Accounting for companies whose business involves alcohol (whether production, distribution, or sales) has its specifics and special obligations. This is a fairly complex topic, but it is best approached as a whole. We have therefore prepared this comprehensive article for you.

If you are operating in the field of alcohol production, distribution, or sales, the most important areas you need to focus on are outlined below.

 

Doing business with alcohol on the Czech market

Excise tax

• Key aspect: Alcoholic beverages, including so-called still wine, are subject to excise duty. This means companies must be registered as excise duty payers for spirits, beer, and all other alcoholic beverages or intermediates. Other products subject to excise duty include, for example, tobacco products and mineral oils.
• Records and payment: It is essential to keep accurate records of purchases, sales, and inventory of alcoholic beverages and to pay excise duty properly and on time. Even for still wine, which is subject to a zero rate of excise duty, record-keeping is mandatory.
• Tax warehouse: Manufacturers and large distributors may need to operate a tax warehouse. In such cases, record-keeping and the tax regime have additional specifics.
• Purchasing from the EU: Further obligations may arise when purchasing alcohol and beer from other EU Member States. Typically, this involves registering the company as a “registered consignee” and arranging excise duty security.

 

Spirits labelling

• Excise stamps: Hard alcohol (spirits) sold in the Czech Republic must be labeled with what is known as an excise stamp, similar to tobacco products. Companies handling spirits must ensure that each bottle is marked with this stamp.

 

Registration and licenses

• Food Inspection Notification: For retail operators of spirits, there is a notification obligation to the State Agricultural and Food Inspection (SZPI).
• Trade license: To sell fermented alcohol, consumable spirit, and spirits, a specific trade license (concession) under the Trade Licensing Act is required. For the sale of other alcoholic beverages (such as beer or wine), no concession is needed. However, it is always recommended to check whether your assortment falls within this obligation, which can be quickly answered by the relevant trade office, thus avoiding administrative penalties.

 

VAT

• Monitor current statutory rates: According to current legislation (as of August 2025), all alcoholic and non-alcoholic beverages consumed in restaurants or sold packaged (to-go) are subject to the standard VAT rate. The only exception is pure tap water served in a glass in restaurants. Caution: a carafe or glass of water garnished with mint or a slice of lemon is considered a non-alcoholic beverage, not pure water, and is therefore also subject to the standard VAT rate (21%).
• Beware of promotional items: Gifts or promotional items containing alcohol are not tax-deductible expenses, and VAT deduction cannot be claimed (except for still wine). For still wine, VAT deduction applies only up to 500 CZK excluding VAT per bottle (and packaging) and if the bottle or packaging (gift bag, box, etc.) is labeled with the company’s name or logo. However, even still wine as a gift is not a tax-deductible expense.

 

Accounting and tax records

• Maintaining accurate records: Due to the specifics of excise duty and labelling, it is essential to keep very accurate and detailed records of all alcohol movements within the company.
• Inventory: Regular and meticulous inventory of alcohol stocks is critical for correct reporting and compliance.
• We recommend using adequate software: Suitable accounting software that allows easy recording of specific taxes and product categories can make your work much easier. For restaurants and hotels, there are specialized POS systems that connect to accounting and can partially or fully automate these agendas.

 

Other obligations

• EET (if reintroduced): If electronic sales recording (EET) is reinstated, companies selling alcoholic beverages will be obliged to record their sales again.
• Hygiene regulations: Strict hygiene standards apply to companies handling food and drink (regardless of alcohol content). Do not underestimate these requirements.

 

Recommendation

Given the complexity and specific obligations associated with alcohol, we strongly recommend working closely with an accountant or tax advisor who has experience with companies in this sector. Qualified advice from a professional will help you comply with all legislative requirements and minimize the risk of errors and subsequent penalties.

 

Doing business with alcohol abroad

Selling alcohol to other countries is more complicated due to different tax and customs regulations. In this section of the article, we offer an overview of the key aspects that primarily concern excise tax and VAT when selling alcohol within the EU and beyond.

 

Selling alcohol to EU countries

Excise tax

• Payment of excise tax: Excise tax is generally paid in the country where the alcohol is consumed (the country of destination).
• Conditional exemption regime: This regime allows, among other things, the circulation of certain products without excise tax until they are delivered for final consumption. Given the possibility of tax evasion, it is necessary to ensure that the movement of untaxed goods is under administrative supervision. The aforementioned tax warehouses serve this purpose.
  • Taxpayer: In the above case, the recipient of the goods (the entrepreneur) pays the excise tax in the country of destination. They must have the relevant permit from their tax administrator in that member state and are obliged to declare and pay the tax.
  • Documentation: The transport of goods subject to excise tax under the conditional exemption regime takes place with an electronic administrative document (eAD) in the EMCS (Excise Movement and Control System).
• Distance sales to consumers: Selling alcohol directly to end consumers in other EU member states (e.g., through e-shops) is even more complex.
  • Shipping: Alcoholic beverages sold in this way are not exempt from excise tax.
  • Taxpayer: Excise duty is paid in the country of consumption, i.e., the target EU country.
    • Therefore, a Czech business sending alcohol directly to end consumers (e.g., via e-shop) in another EU Member State is required to register for excise duty in the country of the consumer and to pay the duty there.
    • The Czech sender either appoints a tax representative in the destination country or registers themselves for excise duty there and pays the relevant taxes.
    • Without these procedures, mail order sales of alcohol to end consumers in other EU countries are illegal.
  • Proof of tax payment: It is necessary to prove the payment of excise tax in the country of destination, for example, with an invoice, tax document, or the number of the local tax representative.

 

Alcohol labelling

• Alcohol labelling is governed by the legislation of the destination country.
• The goods do not need a Czech excise stamp, but must comply with the labelling or marking requirements prescribed by the destination country.
• Additionally, the shipment must be correctly labeled with a commercial invoice, product description, quantity, alcohol percentage, HS code, origin, and so forth.

 

VAT

• Sale to businesses (B2B): If you are a VAT payer in the Czech Republic and sell alcohol to another VAT payer in another EU member state, from a VAT perspective, this is a supply of goods to another member state.
  • VAT rate: This supply is exempt from VAT in the Czech Republic with the right to deduct. However, you must verify the recipient’s VAT number and have documents proving the transport of the goods to another member state (for example, a bill of lading, an invoice for transport).
  • Taxpayer: VAT is then paid by the recipient in the country of destination (so-called reverse charge).
• Sale to final consumers (B2C – distance selling):
  • Threshold of EUR 10,000: If the annual turnover from distance sales to consumers in other EU countries exceeds EUR 10,000 (including the immediately preceding year), the seller must register for VAT in the EU and sell with the VAT rate of the country to which the goods are sent.
  • OSS (One Stop Shop): This regime allows for the payment of VAT to other Member States via one selected tax office in the home country, avoiding the need to register in each country individually.
  • Turnover below EUR 10,000: If turnover remains below this limit, Czech VAT rules apply (if registered, CZ VAT is charged).

 

Selling alcohol to countries outside the European Union (third countries)

Excise tax

• Tax exemption: Exports of excise goods from the EU to third countries are usually exempt from excise tax in the country of dispatch.
• Taxpayer: The excise tax (if applicable) and any customs duties are paid by the recipient in the importing country.
• Documentation: To prove export and exemption from excise duty, proper customs documents are required (export declaration confirming EU exit).

 

VAT

• Export of goods: Sales of alcohol to countries outside the EU are VAT-exempt in the Czech Republic with the right to input VAT deduction.
• Taxpayer: VAT is not charged on the export of goods from the EU. VAT and any customs duties are charged and payable in the country of import, where the goods are consumed by the final consumer. The taxpayer is thus the entrepreneur (the recipient of the goods) in the country of consumption
• Proof of export: To apply VAT exemption, proof must be provided that the goods actually left the EU.
  • A confirmed export customs declaration (for example, IE-599), transport documents, an invoice to the foreign partner, or other relevant documents are considered standard proof. Without these documents, the tax office can reassess the VAT on the related sale.
  • Without proving the above, the sender of the goods may also lose the right to a VAT refund paid in connection with the sale abroad. The mentioned claim relates to VAT paid on inputs (i.e., VAT on purchased input services or materials) in the Czech Republic.

 

General recommendation

International alcohol trading is very complex and subject to specific rules in every country. It is vital to consult every case with a customs and tax advisor specializing in international trade and excise duties. Mistakes can lead to high fines and further complications.

 

Customs Office Reporting

In the case of alcohol (goods subject to excise tax) and its export outside the Czech Republic, reporting to the customs office (Czech Customs Administration) in the Czech Republic is always mandatory.

Here we offer an overview of how reporting to the Czech customs office works:

 

1. When to report to customs

Reporting to the customs office is necessary in several key situations, which we list below.

• Import: Whenever goods (including alcohol) enter the customs territory of the EU from a third country (a country outside the EU).
• Export: Whenever goods (including alcohol) leave the customs territory of the EU to a third country.
• Excise tax: Reporting is also necessary in the case of the movement of goods subject to excise tax (such as alcohol) under a duty suspension regime, even within the EU. This includes registration in the EMCS system.
• Special regimes:
  • Storage under customs supervision (customs warehousing): Reporting is also submitted when goods are placed in a customs warehouse or removed from a customs warehouse.
  • Inward/Outward processing: Goods that are being processed under customs supervision are also reported.
  • Transit: Reporting is also necessary for goods transported through the customs territory of the EU under a customs transit regime (i.e., a situation where these goods have not yet been released for free circulation).
  • Temporary admission: This regime allows for the temporary export of goods from the EU (for example, for exhibitions, repairs, or other temporary purposes), where the goods are returned to the EU without the need to pay customs duties or taxes, provided the condition of re-import within the prescribed period is met.
• Intrastat (for statistical purposes): Although not a direct customs declaration for duties, Intrastat is a statistical system for reporting the movement of goods between EU member states for entities registered for VAT above a certain threshold. The report is submitted to the customs administration.

 

2. How to report (how to submit a report)

The main way to submit reports to the customs authorities in the Czech Republic is electronic.

a) Electronic Customs Declaration

• e-Customs system: Most customs declarations are submitted electronically via the e-Customs system (or the newer ICS2-Import Control System 2 – for processing so-called security data).
• Single Administrative Document (SAD): A standard EU form used for declarations. Although the form is physical, the data is submitted electronically (via specialized software, customs administration systems, or via so-called customs declarants).
• Software: Companies submitting customs declarations directly must have specialized software that is compatible with the systems of the Czech Customs Administration (for example, software from companies LCS, T-SOFT, Raab, and others). This software allows the completion of all necessary data and its submission.
• User account: To access these systems and submit declarations (on your own), it is usually necessary to have a valid certificate and registration with the Czech Customs Administration.

 

b) EMCS (Excise Movement and Control System)

• For alcohol and other excise goods in the EU: For the movement of alcohol and other products subject to excise tax under a conditional exemption regime, the EMCS system is used for reporting between EU member states.
• eAD (electronic administrative document): The sender generates and sends an eAD via EMCS. This document tracks the movement of goods and serves as proof that the goods have arrived at the recipient in another member state, who is obliged to pay the excise tax for them.
• Confirmation of receipt: The recipient in the destination country confirms the receipt of the goods in the EMCS system, which terminates the conditional exemption regime and confirms to the sender that the obligations have been fulfilled.

 

c) Intrastat

• Electronic data collection: Data for Intrastat is also reported electronically, either directly via the web form on the Czech Customs Administration’s website (for smaller volumes) or via special software (for larger data volumes), typically InstatEvo.
• Monthly reports: The report is submitted monthly for the previous month, either for “dispatch” (export to the EU) or “receipt” (import from the EU).

 

3. Key information for reporting

The following data are essential for a correct customs declaration.

• Identification data: Fill in the data relating to the sender, recipient, and carrier accurately.
• Description of goods: Provide the exact name, quantity, and weight.
• Combined Nomenclature code (HS code / Taric code): This is an international system for numerical coding of goods that determines the customs tariff and any restrictions. For alcohol, its inclusion is especially important (beer, wine, and spirits have their specific codes).
• Country of origin: State where the goods were manufactured.
• Value of goods: State the customs value of the goods. It is usually determined as the sum of the purchase price and the costs of transport and insurance to the EU border.
• Delivery terms (Incoterms): These terms, for example, EXW, FOB, CIF, or DDP, affect who pays the costs and risks.
• Type of customs regime: State whether it is an import, export, transit, free circulation, etc.

 

Conclusion

Given the complexity of this issue, our article did not go into greater detail. A detailed view could easily fill a whole book. The purpose of this text was only to provide a basic overview of the obligations. If the issue concerns your business, we strongly recommend regular consultations with specialists in customs procedures and the affected taxes.

We also consider it reasonable for the employee in your company who is in charge of this issue to undergo adequate training (topics such as tax procedure, excise taxes, VAT in cross-border transactions, taxation in relation to foreign countries, Incoterms, foreign trade from the perspective of customs regulations, customs declarant minimum, Intrastat, and the like).

We will also be happy to offer you a helping hand in this and related issues at Jaspar. We have extensive experience with the accounting and taxes of companies trading in alcohol. See for yourself in our overview of case studies, or contact us directly.