Tax regulation mechanism
Updated: 18.01.2019
Author: Ilze Upatniece
The Law on Excise Duties obliges companies processing, holding, receiving or dispatching mineral oil products to pay excise tax (§ 5 Law on Excise Duties). This amount is reduced if the fuel is blended with biofuels (§ 14 Law on Excise Duties).
Eligible technologies
Only biofuels are tax-deductible.
Amount
The amount of tax to be paid is reduced if the taxed energy product - diesel or petrol - is mixed with biofuels.
Tax bands for the year 2018 are set as follows:
Diesel fuel, substitute products and components thereof:
- pure: € 414 per 1,000 litres,
- blend of 70-85% biofuels: 30% of the tax rate for pure diesel per 1,000 litres,
- pure biodiesel: € 0 per 1,000 litres.
Unleaded petrol, substitute products and components thereof:
- pure: € 509 per 1,000 litres,
- blend of 70-85% biofuels: 30% of the tax rate for unleaded petrol per 1,000 litres (§ 14 par. 1.1., 1.4., 3.1., 3.2., 4.1., 4.2. Law on Excise Duties).
Addressees
The Law on Excise Duties obliges companies processing, holding, receiving or dispatching mineral oil products to pay excise tax (§ 5 Law on Excise Duties).
Procedure
Process flow | The obliged companies must declare the amount of taxable energy products on a monthly basis (§ 23 Law on Excise Duties).
For more information on payment procedures, please visit the following website: https://www.vid.gov.lv/lv/veidlapas-un-iesniegumi-17 |
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Competent authority | State Revenue Service (§ 23, § 24 Law on Excise Duties) |
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Distribution of costs
State | The costs of tax relief are borne by the state. |
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