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„Coal’ excise duty exemption

In connection with the upcoming heating season, it is worth bringing the issues of excise duty exemptions to taxpayers when buying coal.

In connection with the upcoming heating season, it is worth bringing the issues of excise duty exemptions to taxpayers when buying coal.

On 2 January 2012 as a result of the amendment of the Act of 6 December 2008 on excise duty (Journal of Laws of 2011, item 1707, Next: Excise Tax Act) ...

In connection with the upcoming heating season, it is worth bringing the issues of excise duty exemptions to taxpayers when buying coal.

On 2 January 2012 as a result of the amendment of the Act of 6 December 2008 on excise duty (Journal of Laws of 2011, item 1707, Further: Excise Tax Act) was added Article 31a determining the scope of the exemption from excise duty on coal products (including coal and coke). These provisions have been introduced by Article 21(10) Act of 16 September 2011 to reduce certain responsibilities of citizens and entrepreneurs (Journal of Laws, item 1378, hereinafter: Citizens' Obligations Act).

In order to be exempted from the obligation to pay excise duty, the three conditions. After first be an entity listed in the Excise Tax Act as exempt entity or use coal or coke for excise duty-exempt purposes and purchase with the so-called intermediate coal operator. Entities exempted under Article 31a Excise tax laws include households, public administration bodies, units of the Armed Forces of the Republic of Poland, nurseries, schools, kindergartens and public benefit organizations.

second, equally important and at the same time easy to meet the buyer's obligation will be written confirmation and return of the so-called delivery document to the seller – this is a special print, which will accompany the delivery of coal or coke (except for invoices, receipts or bills). When we get the goods, we'll get our hands on it.

two to four copies of such delivery document from which one is for us, and for us second we need to sign and send it back to the seller (or the driver who brought the goods we ordered).

third, The most important condition for us is to have and keep records of the consumption of coal products. In principle, we are required to keep records to which we must enter the quantity of carbon products shipped, received or used under their CN codes in 1000 kg in such a way that the quantity of these products can be calculated.

Recording the consumption of coal products can be carried out in both paper and electronic form. However, it should be borne in mind that, in the case of a paper version, it is necessary to go with such records to the head of the customs office, who must place the appropriate stamp on it.

In this case, it should be noted that the entities listed in Article 31a the Excise Tax Act, which is specified above.

It should be borne in mind that the lack of such records or its incorrect conduct may result in the recognition by the customs authorities that we do not have the right to benefit from a carbon duty exemption, which will consequently lead to a tax surcharge and which will not benefit our pockets.

In view of the above, it must be stated that the changes introduced by the legislature are, in principle, not felt by the average taxpayer, since in this case they are subject to statutory exemption and are not obliged to keep records of the consumption of coal products. Other non-exempted entities are subject to obligations which will undoubtedly be very burdensome.

Dominic Timula

Tax consultant at the law firm

Russell Bedford Poland Sp. z o.o.

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