Fuel in the form of LNG or CNG gas may be supplied to the final buyer from the same tank at different rates of excise duty. This is due to the interpretation of the National Tax Information Director at 28 July 2017 The signature. 0114-KDIP1-2.4013.12.2017.1.SM.
The rates of excise duty have been set at different levels depending on the purpose of the gas fuel. For example, another rate applies to the sale of this fuel to the final buyer for heating the buildings and another rate if it is to be used as motor fuel.
Gas fuel occurs in various forms. The rate of excise duty is determined differently for liquefied natural gas (LNG) and CNG. Detailed data in this respect are included in 89 section 1 point 12 Excise Tax Act.
The applicant is a company supplying gas to institutional customers. It intends to sell gas in the form of LNG and CNG from the same tank to final purchasers who use fuel for different purposes (motor or fuel fuel fuel). The applicant wanted to know if he would be able to apply different rates of excise duty even though the fuel came from the same tank.
The company intends to draw up an appropriate record for the purposes of excise duty using the measuring equipment in its possession, approved and commissioned.
The Director of National Tax Information pointed out the need to properly measure and record the product sold in order to meet the requirements set out in Article 138j Excise duty laws:
„So that the Company can sell gas from one LNG tank with different rates of excise duty (or excise duty exemptions) should be able to determine precisely the taxable amount for this operation, i.e. the individual quantities of gas sold for different purposes in different forms.’
The Director of National Tax Information considered that the measuring devices described by the company provide adequate records and therefore the applicant will be able to apply different rates of excise duty for gas fuel sold from the same tank.