Tax regulation mechanism III (Nitrous oxide tax)

Updated: 17.01.2019

Author: Oskar Vågerö

The producers of heat are obliged to pay a tax according to their nitrogen oxide emissions (§ 1 Act No. 1990:613). Heat producers using renewable energy sources are exempt from this obligation. 

Eligible technologies

As renewable energy sources do not produce nitrogen oxide emissions, they are exempt from the tax. 

Aerothermal energy

Eligible.

Biogas

Eligible.

Hydrothermal energy

Eligible.

Biomass

Eligible.

Geothermal energy

Eligible.

Solar thermal energy

Eligible.

Amount

The amount of subsidy is equal to the amount of taxes entitled persons are exempt from. The fee is SEK 50 per full kilogram of nitrogen oxides (§ 5 Act No. 1990:613).

Addressees

Renewable heating is exempt from these taxes. Producers of renewable heating products are exempt from the tax (§ 4 Act No. 1990:613).

Procedure

Process flow

  • The taxable event occurs when nitrogen oxides are emitted in a heat production unit (§ 4 Act No. 1990:613).
  • The accounting period for the levy is the calendar year (§ 8 Act No. 1990:613).
  • Persons subject to the levy must register with the Environmental Protection Agency (§ 8 Act No. 1990:613).
  • The declaration must be submitted to the Environmental Protection Agency by no later than 25 January of the year following the emissions (§ 10 Act No. 1990:613).
  • The levy must be paid by 1 October (§ 11 Act No. 1990:613).

Competent authority

The Swedish Environmental Protection Agency (Naturvårdsverket) (§ 6 Act No. 1990:613).

Distribution of costs

State

The costs of the tax exemptions are borne by the state (§ 1 Act No. 1990:613).

Sweden

Further information

Basic information on legal sources