ATECO Codes — Manufacture of tobacco products
Division 12 groups industrial tobacco processing: transformation of dried leaves and manufacture of cigarettes, cigars, pipe tobacco, snuff and reconstituted tobacco. This is a sector overseen by the Customs and Monopolies Agency, with products subject to excise duty. From a tax perspective, revenue falls under the 67% profitability coefficient provided for manufacturing activities under the flat-rate regime, while VAT and ordinary taxes follow the rules common to goods producers.
- ATECO 2025 codes
- 1
- Flat-rate eligible
- 1 of 1
- Profitability coefficient
- 67%
- Prevalent INPS scheme
- Gestione Separata
Frequently asked questions
Does ATECO code 12 also apply to opening a tobacconist?
No. Division 12 relates to the industrial production of tobacco, i.e. the manufacture of cigarettes, cigars and pipe tobacco. Someone opening a retail outlet uses code 47.26.00 (retail sale of tobacco products) instead, which requires a concession from the Customs and Monopolies Agency. These are two distinct activities with different obligations and codes.
Can a private individual with a VAT number manufacture processed tobacco?
The manufacture of processed tobacco products is subject to a regime of tight state control: plants must be authorised as tax warehouses by the Customs and Monopolies Agency and products must be listed in the official selling price schedules. In practice, division 12 is used by industrial facilities, not by individual VAT number holders. The cultivation of tobacco leaves, on the other hand, is unrestricted and falls under a different agricultural code.
What profitability coefficient applies under the flat-rate regime for division 12 activities?
As a manufacturing activity, the coefficient is 67%: taxable income equals 67% of revenue, to which the substitute tax of 15% is applied (5% in the first five years if the new-business conditions are met), within the €85,000 revenue threshold. The excise duty regime on the product remains separate. You can calculate the taxes to estimate the tax burden on your turnover.