Tax regulation mechanisms (Relief from Excise Duty)

Updated: 26.09.2017

Author: Jurga Tallat-Kelpšaitė

In Lithuania, the obligation to pay excise tax on electricity arises where:

  • it is sold or otherwise transmitted to a person who has no business licence 
  • it is received by an unlicensed person from another EU member state 
  • it is imported by an unlicensed person or 
  • it is consumed by the holder of a licence or an electricity producer for own use Electricity consumption for own use is defined as the consumption of electricity for purposes other than electricity production processes and production process maintenance (Chapter IV Art. 45 Law on Excise Taxes) 

Electricity from renewable sources is exempt from excise duty (Chapter IV Art. 48 Par. 1 Item 2 Law on Excise Taxes)

Eligible technologies

All renewable electricity generation technologies are exempt from excise duty (Chapter IV Art. 48 Par. 1 Item 2 Law on Excise Taxes)

Wind energy

Eligible

Solar energy

Eligible

Geothermal energy

Eligible

Biogas

Eligible

Hydro-power

Eligible

Biomass

Eligible

Amount

The amount of subsidy is equal to the amount of tax a person is exempt from. The tax on generated electricity is EUR 1.01 per MWh. Generated electricity used for business purposes is subject to a tax of EUR 0.52 per MWh (Chapter IV Art. 47 Par. 1, 2 Law on Excise Taxes).

Addressees

Entitled party: Plant operators generating electricity from renewable sources (Chapter IV Art. 48 Par. 1 Item 2 Law on Excise Taxes)

Procedure

Process flow

This scheme is based on obligations. There is no administrative procedure.

Competent authority

The institution that implements the measures and is responsible for the monitoring of excise tax payment is the State Tax Inspectorate of the Ministry of Finance of the Republic of Lithuania (Chapter I Art. 21 Par. 1 Law on Excise Taxes).

Lithuania

Further information

  • Valstybinė mokesčių inspekcija prie Lietuvos Respublikos finansų ministerijos - State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania
  • +370 5 266 8200
  • State Tax Inspectorate website
  • vmi(at)vmi.lt

Basic information on legal sources