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Excise duty

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When are the energy products exempted partly or wholly from the excise duty?
In accordance with the applicable provisions, the total and partial exemptions from the excise tax on energy products are as follows:

a. Total exemption
1. Where no excise tax rate is regulated for the specific energy products and provided that these products are not used as heating fuel or motor fuel.
2. When released for free consumption in another Member State, they are contained in normal fuel tanks of commercial motor vehicles to be used as fuel by such vehicles as well as in special containers and are to be used for the operation during transport, of the systems with which these containers are equipped.
3. When they are consumed in the production unit of energy products if the energy products are made within this unit.
4. When they are destined for air transport other than private flying fuel.
5. When imported for use as navigation fuel in territorial (EU) waters, including professional fishing, except when used on private boats for recreational uses and in the case of electricity produced on board. The energy products which are used as maritime fuel outside the Community territorial waters are not subject to excise tax.
6. Gas oil (DIESEL) intended solely as electrical insulator for transformers.
7. DIESEL, kerosene, light oil (White Spirit) and other light oils ordered by industries or handicrafts and intended to be used exclusively as raw material for the production of their products.
8. Aromatic hydrocarbons (benzene, toluene, xylene) intended to be used by industries or handicrafts as raw material for the production of their products.
9. Coal, lignite and coke used for electricity production, mineral processing, as well as for chemical reduction and metallurgical treatment.

b. Partial exemption
1. LPG and methane used in agriculture.
2. Extraction gas (hexane).
3. Gas oil (DIESEL) used solely for the production of electricity.
4. Gas oil (DIESEL) used solely in agriculture, including tax refund.
5. Gas oil (DIESEL) used in industrial businesses and hotels, as well as in hospitals and welfare institutions, including tax refund.
6. DIESEL and kerosene used as heating fuel for the time period 15th October to 30th April each year (especially for heating oil, including tax refund). C. Other exemptions
When they are destined for:
1. Delivery in the frame of diplomatic and consular relations
2. Recognized International Organizations and for members of such Organizations, within the limits and under the conditions laid down by their constitutional International Conventions or agreements regarding their headquarters.
3. The Armed Forces and the political services or the supply of canteens and their clubs, of the other North Atlantic Member States, in accordance with the Treaty.
4. Consumption within the frame of agreements with Third Countries or International Organizations, as long as this agreement is subject to exemption from Value Added Tax (VAT)
5. The supply of ships and aircraft, in accordance with the relevant national regulations.

When and where is the heating fuel and motor fuel respectively used?
The heating fuel is intended to be used solely for the operation of central heating systems (radiators) or other heating means in accommodation, residence or work areas. In every other case motor fuel should be used.
In order to distinguish heating fuel from motor fuel we should pay attention to the colour (heating fuel is red) and the tracer.
What are the prerequisites for the excise tax return on diesel engine oil (DIESEL) when used in hotel business, hospitals and welfare institutions as well as industrial – craft businesses?
As long as the engine oil (DIESEL) which is used in industrial and craft businesses is concerned (stationary engines, machinery and mechanical equipment and off-road vehicles), as well as in hotel businesses, public and private hospital and welfare institutions, the amount of the Excise Tax which should be refunded amounts to 125€/ kiloliter.
The Customs office situated in the spacial jurisdiction of the industrial/ hotel complex or hospital and welfare institution is the competent authority for the verification of the supporting documents.