The final purchaser of coal which bought free of excise duty due to destination and then changed its status to an intermediate coal entity and resold the same coal to another intermediate coal entity is not obliged to pay the excise duty on sales. This is due to the interpretation of the National Tax Information Director at 4 April 2017 The signature. 2461-IBPP4.4513.21.2017.1.PK.
The applicant of the interpretation is a company producing electricity and heat using coal. The purchase of coal used in this respect is exempt from excise duty on the basis of Article 31a(1)(5) Excise Tax Act. The company purchased coal (excised from excise duty) as a final buyer of coal.
The applicant intends to modernise operations by abandoning coal and replacing it with gas fuel. For this reason it is necessary to sell coal stored in warehouses. The Company intends to obtain the status of an intermediate coal entity (PPW), which is equivalent to the loss of the status of final coal buyer. The individual interpretation question was whether the sale of coal (after the change from the final coal buyer to PPW) to another PPW would be taxed on excise duty.
According to Article 9a(1) Excise duty laws taxed excise duties include sales of coal products in the territory of the country to the final coal buyer and the use of coal products by the intermediate coal operator.
However, the Act does not include in the catalogue of activities taxed on the excise duty of coal sales by an intermediate coal operator (such as an applicant after a change of status) to another intermediate coal operator.
The Director of National Tax Information pointed out another case of excise duty:
„when the final purchaser of coal has acquired coal products by way of exemption and will then use those products for purposes other than those declared at the time of purchase by way of exemption - that use shall be subject to excise duty where the sale of those products is also considered to be used."
At the same time, the Director of National Tax Information considered that the sales case described by the applicant was outside the scope of the above activity and therefore did not require the payment of excise duties:
„However, an entity which holds PPW status shall be entitled to sell coal products to another PPW without paying excise duty.’
The interpretation of the Director of National Tax Information indicates the potential benefits of changing coal fuel to more ecological.