On February 13, 2023, a new directive did overhaul the general excise regime in the European Union.

This directive, Council Directive (EU) 2020/262, will replaced Directive 2008/118/EC.

The main changes introduced by the new directive

The dematerialization of the Simplified Accompanying Document (SAD) for the circulation of duty paid products and the maintenance of tax representation in distance sales.

The SAD is a paper document that is currently required for the circulation of duty paid products within the EU. However, as of February 13, 2023, this document will be replaced by a simplified electronic administrative document (SEAD). This will allow for the dematerialized sending, monitoring, and control of this formality, which is expected to facilitate movements between professionals in B2B transactions.

In terms of distance sales, which are sales to private customers (B2C), the new directive still allows for the appointment of a tax representative. This means that businesses that sell goods or services to private customers in other EU countries can appoint a tax representative in those countries to handle their VAT obligations.

The new directive is expected to simplify and streamline the excise duty regime in the EU, which will benefit businesses and consumers alike.

Maintaining tax representation in distance sales

In terms of distance sales, which schematically concern sales to private customers (B2C), they are now defined in Article 44 of Directive (EU) 2020/262. For the latter, the directive still advices the appointment of a tax representative in order to support professionals with their formalities related to their activity, especially to guarantee the payment of excise duties, but also to keep trakc of the product deliveries.

Creation of new statutes

This reform created new excise statutes:

• Certified consignor status (« EC ») ; 
• Certified consignee status (« DC »). 

The certified consignor is thus defined in article 3 of the directive as “a natural or legal person registered with the authorities of the Member State of dispatch in order to dispatch products subject to excise duty released for consumption in the territory of one Member State and then moved to the territory of another Member State.”

In the same article, the certified consignee is defined as “a natural or legal person registered with the authorities of the Member State of destination in order to receive goods subject to excise duty for consumption in the territory of one Member State and then introduced into the territory of another Member State.”

These two statutes will complement the existing statutes established by the European Union. Additionally, an operator who has been granted the status of authorized warehouse keeper ("AWK") may, with the prior approval of the customs office to which they are attached, act as a certified consignor and/or a certified consignee.

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