Tax regulation mechanism (Law on Excise Duties)

Updated: 02.03.2017

Author: Ilze Upatniece

Natural gas which complies with the Combined Nomenclature Codes 2711 11 00 and 2711 21 00 and is supplied to end-users is subject to excise tax (§ 6 Law on Excise Duties). The tax rate is reduced if the natural gas is used for heating (§ 15.1 Law on Excise Duties).

Eligible technologies

Only biogas is subject to the tax allowance. 

Biogas

Eligible

Amount

The amount of tax to be paid is reduced if the biogas is used for heating. The tax rate for the year 2017 is € 17.07/1000 m3 (§ 15.1 par. 1 Law on Excise Duties).

Addressees

All persons or companies supplying natural gas which complies with the Combined Nomenclature Codes 2711 11 00 and 2711 21 00 to end-users are obliged to pay the tax (§ 6 Law on Excise Duties)

Procedure

Process flow

The obliged companies must inform the authorities on the amount of taxable energy products on a monthly basis (§ 23 Law on Excise Duties).

Competent authority

State Revenue Service (§ 23, § 24 Law on Excise Duties)

Distribution of costs

State

The costs of tax relief are borne by the state.

Latvia

Further information

Basic information on legal sources