european-union tax-law alcohol biosafety
Why is research grade ethanol seemingly exempted from excise duties while pure ethanol ment for consumption isn&#39;t?
<p>At <a href="https://www.sigmaaldrich.com/" rel="nofollow noreferrer">Sigma-Aldrich</a> I can buy <a href="https://www.sigmaaldrich.com/NL/en/product/mm/818760?dclid=CLuHvemp04ADFU_KuwgdoKIHgw" rel="nofollow noreferrer">one liter of unadulterated ethanol</a> for just 26.60 EUR. This ethanol contains no additives and is pure enough for analytical purposes. Its made by fermenting grain or sugarcane. The solution contains 95.5% ethanol.</p>
<p>However, when I try to buy the same amount of consumer grade ethanol, then I suddenly have to <a href="https://www.heliosholland.com/Alcohol-96-1-liter" rel="nofollow noreferrer">pay 73.63 EUR</a> because of excise duties. This is strange because the research grade ethanol from Merck is about as pure as the consumer grade one.</p>
<p>In the EU <a href="https://taxation-customs.ec.europa.eu/denatured-alcohol-not-human-consumption_en" rel="nofollow noreferrer">pure ethanol is only exempt from excise duties when it is denatured in some way</a> but the ethanol sold by Merck / Sigma-Aldrich doesn't seem to be denatured in any way. It is not marketed as a biofuel either. Its an ethanol solution that's nearly as pure as the consumer grade ethanol but it somehow is still exempt from excise duties. Why is that?</p>
<p>EDIT:</p>
<p>Apparently the website can show different prices depending on the country you live in. Here's a screenshot of the prices I'm seeing. I live in the Netherlands.</p>
<p><a href="https://i.stack.imgur.com/bYEx2.png" rel="nofollow noreferrer"><img src="https://i.stack.imgur.com/bYEx2.png" alt="enter image description here" /></a></p>
<p>Here's the price at checkout. Some tax is added but I don't think its excise duty related. The total price is still far lower then the price you pay for consumer grade ethanol.</p>
<p><a href="https://i.stack.imgur.com/vtWFh.png" rel="nofollow noreferrer"><img src="https://i.stack.imgur.com/vtWFh.png" alt="enter image description here" /></a></p>

<h2>Because there’s an exemption</h2>
<p>Which requires denaturing.</p>
<p>But there’s also an exemption to the exemption for when denaturing is not appropriate. Such as for laboratory use.</p>

<h2><a href="https://www.belastingdienst.nl/wps/wcm/connect/bldcontenten/belastingdienst/customs/excise_duty_and_consumer_tax/excise_duty_and_consumer_tax/exemption_from_excise_duty_andor_consumer_tax/" rel="nofollow noreferrer">Medical or Lab Alcohol are taxed differently</a></h2>
<p>For the excise tax, some alcohols are not counted, as the government (Customs Administration of the Netherlands, Ministry of Finance) themselves say:</p>
<blockquote>
<p>Excise goods</p>
<p>Under certain conditions, you can be exempted from excise duty. Examples include:</p>
<ul>
<li>ethyl alcohol not intended for internal use by humans</li>
<li>ethyl alcohol used for manufacturing medicines</li>
</ul>
</blockquote>
<p>Those two exceptions cover all laboratory alcohol, including non-denatured spirits.</p>
<p>Also, do note the little yellow checkmark at the end of the shopping item: to buy (and import) that alcohol for the reduced tax rate, you need to prove to the seller, that you buy it for those excise-tax-exempt reasons such as laboratory work and not to create, for example, your own Limoncello by soaking lemon peel in it.</p>
