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Schleswig-Holstein

Obtaining permission to operate a settlement distillery

Source: Zuständigkeitsfinder Schleswig-Holstein (Linie6PLus)

Service Description

If you want to operate a so-called settlement distillery, you need a permit to do so.

In Germany, alcohol may generally only be produced in distilleries that are sealed by the customs authorities (sealed distilleries). One exception to this principle is in the case of settlement distilleries.

These distilleries are not sealed and the alcohol tax is estimated on a flat-rate basis according to the type and quantity of raw materials processed. The permit entitles you to operate such a distillery. You are allowed to produce up to 300 liters of pure alcohol (annual quota) per calendar year in your settlement distillery.

Before granting a permit, the tax authorities generally check whether certain requirements are met with regard to your tax reliability, your bookkeeping and the operating facilities. You must also prove that you have an economic need, for example because you grow a lot of fruit as an agricultural business.

The permit is tied to your person and can be limited in time. Irrespective of the operating permit, you must also have each individual firing process approved and submit a so-called settlement declaration. The information in the settlement declaration is used to determine the quantity of alcohol you produce per distillation. Your annual quota will be debited accordingly.

If you do not have your own severance distillery, you can process your self-produced raw materials fruit (including fruit must and fruit pomace), berries, wine (including wine yeast and wine pomace), roots, Jerusalem artichokes or the respective residues thereof into alcohol as a so-called substance owner in a severance distillery approved by the customs administration or have them processed by the owner of the respective severance distillery (substance owner distillation).

You do not need a formal permit to act as a substance owner. However, you must register each individual distillation process with the main customs office. To do this, you submit a "substance owner's settlement declaration". The declaration also serves as a tax return for the alcohol tax. As a substance owner, you have a quota of up to 50 liters of pure alcohol per calendar year.


Process flow

You must apply in writing for a permit to operate a severance distillery:

  • Download the form "Application for a permit to operate a severance distillery with operating declaration" (Form 1248) from the Customs Administration website.
  • Complete the form in full, compile all the required documents or other forms and send them by post to your main customs office.
  • The main customs office will check your application. As a rule, the main customs office will check on site whether the information provided in the application corresponds to the actual operating conditions before issuing the permit.
  • You will receive notification of the permit or a rejection.

Apply for a permit online:

  • You can also fill out and submit the form and to apply for a permit to operate a settlement distillery and any other forms online.
  • Call up the online application on the customs administration's citizen and business customer portal on the Internet. This will guide you step by step through the necessary information, which you can enter electronically.
  • Upload the required documents as a file and send the application.
  • The main customs office will check your details and documents.
  • You will receive notification of approval or rejection.
Requirements

For a permit to operate a compensation distillery:

  • You are fiscally reliable.
  • If you are obliged to do so, you keep proper accounts and prepare annual financial statements on time.
  • You have an economic need. Typically, you must have an agricultural business that is economically independent and has at least 3 hectares, or at least 1.5 hectares in the case of viticulture or intensive fruit growing.
  • The combustion chamber must be designed in such a way that manipulation possibilities are excluded as far as possible.
  • They only use permitted equipment.
  • The distillery is economically independent.
  • If there are signs that the tax is at risk, you may be required to provide a security.
Which documents are required?

For the "Permit to operate a compensation distillery" additionally in duplicate:

  • Site plans of the premises of the severance distillery with details of the addresses and the functions of the rooms, areas and facilities, in particular
    • Floor plan and elevation of the distillery
    • List of the agricultural land cultivated by the business, stating the site register number, size and type of use
    • current assessment or contribution notice from the agricultural pension fund or the agricultural employers' liability insurance association and written lease agreements or land register extracts
  • Drawing and description of the combustion appliance and all components used
  • List of rooms and operating equipment (forms 1204, 1205)

In individual cases, your main customs office may request further documents or waive certain requirements.

What are the fees?

For permission

What deadlines do I have to pay attention to?

You must submit the application for a permit to operate a pot still in good time before the first start-up of your pot still.

Processing duration

The processing time depends on the specific circumstances of each individual case, in particular the result of the examination of the actual operating conditions. As the time periods vary greatly here, no standard processing time can be specified.

Legal basis
Appeal
  • Objection. Detailed information on how to lodge an objection can be found in your notification of the permit applied for.
  • Appeal to the tax court
Applications / forms
Author

Directorate General of Customs (GZD

)
Forwarding service: Deep link to the source portal

The text was automatically translated based on the German content.

Technically approved by

Federal Ministry of Finance (BMF)

Professionally released on

23.06.2023

Teaser

If you want to operate a so-called settlement distillery, you need a permit to do so.

Process flow

You must apply in writing for a permit to operate a severance distillery:

  • Download the form "Application for a permit to operate a severance distillery with operating declaration" (Form 1248) from the Customs Administration website.
  • Complete the form in full, compile all the required documents or other forms and send them by post to your main customs office.
  • The main customs office will check your application. As a rule, the main customs office will check on site whether the information provided in the application corresponds to the actual operating conditions before issuing the permit.
  • You will receive notification of the permit or a rejection.

Apply for a permit online:

  • You can also fill out and submit the form and to apply for a permit to operate a settlement distillery and any other forms online.
  • Call up the online application on the customs administration's citizen and business customer portal on the Internet. This will guide you step by step through the necessary information, which you can enter electronically.
  • Upload the required documents as a file and send the application.
  • The main customs office will check your details and documents.
  • You will receive notification of approval or rejection.

Requirements

For a permit to operate a compensation distillery:

  • You are fiscally reliable.
  • If you are obliged to do so, you keep proper accounts and prepare annual financial statements on time.
  • You have an economic need. Typically, you must have an agricultural business that is economically independent and has at least 3 hectares, or at least 1.5 hectares in the case of viticulture or intensive fruit growing.
  • The combustion chamber must be designed in such a way that manipulation possibilities are excluded as far as possible.
  • They only use permitted equipment.
  • The distillery is economically independent.
  • If there are signs that the tax is at risk, you may be required to provide a security.

Which documents are required?

For the "Permit to operate a compensation distillery" additionally in duplicate:

  • Site plans of the premises of the severance distillery with details of the addresses and the functions of the rooms, areas and facilities, in particular
    • Floor plan and elevation of the distillery
    • List of the agricultural land cultivated by the business, stating the site register number, size and type of use
    • current assessment or contribution notice from the agricultural pension fund or the agricultural employers' liability insurance association and written lease agreements or land register extracts
  • Drawing and description of the combustion appliance and all components used
  • List of rooms and operating equipment (forms 1204, 1205)

In individual cases, your main customs office may request further documents or waive certain requirements.

What are the fees?

For permission

What deadlines do I have to pay attention to?

You must submit the application for a permit to operate a pot still in good time before the first start-up of your pot still.

Processing duration

The processing time depends on the specific circumstances of each individual case, in particular the result of the examination of the actual operating conditions. As the time periods vary greatly here, no standard processing time can be specified.

Legal basis

Appeal

  • Objection. Detailed information on how to lodge an objection can be found in your notification of the permit applied for.
  • Appeal to the tax court

Applications / forms

Author

Directorate General of Customs (GZD

)
Forwarding service: Deep link to the source portal

The text was automatically translated based on the German content.

Technically approved by

Federal Ministry of Finance (BMF)

Professionally released on

23.06.2023

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