What is Excise Duty? — Special tax on certain products
Excise duty is an indirect tax paid on the production or import of certain goods — petroleum products, alcoholic beverages, tobacco products and luxury goods.
Definition
Excise duty is an indirect tax paid on the production or import of certain goods — petroleum products, alcoholic beverages, tobacco products and luxury goods.
Details
Paid in addition to VAT (VAT is calculated on price + excise). Excise is a fixed amount per unit (e.g. MKD/liter for fuels, MKD/pack for cigarettes). Excise payers maintain separate records and file monthly excise returns. Excise is an expense for the business (if not a trader in excisable goods).
Example
You buy diesel for the company vehicle: pre-tax price 60 MKD/L + excise 12.5 MKD/L = 72.5 MKD/L + VAT 18% = 85.55 MKD/L. For the business, VAT is deducted and the total purchase price is an expense.