The latest interpretations of tax law, judicial decisions and draft amendments related to excise duties.

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2. I.  Interpretations of tax law

                   i.     Category of excise goods: fuels

In the tax interpretation ref. no. IPPP3/443-257/11/15-7/S/SM the tax authority confirmed that fuel additives falling within CN code 3811 should be taxed with excise duty applicable to engine fuel, which they are added to.

It means that for example the amount of tax rate of 1.822,00 zł/1000 liters should not be applied to additives falling within CN code 3811 but they should be taxed with lower excise rate applicable to fuel, which they are added to.

In the applicant’s opinion, in view of the above the highest possible excise rate which may arise for: 

• a depressant additive for heating oil and diesel oil for which an equivalent fuel is heating oil or diesel oil is 1.048,00 zł/1.000 liters ( art. 89 par. 1 point 6 of the Excise Act);
• a cetane additive to diesel oil, for which an equivalent fuel is diesel oil is 1.048 zł/1.000 liters ( art. 89 par 1 point 6 of the Excise Act);
• a solubilising additive used to all heating and engine fuels is 1.822,00 zł/1.000 liters (art. 89 par 1 point 4 of the Excise Act);
• an additive to liquefied aliphatic gaseous hydrocarbons is 695,00 zł/1.000 kilograms (art. 89 par 1 point 12 of the Excise Act).

                             ii.            Category of excise goods: electric energy

In the tax interpretation ref. no. IBPP4/4513-124/15/MK concerning determination of threshold of energy intensity (essential to receive an excise refund arising from energy consumption) the tax authority stated that additional costs such as distribution fees should not be counted into costs of used electric energy.

For example, when including additional costs related with purchase of electric energy, on the basis of the company’s historic data with income of 60M PLN, which purchases 20K MWh a year for the purpose of business activity and due to this activity bears costs of 5M PLN a year, the amount of refund would be 190K PLN (below table indicating the particular data).

However, when we exclude additional fees from the cost of energy, which for example is 1M PLN, the amount of refund would be nearly 30K PLN less.

1. II.                Draft amendments – excise tax on motor-cars

In response to the MP interpellation no. 55, the representative of Ministry of Finance stated that “[…] the Ministry of Finance has started analytical works towards changing the excise tax system concerning motor-cars”.

However, no details were given on what the Ministry is exactly going to change. One of the presumptions appearing in the motor industry is a replacement of excise tax with environmental tax.

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