Excise duties and special taxes are indirect taxes that tax the turnover, that is, the consumption of individual products, and are considered one of the oldest forms of taxation and are one of the most significant fiscal revenues. In the Croatian tax-legal system, the term "excise duties" is used at the level of the European Union (hereinafter referred to as the EU) as a harmonized system of excise taxation (excise duties adjusted to EU requirements), while the term "special taxes" is used for forms of excise taxation that are not subject to harmonization with European regulations, however, the term "excise duties" is unofficially used as a term that encompasses all forms, regardless of whether they are harmonized at the EU level. The harmonized system of excise taxation in the Republic of Croatia (hereinafter: the RH) does not include taxation of motor vehicles, taxation of coffee and soft drinks. The system of excise taxation of coffee and non-alcoholic beverages is not harmonized at the EU level, and member states can independently regulate national legislation in this area, where they are limited by the basic principles of the Treaty on the Functioning of the European Union; Council Directive 2008/118/EU of December 16, 2008 on the general system of excise duties is a fundamental European regulation that regulates the general framework of excise taxation, prescribes general restrictions as well as the possibility of introducing excise taxation of products that do not fall under the harmonized taxation system. Excise regulations that are not harmonized must ensure compliance with the principle of prohibition of violation of the functioning of the internal market and covert restriction of trade between EU member states and market competition (respect for the principle of free movement of goods, services, people and capital in the internal market) and fully ensure the application of the principle of non-discrimination ( equal treatment of domestic products and producers and those from other EU member states and third countries) and the principle of equality of tax form in relation to all taxpayers and entities in the EU. The coffee taxation system is governed by the Law on Special Tax on Coffee and the Ordinance on the special tax on coffee and non-alcoholic beverages.