Business glossary
Excise tax
A tax applied to specified goods, services or activities under the relevant law.
Example
A transaction involving fuel, a specified service or another regulated category may involve excise tax under the relevant law. The taxable item, quantity, rate and responsible filer depend on that specific tax.
How it differs from related terms
Excise tax is different from a general sales tax or VAT. Do not substitute a general sales-tax percentage for an excise calculation. Use the authority's current rules for the product and jurisdiction.
Frequently asked questions
What is an example of excise tax?
A transaction involving fuel, a specified service or another regulated category may involve excise tax under the relevant law. The taxable item, quantity, rate and responsible filer depend on that specific tax.
How should excise tax be interpreted?
Excise tax is different from a general sales tax or VAT. Do not substitute a general sales-tax percentage for an excise calculation. Use the authority's current rules for the product and jurisdiction.