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Taxation of excise duties on imports of biofuel components

According to the personal interpretation of the Director of the Tax Chamber in Warsaw on 20 July 2016 The signature.

According to the personal interpretation of the Director of the Tax Chamber in Warsaw on 20 July 2016 The signature.

IPPP3/4513-50/16-2/SM imports of biofuel components for resale in the raw state may not be subject to excise duty.

According to the personal interpretation of the Director of the Tax Chamber in Warsaw on 20 July 2016 The signature. IPPP3/4513-50/16-2/SM imports of biofuel components for resale in the raw state may not be subject to excise duty.

Excise duty will be subject to imported unprocessed crude rapeseed oil only if it is intended for heating or propulsion purposes

The individual interpretation of the Director of the Tax Chamber in Warsaw concerns the actual situation in which the Company, as part of its business activity, intends to act as an importer and intermediary in the sale of raw rape oil in an unaltered state.

At the same time, the company allows that the buyer or subsequent entity who acquires this oil in Poland will undergo treatment to obtain components for the production of biofuels.

Import of energy products in principle is subject to excise duty, however, in the state described, the company cannot know whether rapeseed oil will be used by the counterparty as a fuel additive or, for example, for food purposes.

According to Article 8(1) Excise duty laws (Journal of Laws of 2009, item 11) the subject of excise duty is, inter alia:

  • • production of excise goods
  • • import of excise goods
  • • sale of excise goods outside the customs suspension procedure

Article 2(1)(1) Excise tax laws provide that excise goods are energy products (e.g. coal), electricity, alcoholic beverages, tobacco products and tobacco droughts as defined in Annex 1 to the bill.

According to Article 86(1)(1) Excise tax laws, energy products within the meaning of the Act, shall include the products referred to in that provision if they are intended for heating or propulsion purposes.

However, the content of the above provisions does not resolve all the doubts which may arise in relation to the import of excise goods.

The Director of the Tax Chamber in Warsaw settled the application in favour of the taxpayer. According to his personal interpretation:

"(...)Excise tax will be subject to imported unprocessed crude rapeseed oil only if it is intended for heating or propulsion purposes.(... It cannot be assumed that the Company decides on the direct destination of imported from Thailand and sold on the territory of Poland, unprocessed crude rape oil for heating or propulsion purposes....)The Company, importing unprocessed crude rape oil and selling it in Poland, is not obliged to pay excise duty."

This interpretation is beneficial for entrepreneurs importing products that can be used for both propulsion or heating purposes as well as food or industrial purposes.

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