Excise tax on natural gas supply

Effective as of 1st July, 2008 natural gas supplies have been subject to the excise tax pursuant to the Act No. 609/2007 Coll. on the excise tax on electricity, coal and natural gas („the Act “). Under the Act Slovenský plynárenský priemysel, a.s. is obliged to tax natural gas supplies to the end user except for the natural gas supply to the gas company, natural gas supplier or final end user consuming natural gas for purposes exempted under the Act

Tax rate

Under the Act the natural gas tax rate used as a fuel for heat production has been set as follows:

1st July, 2008 – 31st Dec., 2009

0,02 SKK/kWh

Changes in invoicing for natural gas supply

Customers in the category of medium off-take and large off-take (with contractual volume over 633 thousand kWh) will be invoiced the excise tax in the final invoice based on actual consumption in the given invoicing period.

Tax exemption

Natural gas is exempted from the excise tax in case it is used (§ 31 sec. 1 of the Act)::

for dual purposes
in mineralogical processes
for other purpose than fuel material or as a fuel for heat production
for combined production of electricity and heat
for electricity production
as a fuel material
by an end user of natural gas in a household
for operation purposes and technological purposes in a gas company including losses in technologically substantiated quantity, specifically also in case of natural gas transmission or distribution
for heat production for a household
for activities directly related to transmission of persons or goods in the railroad transportation carried out as part of business

Tax exemption for some Flat and Non-Residential Space Owners´ Associations, Asset Management Companies and Housing Cooperatives

Exemption from excise tax on natural gas also applies to supply of natural gas supplied to Flat and Non-Residential Space Owners, Asset Management Companies as well as Housing Cooperatives executing facility management of flats and non-residential spaces in apartment houses. Nevertheless, the tax exemption only applies to those of the above given entities (Associations, Asset management Companies, Housing Cooperatives), which transfer charging of the costs included in the invoice issued by SPP, a.s. to individual households.

In case you meet the given conditions we wish to ask you to send information on the list of off-take points for which we will apply the excise tax exemption. The form "Information on the list of off-take points for purposes of the natural gas excise tax exemption" is available here

Other supply free of tax, tax exemption ( § 31 sec.2 and 3 of the Act)

From the excise tax there has also been exempted natural gas designed for production of compressed natural gas used as a fuel, as well as natural gas present in the regular tanks of motor vehicles, machines, air-conditioning, cooling and similar equipment when entering the tax territory from another member state or from a territory of any third country, serving for their proper drive or operation.
Similarly, the excise tax is not imposed on natural gas used by a foreign agent (§ 40 of the Act).

Documents necessary for applying for the tax exemption, for non taxation

The final user of natural gas who wishes to take natural gas free of tax under § 31 sec. 1 letter a) through e), i) and j) of the Act shall submit an original copy, or a notarized copy of the permission for natural gas off-take exempted from tax issued by the customs authority - a copy designed for the natural gas supplier (note: the user must submit the permission at the latest at the first off-take of natural gas exempted from the excise tax)

The gas facility, NG supplier or end customer having become a tax payer shall submit the following:

a notarized copy of the document on the tax payer registration (issued by the customs authority)
a statement that the company has been registered as a tax payer under § 35 sec. 5 of the Act (only if applicable for the company)

The foreign agent submits:

an original copy or notarized copy of the statement issued by the Ministry of foreign affairs of the Slovak Republic on the status of the foreign agent as well as on meeting the condition of reciprocity, (the user is obliged to submit the statement at the latest with the first off-take of natural gas exempted from tax)

In addition to the above documents – each customer of the category of medium off-take and large off-take applying for the tax exemption or possibly non taxation shall submit :

information on the status of the meter as of the date directly preceding the date of the first off-take of natural gas exempted from tax

Based on the publication of the Methodological Guideline of the Ministry of Finance of the Slovak Republic on some of the provisions of the Act No. 609/2007 Coll. on the excise tax on electricity, coal and natural gas as well as on the amendment of the Act No. 98/2004 Coll. on the excise tax on mineral oil as amended by later regulations in the wording of the Act 283/2008 Coll. (herein after only the Methodological Guideline of MF SR) we wish to inform you that according to the Methodological guideline of the MF SR the natural gas excise tax exemption also applies for natural gas supplies supplied to associations of residential and non residential premises owners, management agencies as well as housing cooperatives, which provide for administration of flats and non residential premises in an apartment house. The tax exemption, though, applies only to those of the above given entities (Associations, Managers, Housing cooperatives), which charge the individual households with the costs on the basis of the invoice for gas supply issued by SPP, a.s.

Delivery of the required documents

The customers of the segment of small commercials can deliver the given documents as well as any changes in the given documents (the original copy or notarized copy of the changed document) to the address of SPP and customers of the segment of large companies to their sales manager, namely at the latest one day before the permitted supply exempted from the excise tax pursuant to the law