Sparkling wine tax

Various bottles of sparkling wine (champagne) that are subject to taxation

The sparkling wine tax (also called sparkling wine tax ) is a federal tax in Germany and Austria .

Sparkling wine tax in Germany

Published in the Reichsgesetzblatt (RGBl.) On May 15, 1902

In Germany it counts to the consumption taxes according to § 1 Abs. 1 SchaumwZwStG . It applies generally to sparkling wine , but also to other spirits with a certain alcohol content and depends on the filling quantity.

The current legal basis for the sparkling wine tax is the Sparkling Wine and Intermediate Product Tax Act (SchaumwZwStG).

history

The sparkling wine tax was introduced by the Reichstag in 1902 to finance the imperial navy , because "with such a strong increase in expenditure on the country's military strength, the sparkling wine must also be used". The resolution of the Sparkling Wine Tax Act by the Reichstag took place after three deliberations at the meeting on April 26, 1902. It was published on May 15, 1902 (RGBl. Page 155) and came into force on July 1, 1902. 50 pfennigs were added to the average price of 2.50 marks at the time.

The income from the sparkling wine tax could only cover a very small part of the armaments expenditure of the empire:

year	population	Army issues	Marine issues	Total armaments expenditure	Number of champagne bottles	Sparkling wine tax revenue at 0.5M per bottle	Percentage of armaments expenditure covered by the sparkling wine tax
1905	60.6 million	697 million M	231 million M	928 million M	11 million	5.5 million M	0.59%
1910	64.9 million	831 million M	426 million M	1,257 million M	unknown	unknown	unknown
1913	67.5 million	1009 million M	467 million M	1,476 million M	unknown	unknown	unknown

The tax was reduced to zero in 1933 as a measure to overcome the economic crisis , but not abolished. In 1939 it was reactivated in the form of a war surcharge, especially for the development of the submarine fleet . With the founding of the Federal Republic of Germany in 1949, responsibility and income were transferred to the federal government.

The sparkling wine or sparkling wine tax is a well-known example of taxes that were introduced for a specific purpose but not abolished after the purpose was discontinued.

Tax object

Sparkling wines in bottles with sparkling wine stoppers and holders
Beverages that have a carbon dioxide-related overpressure of 3 bar at +20 ° C and are classified under items 2204, 2205 or 2206 of the customs tariff. This includes:

2204 : Wine made from fresh grapes, including fortified wine and grape must, other than those of heading 2009, d. H. not fermented, without the addition of alcohol.
2205 : Vermouth and other wines made from fresh grapes that have been flavored with plants or other substances
2206 : Other fermented drinks such as cider, perry and mead.

Tax rates and tax revenue

The tax rates are (as of August 2018)

with less than 6 percent alcohol by volume € 51 / hl (= € 0.38 / 0.75 l),

From 6 percent alcohol by volume € 136 / hl (= € 1.02 / 0.75 l).

The income from the sparkling wine tax amounted to 449 million euros in 2013. In 2019, sales of 320.8 million liters of sparkling wine generated tax income of 377 million euros. The federal government is entitled to the revenue according to Article 106, Paragraph 1, No. 2 of the Basic Law . The sparkling wine and intermediate product tax is already levied by the Federal Customs Administration at the manufacturer, at downstream levels of trade or at the importer .

Sparkling wine tax in Austria

In Austria, the sparkling wine tax was set to zero in 2005. On March 1, 2014 the sparkling wine tax was reintroduced and amounts to one euro per liter. The exception is the Prosecco Frizzante - this counts as wine for tax purposes (due to the lower bottle pressure). The government program presented at the beginning of 2020 once again provides for the abolition of the popularly known “champagne tax”.