Starting a business for importing and trading electronic cigarettes in Bulgaria is a process that requires in-depth knowledge of the legislation and regulations in the country. As an accounting and consulting firm Elan Consulting, we are here to answer all your questions and provide you with the information and support you need to successfully start and manage your e-cigarette business. We often receive inquiries from customers regarding various aspects of this business. For example, “What are the requirements for the sale of electronic cigarettes?” and “What documents are needed to obtain a cigarette license?”.
Other frequently asked questions include “How much does a cigarette license cost?” and “How much does an alcohol and cigarette license cost?”, which is important to know for cost planning. Our customers also ask about “Requirements for the sale of electronic cigarettes” and “How is excise tax calculated on cigarettes?”, since the excise policy is essential for the pricing and legal offer of products.
Regarding regulatory authorities, common questions are related to the “Customs Cigarette License Agency” and the “Electronic Cigarette Smoking Act”, as compliance with the regulations of the Customs Agency and the Smoking Act is critical to avoiding fines and penalties. Last but not least, customers also ask us about the “Fine for selling cigarettes without a license”, as failure to comply with licensing requirements can lead to serious legal and financial consequences.
The team of “Elan Consulting” is ready to provide you with competent advice and assist you in every step of the process, whether you are in Sofia, Burgas, Pomorie, Karnobat, Sunny Beach, Aytos, Nessebar, Sozopol, Primorsko or elsewhere in Bulgaria. Contact us to find out everything you need to successfully start and run your e-cigarette business, including licensing requirements, excise duties and required documents.
Electronic cigarettes and related liquids are regulated by Bulgarian legislation and are considered tobacco products according to Art. 12b of the Excise and Tax Warehouses Act (ZADC). This law defines that the liquid for an electronic cigarette, regardless of whether it contains nicotine, is considered a tobacco product. This includes liquids intended for use with electronic cigarettes or contained in refillable containers (art. 12b, para. 1).
“Liquid for an electronic cigarette containing nicotine” means a liquid that is used by inhalation of vapors obtained as a result of heating, without combustion, and is intended for use with electronic cigarettes or contained in refillable containers within the meaning of § 1, items 39 and 40 of the additional provisions of the Tobacco Act, tobacco and related products.
Important! Article 12b of the Excise and Tax Warehouses Act stipulates that the liquid for an electronic cigarette, regardless of whether it contains nicotine, is considered a tobacco product for the purposes of this Act, which means that persons who trade in liquid for electronic cigarettes should have a license and authorization to trade in tobacco products!
According to the law, electronic cigarettes can be both disposable and reusable by means of a refillable container and a tank, or they can be refilled through disposable cartridges (Art. 12b, para. 3). Refillable containers must contain a liquid that does not contain nicotine and can be used to refill an electronic cigarette.
Persons who sell, store and offer nicotine-containing e-cigarette liquids must submit an application for authorization to trade in tobacco products by the specified deadlines in order to continue their activities (Article 12b, paragraphs 2 and 3).
Regarding excise duty, e-cigarette liquids, regardless of whether they contain nicotine, are subject to excise duty based on the amount of liquid measured in milliliters (Art. 29, para. 3, item 3, para. 2). In addition, liquids must be supplied with banderol by certain dates in order to be legally sold commercially (Art. 12b, para. 5).
It is important to note that in order to continue the activity of selling electronic cigarettes, outlets must meet specific requirements, including the presence of a visible inscription “Cigarettes” or “Tobacco products” and separate premises for storage and sale of these products (Art. 90b).
Following the above legal provisions, e-cigarette dealers must comply with licensing and excise duty requirements in order to carry out their activities legally in Bulgaria.
The excise rates for the various categories of products related to smoking and electronic cigarettes are clearly defined in Art. 38 of the Excise and Tax Warehouses Act (ZADC). These include both smoking tobacco and heated tobacco products, e-cigarette liquids and tobacco substitutes.
For smoking tobacco (for pipe and cigarettes), the excise rate is as follows:
For heated tobacco products, the rates are:
E-cigarette liquids, whether or not they contain nicotine, are taxed at the following rates:
For nicotine-containing tobacco substitutes, the excise rate shall be:
For heating products with a content other than tobacco, the rate of excise duty shall be:
These rates reflect the progressive increase in excise duty on these products, as part of efforts to regulate the market and limit the use of tobacco products and their substitutes.
Yes, to the extent that e-cigarettes are considered tobacco products within the meaning of Bulgarian legislation, companies that trade in e-cigarettes or e-cigarette liquid should have a permit. To obtain a license to trade in electronic cigarettes, you must follow the specified steps and requirements described in the Excise and Tax Warehouses Act (ZADC).
First, you must submit a written request for issuing a permit for trade in tobacco products to the director of the territorial directorate of the Customs Agency at the location of the commercial warehouse or object (Art. 90d, para. 1). This request must be accompanied by the necessary documents determined by the Regulations for the Application of the Law (Art. 90d, para. 2).
The law provides that the right to trade in tobacco products, including electronic cigarettes, has a person who is a trader within the meaning of the Commercial Law and meets certain conditions. These conditions include that the person must not be in bankruptcy or liquidation proceedings and is represented by persons who have not been convicted of a crime of a general nature (art. 90a, para. 2).
After submitting the request and all the necessary documents, the director of the territorial directorate examines the documents and issues a permit or, on a reasoned basis, refuses the issuance within the time limits provided by law (Art. 90e, para. 1). If there are irregularities in the submitted documents, they must be eliminated within the specified period in order to avoid termination of the proceedings (Art. 90d, para. 3).
The marketing authorisation for tobacco products, including electronic cigarettes, shall be issued for each commercial warehouse or establishment separately. The right to trade arises from the date of the authorisation (Article 90e (3) and (4)). All permits issued shall be entered in a register kept by the Customs Agency (Art. 90e, para. 5).
In the event of a change in the circumstances under which the permit was issued, the trader is obliged to notify the Director of the Territorial Directorate in writing within 14 days of the occurrence of the change (Art. 90g, para. 1).
In order to obtain a license to trade in electronic cigarettes, it is necessary to prepare and submit certain documents in accordance with the regulations for the application of the Excise and Tax Warehouses Act (ZADC). Here is a list of necessary documents that you need to submit:
After submitting the application and the attached documents, the Director of the Territorial Directorate of the Customs Agency shall carry out an on-the-spot check and rule on the request within 14 days from the date of its receipt. If the documents submitted do not meet the requirements or the information provided is insufficient, the Director shall notify the person and set a period of 14 days for the rectification of the irregularities or for the provision of additional information.
The issued authorization to trade in electronic cigarettes is valid for the specific commercial warehouse or establishment and the right to trade arises from the date of its delivery. In the event of a change in circumstances, the trader is obliged to notify the director of the territorial directorate in writing within 14 days of the occurrence of the change.
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The rules for the import of electronic cigarettes in Bulgaria and the obligations for payment of excise duty are set out in the Excise Duties and Tax Warehouses Act (ZADC) and are in force from March 1, 2023. Here's what you need to know:
When importing electronic cigarettes and liquids for them, regardless of whether they contain nicotine, they are considered tobacco products according to Art. 12b, para. 1 of the ZADC. That is, they are subject to excise duty, which must be paid when they are introduced into the territory of the country. According to Art. 29, para. 3, item 2 of the ZADC, the tax base for excise duty on liquids for electronic cigarettes is the amount of liquid measured in milliliters. The excise rate for these liquids is:
Persons importing e-cigarette liquids, regardless of whether they contain nicotine, must register and receivetax warehouse management licenseif they manufacture or store these products. The application for a license must be submitted to the Customs Agency within the time limits set by law (Art. 20, para. 2).
Importers are required to submit a written request for authorisation to trade in tobacco products by 31 August 2023. In case of approval, they can continue their activities until October 31, 2023, while waiting for the ruling of the director of the territorial directorate (art. 20, para. 6). Also, importers must provide an inventory of e-cigarette liquids available as of August 1, 2023 in the relevant facility (Art. 20, para. 7).
Electronic cigarettes and liquids for them, whether or not containing nicotine, are subject to excise duty and require the corresponding authorization to trade in tobacco products. For the sale and distribution of these products, it is necessary to comply with all requirements, including the placement of a banner after the specified dates.
For those who want to trade in hookah tobacco and flavored smoking stones, it is important to know that according to Art. 12, para. 1, item 1 of the ZADC, smoking tobacco also includes smoking articles with a water pipe, which contain tobacco or tobacco substitutes. These products are also subject to excise duty and require a marketing authorization (art. 38).
The law prohibits cross-border sales of cigarettes over the Internet, pursuant to Article 31a of the Tobacco and Tobacco and Related Products Act. Such a sale is illegal and subject to penalties.
For customs duties and excise duties payable on imports of goods, including e-cigarettes, information can be found in the TARIC advisory module, which provides details on customs duties depending on the type of goods and the country of origin.
From a legal point of view, the difference between the production of liquid for electronic cigarettes and only import for the purpose of trade is significant. In order to import liquid for electronic cigarettes for the purpose of trade, it is necessary to have a permit for trade in tobacco products, according to Art. 90a, para. 1 of the Excise and Tax Warehouses Act (ZADC). This permission is issued by the Director of the Territorial Directorate of the Customs Agency and includes the submission of a written request and the necessary documents that certify the compliance of the commercial object with the requirements of the law.
However, if you want to produce liquids for electronic cigarettes, you will need to have a license to manage a tax warehouse, according to Art. 47, para. 1 of the ZADC. Manufacturers of excise goods, including liquids for electronic cigarettes, must hold this license, which is issued by the director of the Customs Agency. The procedure for obtaining a license for a tax warehouse involves submitting a written request with data about the object and the person who will manage it, as well as providing documents certifying the compliance of the object with the requirements of the law.
This tax warehouse licensing requirement is mandatory for all manufacturers of e-cigarette liquids, regardless of whether they contain nicotine or not. A tax warehouse license ensures that the manufacturer will comply with strict regulations and controls related to the production and storage of excise goods.
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