Understanding the excise tax landscape
Traditional paper-based methods of managing excise goods are becoming obsolete as tax authorities around the world implement digital transformation initiatives. A notable example of such changes is the EU’s Excise Movement and Control System (EMCS), which digitises and simplifies the tracking of excise goods. This computerised system allows member states to track the movement of excise products, replacing paper documentation with an electronic administrative document (e-AD)
Companies managing excise tax obligations face several challenges:
- Ensuring compliance across multiple jurisdictions, each with its own set of complex requirements
- Adapting quickly to frequent and sometimes unexpected regulatory changes
- Managing complex exemptions based on detailed qualification criteria
- Ensuring impeccable documentation for accurate reporting and robust supporting materials
- Providing thorough audit defences backed by complete transaction records.
More often than not, companies have to implement the solutions required by the state. There can be additional complications, such as some of those might be difficult to integrate into the existing business ecosystem, or strict deadlines.
- Excise tax software helps companies comply with complex excise tax regulations. It can provide digital identification, supply chain visibility, real-time reporting, intelligent tax calculations, and audit support.
- Implementing excise tax software provides tangible benefits, including reduced risk of fines, increased operational efficiency, valuable insights, and better adaptability to regulatory changes.
- As governments worldwide require the digitisation of excise systems, businesses must strategically implement specialised software to minimise disruption and ensure compliance with increasingly complex regulatory requirements.
How modern excise software works
Modern excise software provides track and trace features; thus a company can track products at every stage of the supply chain–from production or import through distribution channels to final sale. Every movement is recorded in a secure digital register, creating a continuous supply chain that can be verified by tax authorities.
Modern systems can maintain constant communication with the tax authorities’ platforms, which allows for the automatic transfer of the required data in the format and frequency specified by regulations. This eliminates manual reporting processes and reduces compliance risk.
is estimated to be the market size of the Vector Database Market by 2034.
Market Research Future
We’re a network of innovators. We devise bold solutions to the most intricate client challenges. It’s our ability to explore new technologies to design best-fit solutions that has 96% of our clients ready to recommend us.
We’re a network of innovators. We devise bold solutions to the most intricate client challenges. It’s our ability to explore new technologies to design best-fit solutions that has 96% of our clients ready to recommend us.
We’re a network of innovators. We devise bold solutions to the most intricate client challenges. It’s our ability to explore new technologies to design best-fit solutions that has 96% of our clients ready to recommend us.
We’re a network of innovators. We devise bold solutions to the most intricate client challenges. It’s our ability to explore new technologies to design best-fit solutions that has 96% of our clients ready to recommend us.
Real-world implementation of excise software: Ukrainian e-Excise system
Another example of increasing the level of digitisation of excise taxes is the Ukrainian e-Excise system, an electronic platform that will control the circulation of alcoholic beverages and tobacco products in the country.
By 2026, all business entities that deal with alcohol and tobacco products on the Ukrainian market must integrate into this system to comply with the law. The e-Excise system represents a comprehensive digital transformation of the excise control mechanisms in Ukraine, which requires a complex technical implementation.
ELEKS has established itself as a leading technology consultant in this specialised field, having played a key role in the development of the e-Excise system. Working closely with the Ukrainian government, ELEKS has designed and built a platform with several critical features:
- Electronic stamp generation. The system creates unique DataMatrix-based electronic excise stamps for complete product traceability, replacing traditional physical stamps with secure digital alternatives.
- Tracking architecture. The solution allows real-time recording of product movements throughout the supply chain, creating a continuous digital trail from production or import to final sale.
- Activation protocol management. The platform manages the full lifecycle of electronic seals, including post-production activation, status checks during distribution, and deactivation at the point of sale.
- Structure of electronic document flow. We have helped to develop a sophisticated structure for excise electronic documents containing comprehensive information on product movement and tax status.
- System integration structure. Perhaps most importantly, this solution includes robust integration capabilities that allow businesses to connect their existing systems to the e-Exise platform.
Conclusions
As governments around the world introduce digital excise systems, businesses have no choice but to comply with these increasingly complex regulatory requirements. Choosing the right specialised software can at least turn the government-imposed requirement into a more or less manageable process.
For companies that are forced to comply with these mandatory excise tax digitisation initiatives, specialised software is not only a necessary compliance tool but also potentially a way to minimise the disruption and costs associated with these inevitable regulatory requirements. By strategically implementing these government technologies, businesses can focus on maintaining operations with minimal penalties while managing the risks associated with tax compliance.
We’re a network of innovators. We devise bold solutions to the most intricate client challenges. It’s our ability to explore new technologies to design best-fit solutions that has 96% of our clients ready to recommend us.
We’re a network of innovators. We devise bold solutions to the most intricate client challenges. It’s our ability to explore new technologies to design best-fit solutions that has 96% of our clients ready to recommend us.
FAQs
Customer experience journey mapping is a strategic visualisation process that tracks and analyses all customer interactions with your organisation. Product and service design experts collect data across all customer touchpoints to craft personalised strategies aligned with your CX objectives and focused on improving key metrics such as Net Promoter Score (NPS), Customer Satisfaction (CSAT), and Customer Lifetime Value (CLV).
Customer experience directly impacts revenue growth, customer retention, and market competitiveness. By optimising every stage of the customer lifecycle, you can unlock new revenue streams and maximise your customers’ lifetime value while also identifying upselling and cross-selling opportunities. Investing in CX provides measurable business outcomes through enhanced loyalty, reduced churn, and sustainable growth.
Implementing effective customer experience strategies requires a structured approach aligned with business objectives. You should start by defining clear and measurable CX goals aligned with your business objectives and establishing KPIs to track success. A winning customer experience strategy should focus on human-centred design, establishing continuous feedback mechanisms, and fostering a customer-centric culture in your organisation.
