Excise duty is the levy that stands apart from all others because it is not administered by the tax authorities. It is regulated by Law No. 61/2012, enforced by the General Directorate of Customs, and is not declared on e-Filing; therefore, an outstanding obligation does not appear on the tax statement but blocks the release of the next shipment.
This page explains the excise duty mechanism, the groups of products covered, the logic of the fiscal warehouse and the suspension regime, then moves on to the mineral rent and gambling, which are two other duties with separate administration. The specific rates are derived from the relevant acts applicable to your case.
Read also: National taxes affecting business, fuels, vehicles, and packaging.
Excise duty is a tax on the consumption of specified categories of products, linked to the quantity of the product rather than to its market value. The obligation arises when the product is produced domestically or imported, and becomes payable when the product is withdrawn for consumption in the territory of the Republic of Albania.
The administration is carried out by the General Directorate of Customs, which maintains the register of excise taxpayers, authorizes warehouses, and controls the movement of products. This separation has a direct consequence, because the deadlines, forms, and payment system are different from those of taxes.
Excise duty versus tax obligations
| The issue | Excise | VAT and income tax |
|---|---|---|
| Basic Act | Law 61/2012 | Laws 92/2014 and 29/2023 |
| Institution | General Directorate of Customs | Tax Directorate |
| The basis of the obligation | Amount of product per unit | Transaction value |
| Where is the status being tracked? | In the customs system | In e-Filing |
| Consequence of an open obligation | Subsequent customs clearance is blocked | Forcible assembly measures |
This table is why excise duty requires special monitoring. A business that only checks its tax status thinks it's fine, while the next shipment gets held up at customs over a liability it didn't see on the screen.
The excise law covers specified groups of products listed under Combined Nomenclature codes. In Albanian business practice, they are divided into five families.
✔ Energy products, i.e., oil, gasoline, gas, and lubricants
✔ Tobacco and tobacco products, including heated tobacco products and e-cigarette liquids
✔ Alcohol and alcoholic beverages, beer, wine, and distilled spirits
✔ Refreshing and energy drinks, according to the categories listed in the law
✔ Other groups explicitly defined in law, such as plastic packaging and bags
Tariff classification is the point where the most frequent disputes arise. The same product with the same commercial description can fall under two different codes, and the code determines whether excise duty is due and at what rate.
The full list of products and excise duty rates by product and by unit must be verified. They are set out in Law No. 61/2012, as amended, in its annex and in the implementing acts of the General Directorate of Customs.
The logic of excise duty is based on a single principle: the duty follows the product and becomes payable only when the product is released for consumption. This principle is implemented through the fiscal warehouse.
A fiscal warehouse is a customs-authorized location where excisable goods are produced, processed, or stored without the excise duty being paid. The entity operating it, known as an approved depositor, keeps records of quantities, reports movements, and typically secures the potential liability with a guarantee.
The product can be moved from one fiscal warehouse to another without paying excise duty, because the liability remains suspended until the product is released for consumption. The benefit is significant for liquidity, since cash is not tied up in inventory, while the condition is a strict reporting and control system.
For a business that imports excisable goods without being an approved bonded warehouse, excise duty is payable at the time of clearance. In this case, it is immediately charged to the inventory cost, so the sales margin must be calculated on the cost including excise, not on the supplier's price.
Excise duty is a cost element in import, so it is included in the base on which VAT is calculated at customs. The effect is twofold, because excise duty increases the cost of the goods and at the same time raises the VAT paid on import.
For a business that deducts VAT, the second effect is temporary, because import VAT is deducted on the period's return. Excise duty, by contrast, remains a permanent cost and is passed on to the customer only through the price.
Read also: VAT on imports and exports, customs regimes.
The mineral rent is a tax on the value of the mineral extracted and sold, provided for in Law No. 9975/2008, as implemented by Government Decree No. 7/2012. It is not calculated on profit, so it is due even when the mining activity ends the year with a loss.
The base is the mineral's value, determined by reference prices rather than by the contract price. Reference prices are set by decisions of the AD-HOC Commission, and this is the element that changes most often during the year.
For mining and hydrocarbon entities there is also a second obligation arising from the income tax law. According to Article 55 of Law No. 29/2023, a change in ownership, whether indirect or direct, of over 20% constitutes a taxable event; notification must be made within 45 days, and the obligation to notify arises from a 10% change in ownership.
For hydrocarbon activities, the special regime of Law No. 153/2020 and Instruction No. 6/2022 applies. This regime has its own rules for recognized costs and for calculating liabilities, so it is not to be interpreted according to ordinary business logic.
The mineral royalty percentages by mineral groups are found in the annex to Law No. 9975/2008 and in Government Decree No. 7/2012, together with the latest decision of the AD-HOC Commission on reference prices.
Gambling activities are regulated by Law No. 155/2015, as amended by Law No. 18/2024, and are licensed and supervised by the authority responsible for this field. In addition to the licensing requirements, there are two tax provisions that also apply to individuals.
First, gambling winnings are taxed at 15%, pursuant to Article 60 of Law No. 29/2023, under the chapter on inheritance, gifts, and gambling.
Secondly, payments for gambling games are subject to withholding tax at the source, pursuant to Article 58, at the rate of 15% under Article 59. The operator withholds the tax and reports it, while the winner receives the net amount.
Read also: When 15% tax is withheld at source and how it is reported..
When a business deals with excisable products, a mere tax audit is not enough. Proper operation requires following a set of fixed steps.
✔ Check the status of your obligations in the customs system before each new shipment.
✔ Confirm the product's tariff classification before import, because the code determines the excise duty.
✔ Keep documentation of movements and quantities, because customs control starts with the records.
✔ Record the excise tax paid within inventory cost, not as a period expense.
✔ Review the rates after each fiscal package, because the excise annex is often affected.
Customs duties are required in e-Filing, where they do not appear, and are only detected when a customs clearance is blocked.
The excise duty paid on import is not included in inventory costs, and the margin is distorted.
The tariff classification is taken from the foreign supplier's invoice, without verifying the code against the Albanian nomenclature.
The company believes that the fiscal warehouse removes the duty, whereas it only suspends it until the product is released for consumption.
The mineral rent is calculated at the contract price, with reference to the decision of the AD-HOC Commission.
Ownership changes in mining and hydrocarbon entities are not reported within 45 days.
The gambling operator pays the winner the gross amount and forgets to withhold tax at source.
The excise tax rates are taken from old web pages, while the annex has been changed by the fiscal package.
The General Directorate of Customs, pursuant to Law No. 61/2012. Excise duty is not declared on e-Filing and does not appear in the business's tax status.
Energy products, tobacco, alcohol, beverages listed in the law, and other explicitly defined groups, identified by nomenclature codes. The full list can be found in the annex to Law No. 61/2012.
A customs-authorized bonded warehouse where excisable goods are manufactured, processed, or stored without payment of excise duty. The liability remains suspended until the goods are released for consumption.
At the time of customs clearance, when it does not have approved depositor status. Excise duty is immediately charged to inventory costs and included in margin calculation.
According to established practice, yes, because excise duty is an element of cost in import. The exact provision of Law No. 92/2014 on the taxable value in import is verified before publication.
On the value of the mineral, pursuant to Law No. 9975/2008 and Government Decree No. 7/2012, based on the reference prices established by decisions of the AD-HOC Commission, not the contract price.
Yes. According to Article 55 of Law No. 29/2023, notification must be made within 45 days, and the obligation to notify arises as soon as the ownership change reaches 101 TP 3T, while any change above 201 TP 3T constitutes a taxable event.
15%, pursuant to Article 60 of Law No. 29/2023. The operator withholds the tax at source, in accordance with Articles 58 and 59, and the winner receives the net amount.
Because they apply to annexes that are affected by almost every tax package, and an outdated rate produces incorrect calculations. In your specific case, the applicable rate is taken from the official text and dated.
Law No. 61/2012 “On Excise Duties in the Republic of Albania,” as amended, administered by the General Directorate of Customs, together with the annex of products and the implementing customs regulations.
Law No. 9975, dated July 28, 2008, “On National Taxes,” as amended, on the mineral rent
Government Decree No. 7, dated January 4, 2012, on the mining rent, together with the decisions of the Ad Hoc Commission on reference prices.
Law No. 153/2020 and Directive No. 6/2022, on hydrocarbon activities
Law No. 155/2015 “On Gambling,” as amended by Law No. 18/2024
Law No. 29/2023 “On Income Tax,” as amended, Articles 55, 58, 59, and 60