Tax regulation mechanism (Law on Excise Duties)
Updated: 18.01.2019
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
Natural gas is subject to the tax allowance. If biogas reaches the quality of biomethane, it can also be promoted.
Amount
The amount of tax to be paid is reduced if the biogas is used for heating. The tax rate for the year 2018 is € 1.65 per MWh (§ 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). |
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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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Latvia
