According to the individual interpretation of the Director of the Tax Chamber in Łódź on 2 January 2015 The signature. IPTPP3/443A-68/14-4/KK Exemption from excise duties of alcohol used for the production of foodstuffs (e.g. flavours for cakes) may be understood widely and may also include losses of alcohol resulting from the production process and alcohol disposed of due to failure to meet quality standards.
The application for the establishment of limit values for the consumption of alcohol used for the production of foodstuffs shall be issued primarily on the basis of the data provided by the taxable person.
As per content Article 30(9)(5) The excise duty exemption legislation shall be subject to the ethyl alcohol contained in essential oils or mixtures of fragrances used in the manufacture of foodstuffs.
The specificity of this exemption is that the trader who manufactures products containing ethyl alcohol applies to the competent head of the customs office to set an acceptable standard of alcohol consumption for the product concerned.
By Sound Article 85(1) The competent head of the customs office shall, by decision, determine, at their request, the permitted consumption standards for alcoholic beverages for individual operators. This individual interpretation concerned the scope of the excise duty exemption for alcohol consumed in the production of foodstuffs.
The Director of the Tax Chamber in Łódź agreed with the applicant's position that:
„The term 'alcoholic beverages used for production' should be understood as a whole of alcohol released for production, i.e. both alcohol contained in the finished product and alcohol used for production, which, as a result of technological processes, has been completely used in this process and alcohol unfit for further processing contained in the production waste.
The application for the establishment of limit values for the consumption of alcohol used for the production of foodstuffs shall be issued primarily on the basis of the data provided by the taxable person. The documentation presented to the head of the customs office shall also include a precise calculation of the quantity of raw material to be contained in the finished product or lost in all processes related to its manufacture.