The excise tax on vaping and nicotine in your online store: how it works

If you sell e-cigarette liquids or nicotine pouches, the price of each reference no longer depends only on your margin: it carries an excise tax that changes with the volume, the nicotine concentration or the weight. Two combinations of the same product can carry different amounts.

This guide explains the mechanism. We deliberately do not give figures for the rates: they change by law and the prudent thing is always to take them from the regulation in force or from your accountant.

What the tax applies to

Spain's Law 7/2024 created the tax on e-cigarette liquids and other tobacco-related products, within the excise duties on manufacturing. Broadly speaking, it applies to:

• E-cigarette liquids, with or without nicotine, by volume. The rate depends on the nicotine concentration: there is one heading for nicotine-free or low-concentration liquids and another for higher-concentration ones.
• Other nicotine products that are not tobacco, such as nicotine pouches, by weight.

The tax is declared using Modelo 573 (the Spanish return for this excise tax), organised by headings.

Who pays it in and who passes it on

Like other excise duties on manufacturing, the tax becomes due when the product leaves the factory or tax warehouse, or when it is imported. There are different roles in the chain:

• Manufacturers, tax warehouse keepers and importers: they pay the tax in and file the returns.
• Distributors and stores that buy the product with the tax already due: they receive it passed on in the purchase price and pass it on in their selling price.

The excise tax and VAT

Excise duties form part of the VAT tax base (article 78 of the Spanish VAT Law). In other words: first the excise tax is added to the price, and VAT is calculated on the total. If your store calculates VAT on the price without the excise tax, you are undercharging.

Why it has to be calculated per combination

In a vape store it is usual to have a product with several combinations: bottle sizes, nicotine concentrations, number of units per pack. Each has a different volume and concentration, so each combination carries its own amount. A single price per product does not work.

The data you need per reference are:

• Volume in millilitres (liquids) or weight in grams (nicotine products).
• Nicotine concentration, to know which heading the liquid falls under.
• Units per pack, if you sell packs.

With that, the tax amount for each line is calculated. You also need to decide on the rounding (per unit or per line) and always apply it the same way: cent differences accumulated over a month end up not matching the return or the supplier's invoices.

What the customer must see

Consumer law requires the price displayed to be the final price, with all taxes included. The excise tax cannot appear as a surprise charge at the last step of the checkout. The sensible approach is:

• Include it in the price on the product page and, if you wish, show how much corresponds to the tax.
• Show it the same way in the cart and in the order summary.
• Reflect it on the invoice, so that professional customers can reconcile.

Common mistakes

1. A fixed amount per product when the combinations have different volumes or concentrations.
2. Calculating VAT before adding the excise tax.
3. Assigning the wrong heading to a liquid because the concentration is not on the product page or is in another unit.
4. Forgetting packs: a pack of five bottles carries five times the tax.
5. Not having a monthly summary by heading your accountant can work with, whether for the return or to reconcile what your suppliers have passed on.
6. Taking the rates from an old template for granted. If the law changes the rates or the concentration threshold, you need to be able to change them without touching code.

Checklist

• Confirm with your accountant your role in the chain and whether you have to file Modelo 573.
• Fill in the volume, concentration or weight of each combination.
• Assign the heading to each reference and check it with your supplier.
• Check on a test order that VAT is calculated on the price including the excise tax.
• Produce a monthly summary by heading and compare it with the purchase invoices.

Frequently asked questions

Do devices and coils carry this tax? The tax applies to liquids and nicotine products, not to the device itself. If you sell kits that include liquid, the liquid part does carry it. Check with your accountant how to treat each pack.

Are nicotine-free liquids also taxed? Yes: the tax applies to e-cigarette liquids with or without nicotine, with a different heading depending on the concentration.

Can I sell to other EU countries with this tax? Excise duties are governed by the country of consumption. Distance sales of excise goods to other Member States have their own rules, often with a tax representative at destination. Removing the Spanish tax is not enough: get advice before opening those destinations.

What do I do if the rates change? Update the configuration on the exact day the change comes into force, and check that day's orders. That is why it is important that the rates are not written into the store's code.

How to handle it in PrestaShop

PrestaShop has no taxes by volume or by concentration. RKR Vape & Nicotine Excise Tax calculates the tax per product and per combination with the tax's four headings (0L1, 0L2, 0L3 and 0L4), shows it on the product page, cart and invoice and, if you need it, charges it with its VAT. The rates, the nicotine threshold and the rounding can be changed in the configuration in case the regulations change, and every month it gives you the summary by heading for Modelo 573, ready for your accountant.

This article is for information only and does not replace tax advice. For a specific case, consult your adviser.