Tobacco tax is an excise tax levied on tobacco products and tobacco equivalent goods (substitute products). Goods subject to tobacco tax are, for example: Cigars or cigarillos Cigarettes smoking tobacco (fine-cut and pipe tobacco, water pipe tobacco) heated tobacco tobacco waste Products subject to tobacco tax are defined as follows: Cigars or cigarillos Cigars or cigarillos are rolls of tobacco intended and suitable for smoking, wrapped in a wrapper or in a wrapper and a binder. The rolls of tobacco must be made entirely of natural tobacco have an outer wrapper of natural tobacco, or be filled with cracked mixed tobacco and have an outer wrapper of normal cigar colour made of reconstituted tobacco which completely envelops them (where appropriate, the filter but not the mouth-piece may also be wrapped) have a unit weight (= average weight of 1,000 pieces without filter and mouthpiece at the time of taxation) of not less than 2.3 grams and not more than 10 grams have a circumference of 34 millimetres or more over at least one third of their length. Cigarettes are rolls of tobacco which are are suitable for smoking directly and are not cigars or cigarillos as described above are inserted into a cigarette paper tube by a simple non-industrial process, or wrapped in a sheet of cigarette paper by a simple non-industrial process. Smoking tobacco (fine cut and pipe tobacco). Smoking tobacco is the generic term for fine-cut and pipe tobacco and is tobacco cut or otherwise shredded or spun or pressed into slabs suitable for smoking without further industrial processing. is not limited to finished products, but also includes tobacco processed and suitable for smoking as a precursor, semi-finished or intermediate product. You can distinguish whether smoking tobacco is fine cut or pipe tobacco by the following characteristics. Fine cut has tobacco parts that are 25 percent of their weight less than 1.5 millimeters long or wide, contains smoking tobacco intended for the manufacture of cigarettes, for example, according to the inscription on the sales packaging or other enclosed documentation are used by consumers to make their own cigarettes. Pipe tobacco is smoking tobacco which cannot be classified as fine-cut. Water pipe tobacco Water pipe tobacco is classified as pipe tobacco even if its tobacco parts meet the size requirements for fine cut. Heated tobacco ("heat-not-burn" products) Heat-not-burn tobacco products are strands of tobacco (also called "tobacco sticks") surrounded by an aluminium paper composite and consumed by means of an electronic device. Heated tobacco is classified as pipe tobacco. On the other hand, tobacco sticks that are not wrapped in an aluminium paper composite and can therefore be smoked directly like cigarettes are classified as cigarettes for tax purposes. Tobacco waste Tobacco refuse is smoking tobacco if it is suitable for smoking put up for retail sale and are not cigars, cigarillos or cigarettes as described above. Tobacco refuse means the remains of tobacco leaves, and by-products resulting from the processing of tobacco or from the manufacture, treatment or processing of tobacco products. Goods assimilated to tobacco products (substitute products) Such goods consist wholly or partly of substances other than tobacco, e.g. "herbal cigarettes", "smoke pastes", "water pipe wadding" or "vapour stones". As a rule, tobacco tax arises as soon as the above-mentioned tobacco products enter the economic cycle in the German tax territory. This is the case when you have taken tobacco products from a tax warehouse without a further tax suspension procedure. you have consumed tobacco products in the tax warehouse, you have received tobacco products as a registered consignee in your business. A registered consignee is a person who has a permit to receive excise goods on his premises after a movement under duty suspension. You manufacture tobacco products without a permit from the main customs office, you supply tobacco products to persons without a permit for the tax-exempt commercial use of tobacco products. you hold tobacco products from the tax-free circulation of another Member State for commercial purposes, or you import tobacco products from a third country or third territory. The amount of tax is calculated on the basis of the relevant tax scale, the quantity and the value (retail selling price) of the tobacco products concerned.