Tax regulation mechanism
In Poland, a tax is levied on the sale of electricity to end-users and their consumption (art. 9 Tax Act). Electricity from renewable sources is exempt from consumption tax (art. 30 par. 1 Tax Act).
All renewable electricity generation technologies are eligible for tax exemption (art. 30 par. 1 Tax Act).
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 Tax Act).
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 Tax Act).
Tax collection. The tax is collected when the electricity is supplied to the end-user or when it is consumed (art. 11 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 Tax Act).
The competent authority is the customs office (art. 14 par. 1 Tax Act).
Distribution of costs
The costs of tax relief are borne by the state (art. 1 par. 2 Tax Act).