The current environmental tax reform introduced new environmental taxes into theCzech tax system effective from 1 January 2008. Taxation of electricity, naturalgas, and solid fuels (i.e., energy products) is applied if the energy products aresupplied by the supplier to final consumers or when untaxed or exempted energyproducts are consumed.
Taxation of electricity, natural gas, and solid fuels places additional responsibilitiesparticularly on manufacturers, suppliers, and some consumers of energy products.Each person obliged to pay environmental tax has to comply with specificadministrative obligations. On the other hand, there are new tax exemptionpossibilities. Although the legislation governing environmental taxes is relativelysimple, it contains some provisions that may raise questions for taxpayers andwhich may be used for tax optimisation.
Scope and application of tax exemptions
Unusual methods of supply
Cross boarder transactions
Fulfilment of administrative obligations
Many other technical aspects concerning environmentaltaxes and dealing with energy products could causedifficulties (e.g. determining the calorific value of solidfuels or the amount of effective heat when electricityis produced). We offer assistance with reducingfinancial risks and minimising the costs associatedwith environmental taxes.