Tax regulation mechanisms (exemption from excise tax)

Updated: 19.10.2017

Author: Boris Valach

In Slovakia, the consumption of electricity is subject to an excise tax (§ 1 Act No. 609/2007). The use of renewable energy is encouraged by exempting it from this tax (§ 7 par. 1 Letter e Act No. 609/2007).

Eligible technologies

All renewable electricity generation technologies (solar, wind, geothermal, water and biomass) are eligible (§ 7 par. 1 Letter e Act No. 609/2007).

Wind energy

Eligible.

Solar energy

Eligible.

Geothermal energy

Eligible.

Biogas

Eligible.

Hydro-power

Eligible.

Biomass

Eligible.

Amount

The amount of tax allowance is equal to the amount of tax entitled persons are exempt from. The amount of tax is calculated on the basis of the amount of electricity in MWh and the corresponding tax tariff (§ 5 Act No. 609/2007). Since 1 January 2010, the tax on electricity has been € 1.32 per MWh (§ 6 par. 2 Act No. 609/2007).

Addressees

Entitled party: Every legal entity or natural person entitled to use tax-exempt electricity is entitled to the tax allowance.

Interested parties shall submit a separate application to the customs office for the use of tax-exempt electricity (§ 8 par. 1 Act No. 609/2007).

Procedure

Process flow

  • Application. Legal entities and natural persons that intend to use tax-exempt electricity shall apply in writing to the customs authority for registration as authorised consumers (§ 8 par. 1 Act No. 609/2007).
  • Persons that intend to use tax-exempt electricity they produce themselves shall have an independent reception device that receives tax-exempt electricity only and must apply in writing to the customs authority for authorisation to receive tax-exempt electricity (§ 8 par. 2 Act No. 609/2007).
  • In pursuance of § 13, persons that do not have such a device may claim the refund of the tax (§ 8 par. 3 Act No. 609/2007).
  • Assessment. The customs authority checks the information given in the applications (§ 8 par. 7 Act No. 609/2007).
  • Registration. If the information proves to be correct, the customers are registered and the exemption is granted. On the day of the receipt of the registration certificate, the applicant becomes an eligible electricity consumer (§ 8 par. 7 Act No. 609/2007).

Competent authority

Local customs office

Distribution of costs

State

The costs of the tax exemption are borne by the state, which receives lower tax revenue.

Slovakia

Basic information on legal sources