Excise tax
In one sentenceAn indirect tax imposed on specific goods whose consumption harms health or the environment, such as tobacco, energy drinks and sweetened drinks.
Simply put
Its idea is to reduce consumption of certain goods by raising their price, not to collect revenue from all goods as VAT does.
It is due on import, production or release from a tax warehouse; the importer or producer bears it, and it then becomes part of the selling price.
If your business only sells these goods and does not import or produce them, the tax has most likely been paid before you and become part of the purchase cost.
Example
A grocery buys energy drinks from a local distributor: it does not file an excise return, because the importer paid the tax, and it is included in the purchase price the grocery pays.
Don't confuse it with
Value added taxVAT covers most goods and services at every stage, while excise tax applies to specific goods only and is paid once when they enter the market.