Changes in Duty per 01/01

Hi all,

The dutch duty system is changing per 01/01/24 - not only is it moving from Plato based to % alcohol based, it also raised significantly - we are looking at a 28% increase in taxes :frowning:

This would be a good moment to finally be able to start using the full duty tool for non-UK - do you think this will happen?

If you need any info to speed this up let me know

Hi Gijs - I’m sorry to hear that your duty rates are going up so significantly :frowning:

We have actually made some significant progress in adding support for the current Dutch duty system and were hoping to have it ready by the end of the year, but it hasn’t been designed for the new system, and we’ve struggled to find information about the new system so far.

Would you mind sharing any details you have so that we can ensure that we can support it too in Breww?

Yeah it is a bit of shit show (what’s new) - we are significantly more expensive than Belgium and Germany as well next year

This is the latest.

200.000 HL - €8.12 per HL per % alcohol with a minum of €26.13
< 200.000 HL - €7.51 per HL per % alcohol with a min. €26.13
Non Alcoholic usage tax (“sugar tax”) <0.5% of €26.13

This is based on the abv mentioned on the label based on one decimal (rounded down - e.g. 6.29 becomes 6.2).

Please note: There is a tolerance allowed on labels of 0.5% if the beer is below 5.5% and 1% if it is above 5.5% (yup. weird right? You could techncally label a beer of 7% to be 6% and pay less duty - but I think they’ll close that loophole in the future)

This tool is used to compare differences in Duty per beer and you can pull some numbers out of it
https://craftbrouwers.us12.list-manage.com/track/click?u=5db2aeb116b0443edd53c7a29&id=99d380079a&e=86d904c2c9

All info comes from a mailing from 1/11 by CRAFT (the small brewers association)

2 Likes

Noticing some of my kindred dutch breweries with keen interest about this. any news?

Is our new system actually more closely resembling the UK system?

Hi Gijs - thanks for that extra information; that will be really helpful! Sorry for the delayed reply; I’ve been away and then wanted to dig deeper into what exactly was changing here.

We had actually completed 90% of the functionality to add the old (current) Dutch duty regime, which was unfortunately held up by an unforeseen complication that will be resolved in the next couple of weeks. So, if the excise system is going to change significantly, then deploying a report that might only be used for one month seems pointless!

However, looking through what you’ve sent through from CRAFT, it looks like the changes might not be as significant as we thought. From this spreadsheet, it appears there are only two rates coming into effect in 2024:

  • €7.51 per litre of alcohol if the excise duty discount for small breweries applies
  • €8.12 per litre of alcohol if it doesn’t

This figure is then multiplied by the ABV % as a decimal to get a per litre of beer volume rate, e.g. €7.51 x 4.5% = €0.33795, and if this figure is less than €0.2635, then €0.2635 is used instead.

So 50 L of 4.5% sold at the reduced rate would be:

€7.51 x 4.5% = €0.33795 per litre of beer volume
50 L x €0.33795 = €16.8975 payable

Does this look correct to you, and does this minimum €0.2635 per beer volume litre rate match your understanding of the new rules?

If so, this looks like a simple system to build a report for, which is at least some good news despite the rate rise!

Hi Max,

Good to hear!

From what I Gather this is all correct!

1 Like

Hi Gijs - thanks for confirming! We’ll keep you posted :ok_hand: