tax and Other Taxes Declaration to the relevant customs office overseeing your business.
The collection of SCT for products produced or acquired through intra-Community transactions is suspended when the goods are placed in a tax warehouse by an approved warehouse keeper. Tax warehouses and approved warehouse keepers are recognized according to the procedures outlined in Articles 63 and 64 of the Customs Code (Law 2960/2001).
A tax warehouse is defined as the place where SCT products are produced or stored under a suspension regime.
The establishment and operation of a tax warehouse require the submission of the necessary documentation, as well as the required guarantee letter for this purpose.
The main categories of SCT product operators are:
- Authorized Warehouse Keeper
- Registered Consignee
- Certified Consignor/Consignee
- Occasionally Certified Consignor/Consignee
These categories differ based on how each type of operator is authorized to handle such products.
Goods subject to Special Consumption Tax (SCT) are moved between EU Member States through the EMCS system by electronically submitting the Administrative Document (e-AD).
This is the electronic system for monitoring and controlling the intra-Community movement of harmonized products under suspension of SCT payment. The system is developed by all Member States based on specifications agreed upon between the Member States and the EU Excise Duty Committee.
The ultimate goal of the system is to improve the functioning of the internal market. It allows Member States to monitor, in real time, the movement of harmonized products under suspension and conduct necessary checks to ensure the collection of taxes in the Member States where these products are consumed, thereby reducing the risk of fraud.
(Products for which SCT has been paid)
The intra-Community movement of SCT products for commercial purposes, for which SCT has been paid in the Member State of dispatch, is carried out under the Simplified Administrative Accompanying Document (s-AAD) through the EMCS system.
In these cases, the tax becomes due in the Member State of destination, i.e., the Member State where the products will ultimately be consumed. If the conditions set by the applicable provisions are met, the tax paid in the Member State of dispatch is refunded.
Cases of exemption from Special Consumption Tax (SCT):
SCT is exempt for all SCT products intended for use in the following cases:
- Diplomatic or consular relations.
- Recognized International Organizations and their members, within the limits and under the conditions specified by the International Conventions establishing them or the agreements on their headquarters.
- Armed forces of any state participating in the North Atlantic Treaty, except for the Member State where the SCT is due, provided the products are intended for use by these forces, their accompanying civilian personnel, or for supplying their messes or canteens.
- Armed forces of the United Kingdom stationed in Cyprus, under the Treaty of Establishment of the Republic of Cyprus of August 16, 1960, for use by these forces, their accompanying civilian personnel, or for supplying their messes or canteens.
- Consumption under agreements concluded with third countries or international organizations, provided the agreement is accepted or permitted to be subject to VAT exemption.
- Supply of ships and aircraft, in accordance with applicable national provisions.
