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. |
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| Biogas | Eligible. |
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| Hydrothermal energy | Eligible. |
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| Biomass | Eligible. |
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| Geothermal energy | Eligible. |
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| Solar thermal energy | Eligible. |
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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).
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Competent authority | The Swedish Environmental Protection Agency (Naturvårdsverket) (§ 6 Act No. 1990:613). |
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Distribution of costs
| State | The costs of the tax exemptions are borne by the state (§ 1 Act No. 1990:613). |
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Sweden
