The individual interpretation of the Director of the Tax Chamber in Katowice concerns a public limited liability company operating tax warehouses, from which excise goods are issued under the suspension of excise duties procedure (the procedure allowing for the transfer of excise duty to another entity in the supply chain during production, storage, handling and movement of excise goods).
According to the personal interpretation of the Director of the Tax Chamber in Katowice dated 23 May 2016 reference no. IBPP4/4513-58/16/MK the movement of excise goods subject to a zero excise duty may take place without the obligation to lodge a security, provided that the relevant information is included in the e-AD.
one from the products offered is an excise product subject to a zero excise duty (used as a component for the production of asphalt). The applicant’s question concerned the possibility of not lodging excise security against this product and the formal conditions to be fulfilled in order to avoid such an obligation.
The general conditions for the application of the suspension procedure for excise duties shall specify Article 41(1) the Excise Tax Act according to which:
„Where the suspension procedure for excise duty is linked to the movement of excise goods, the following shall be subject to its application:
- 1. Use of e-AD or e-AD;
- 2. Placing of excise security at the competent customs office’
It follows from the above provision that a security is to be lodged in the case of movements of goods placed under the suspension procedure for excise duty, however, for products subject to a zero rate of excise duty shall apply. Article 41(1a) Excise Tax Act. The Director of the Tax Chamber in Katowice, answering the applicant's question, pointed to a recent change in the regulation in this regard:
"legislator amending the Act on Excise Tax as applicable from 1 January 2016, added Article 41(1a), according to which the condition of lodging an excise security does not cover excise goods specified In Annex 2 to the bill, taxed at zero excise duty due to destination"
The Director of the Tax Chamber in Katowice considered the applicant’s own position to be correct, according to which, in the case laid down in the above provision, the only condition authorising the non-payment of excise security is the fulfilment of the condition laid down in 41a section 3a i.e. information in the draft e-AD that the moved products are taxed at zero excise duty.
New legislation in force from the outset 2016 make it easier for traders trading excise goods. The absence of an obligation to provide excise security against certain goods may have a positive effect on financial liquidity and consequently facilitate free trade.