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)

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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!

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

any progress? We are creeping towards the deadline…

Hi Gijs - don’t worry; we’ll have this ready for your January return to be submitted in February :+1:

Hi Max,

Thanks for your reply

I do not quite understand what you mean by februari?

I already need this system from 01/01 as I need to use it for export/duty free sales and price communication that month.

Maybe to clarify - are we now just talking about a report or a whole overhaul of the duty tool?

e.g. Do I need to hand calculate all the duty per product and punch them in at 02/01 or is it done automatically (like UK duty)

Hi Gijs - good news, we’re expecting this to go live early next week! And no you won’t need to update your duty per product manually, as Breww will now handle this automatically for you :ok_hand:

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That is awesome. Please make sure there is some kind of a switch button btw as this month is still the old system.

BTW (and sorry for this - we are struggling here as well) it turns out here the plan has not been fully confirmed yet. There is one motion of one party to postpone the ABV-plato shift - but this seems to be at best a delay. The results will be in end of next week. I will keep you posted.

(not so) Funny story - I know of duty officers asking brewers what the current status is - that is how much of a shitshow this is.

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Sorry to hear that the roll-out has been so poorly managed! It’s so frustrating for breweries to not be able to plan properly in situations like this :grimacing:

But I do have good news: the new Dutch excise calculations and report is now live and ready for the 1st Jan! You won’t see any impact from it until the 1st of January , when Breww will switch over automatically at midnight and you’ll have access to the new report (unless the duty change is postponed of course).

However, we have made it possible to enable it on some accounts early, although it will then completely take over your account, and you won’t have access to the current duty page. If this is of interest to anyone, please get in touch via a support ticket and we’ll enable it early on your account!

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Hi @gijs-van-wiechen, I was just wondering if you had heard any inside news about whether the new duty system is going ahead on the 1st of January or not! We haven’t found anything suggesting it won’t be, so we’re still all set to go live on the 1st :+1:

Just asked and at 14.00 there is a final moment in government - a CRAFT mailing wll be sent out tonight - i will share it here after

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Hi Max,

Unfortunately the situation has not been changed in government - so the info you have is the final one.

The only thing currently unclear is the exact way/data needed to do our returns - this will only be available from 01/01.

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Hi Gijs - thanks for the update, and sorry again to hear that the excise duty will definitely be increasing :frowning:

We obviously have all of the raw data for the report, so if we need to make any tweaks/additions to show you the exact information needed to submit your returns once they release the information, that won’t be a problem.

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Hi Max,

First off, best wishes for the new year.

I am currently not seeing any changes done automatically for duty (I am still on the manual system and those numbers have not changed - could you talk me through the changes I need to make to use the new setting?

Hi Gijs - thank you very much; best wishes to you too.

Yes, I apologise about that; it looks like Breww didn’t automatically switch over at midnight as expected - but that’s been resolved now!

The Excise duty main menu option should now take you to the new Excise duty report. To use it, you will first need to add your 2023 actual production total and your 2024 estimated production total in Settings → Beer duty settings so that Breww knows whether you are below the 200,000 hL threshold to qualify for the lower rate.

After that’s done, Breww will also then calculate the Nominal excise duty amount on all of your products for you.

As you hear more about the figures you will need to submit, we’ll keep that Excise duty report updated - so as soon as you hear anything, please let us know!

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