The consumption of electricity in the production process using external equipment does not constitute a sale of energy. If such an operation has been carried out by an operator licensed to trade electricity, the excise duty shall arise on the date of energy consumption. This is due to the interpretation of the National Tax Information Director at 19 June 2017 The signature. 0111-KDIB3-3.4013.21.2017.2.MK.
The interpretation concerns a company producing steel products. The applicant is licensed to trade electricity and cannot therefore be considered as a final purchaser. The company produces in its own right, but with the use of external company equipment, substances in the volatile state (oxygen, nitrogen, compressed air) used in further production.
The applicant wanted to know whether this process could be considered to be a sale of electricity to the owners of these equipment (the owners of the equipment do not have a license to trade electricity and could therefore be considered as end-users).
As per content Article 2(1)(19) The Excise Tax Act shall be the final purchaser of electricity without a concession to produce, transmit, distribute or trade electricity within the meaning of the Act. The sale of electricity to such an entity is a excise duty-taxed activity (Article 9(1)(2) Excise Tax Act).
In the case of a company licensed to trade in electricity (such as the applicant's interpretation), electricity consumption by that entity is the subject of taxation (Article 9(1)(3) Excise Tax Act).
The applicant presented its own position, according to which there is no sale of electricity to the equipment contractors because they do not have the capacity to dispose of energy and the company does not charge them the costs of that energy.
The Director of National Tax Information found the applicant’s own position to be correct. He also referred to the decision of the WSA in Szczecin with 8 January 2015 reference no. I SA/Sz 950/14 according to which the use of the excise product should be understood as having been made, the definitive use of the excise product.