Tax regulation mechanism

Updated: 07.01.2018

Author: Krzysztof Ignaciuk

In Poland, an excise tax is levied on the sale of electricity to end-users and their consumption (Art. 9 Excise Tax Act). Electricity from renewable sources is exempt from consumption tax (Art. 30 par. 1 Excise Tax Act).

Eligible technologies

All renewable electricity generation technologies are eligible for tax exemption (Art. 30 par. 1 Excise Tax Act).

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 taxes entitled persons are exempt from. At the moment, the consumption tax on electricity amounts to PLN 20 (approx. € 4.55) per MWh (Art. 89 par. 3 Excise Tax Act).

Addressees

Electricity from renewable sources is exempt from consumption tax. Both generators and suppliers of electricity are exempt from paying tax on all renewable electricity sold to end-users or consumed (Art. 30 par. 1 in conjunction with Art. 9 par. 1 Excise Tax Act).

Procedure

Process flow

Tax collection. The tax is collected when the electricity is supplied to the end-user or when it is consumed (Art. 11 Excise Tax Act).

Certificates issued by URE. The regulatory authority URE issues certificates to electricity distributors that comply with their quota obligation (see quota system).

Exemption from tax. Generators and suppliers are exempt from the tax when they submit their certificates to the competent authority (Art. 30 par. 1 Excise Tax Act).

Competent authority

The competent authority is the customs office (Art. 14 par. 1 Excise Tax Act).

Distribution of costs

State

The costs of tax relief are borne by the state (Art. 1 par. 2 Excise Tax Act).

Poland

Further information

Basic information on legal sources