German Tax Authorities Raid E-cigarette Shops for Tax Evasion

Sep.10.2024
German Tax Authorities Raid E-cigarette Shops for Tax Evasion
German tax authorities raided e-cigarette shops in multiple cities, seizing illegal products and evidence of tax evasion. Two suspects are involved.

According to Lokalkompass's report on September 9th, on September 5th, tax authorities in Germany conducted raids on four e-cigarette shops, two residences, and a company address in Meiderich, Duisburg, Dinslaken, Bocholt, and Hamminkeln, seizing around 400 liters of e-liquid, suspected synthetic drugs, and other written and electronic evidence. The two German men involved are suspected of tax evasion and illegal trading of e-cigarette e-liquids.


Tax enforcement measures revealed that the Münster and Duisburg Customs Offices discovered violations at two e-cigarette shops, prompting an investigation. Further investigation revealed that a company owned by one of the suspects was also used to store untaxed e-cigarette liquid.


Preliminary inspections of four e-cigarette shops have revealed evidence of not only untaxed e-liquid sales, but also of some e-liquid being self-produced from various raw materials and sold mixed with legal products, resulting in an estimated tax loss of approximately 80,000 euros.


Starting from July 1, 2022, tobacco alternatives (including e-cigarette e-liquid) in Germany will be subject to taxation. Currently, the tobacco tax rate is 0.20 euros per milliliter. Violations of this regulation may result in criminal and tax penalties.


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