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Losses of coal stored by power plants are not subject to excise duty

Excise taxation is not limited to activities such as the sale or acquisition of excise goods.

Excise taxation is not limited to activities such as the sale or acquisition of excise goods.

Their loss may also be the subject of taxation.

According to the interpretation of the individual tax law of the Director of the Tax Chamber in Katowice from 15 December 2015 No BPP4/4513-176/15/MK Power plant...

Excise taxation is not limited to activities such as the sale or acquisition of excise goods. Their loss may also be the subject of taxation. According to the interpretation of the individual tax law of the Director of the Tax Chamber in Katowice from 15 December 2015 No BPP4/4513-176/15/MK the coal storage plant does not have to pay excise duty due to carbon losses due to adverse weather conditions such as rain, snow or temperature fluctuations.

Subject to Article 2(1)(1) Act of 6 December 2008 on excise duty (i.e. Journal of Laws of 2014, item 752 as amended hereinafter referred to as the Act), excise goods shall mean energy products, electricity, alcoholic beverages, tobacco products and tobacco droughts as defined in Annex 1 To the bill.

According to Article 9a(1) In the case of coal products, excise duties are taxed, among other things, the creation of losses in coal products.

Article 31a(1) However, the Act provides for certain exemptions from excise duties concerning, inter alia, taxable activities involving coal products intended for heating purposes in the production of electricity.

For this reason, there may have been doubts as to how to qualify the loss of coal shown by the inventory of the power plant for electricity production. The above-mentioned individual interpretation has settled this issue in favour of the taxpayer.

The reduction in the mass of coal stored by the power plant due to e.g. rainfall does not entail the obligation to pay excise duty on the lost part. Such an interpretation is extremely beneficial for entrepreneurs using coal in the process of generating electricity.

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